Safaricom half-year profit has risen by 12.1% to Sh37bilion from Sh 33.1 billion last year, boosted by higher M-Pesa revenue following resumption of charges on low-value transactions.
Speaking at the announcement this morning, CEO Peter Ndegwa said, “We are pleased with our performance in H1 FY22 recovering from a suppressed H1 FY21. Service revenue grew 16.9% YoY in H1 FY22 supported by strong execution, recovery in M-PESA revenue following the return to charging on Person to Person and Lipa na M-PESA transactions below KShs 1,000 beginning January 2021, and improved consumer confidence and business activity in the economy. In
the period, one month active customers grew 4.7% YoY to 31.75Mn adding 1.4Mn customers to the base.
Following the increase of excise duty on airtime and other telephony services from 15% to 20% effective 1 July 2021, we aborbed tax on mobile data and passed on tax on voice and fixed which slowed down industry momentum.” he added.
Highlights from the announcement
M-PESA revenue recorded strong performance growing 45.8% YoY in H1 FY22 following the return to charging at the beginning of January 2021. Total transaction value grew 51.5% YoY to KShs 13.7Trn while volume of transactions grew 42.0% YoY to 7.3Bn.
M-PESA wallet to bank and bank to M-PESA wallet transactions continue to be free and these account for 18.1% of the total value of M-PESA transactions. Chargeable transactions per one month active customers grew 91.9% YoY to 18.1 transactions.
Innovation in digital financial services has been a key growth driver for M-PESA.
Mobile data revenue grew 6.3% YoY weighed down by price rationalization, absorbed tax from excise duty adjustment on data from August 2021 and a lapping effect of the accelerated growth recorded in H1 FY21 at the onset of the pandemic in Kenya.
Distinct data bundle customers grew 8.1% YoY to 17.0Mn, data customers using more than 1GB increased 26.7% YoY to 6.8Mn while Active 4G devices grew 37.3% YoY to 9.7Mn. Effective rate per MB declined 27.0% YoY in H1 FY22.
Fixed service and wholesale transit revenue grew 21.1% YoY to KShs 5.5Bn supported by 20.1% YoY growth in enterprise revenue to KShs 3.5Bn and 22.9% growth in consumer revenue to KShs 2.0Bn. FTTH customers grew 17.1% YoY to 153.4k while enterprise fixed customers grew 38.3% YoY to 44.9k.
Capital expenditure for the six months ended 30 September 2021 stood at KShs 22.81Bn growing at 0.3% YoY. 4G, 3G and 2G population coverage now stands at 95.9%, 96.3% and 96.9% respectively.
