Safaricom has posted a drop of 6.8 per cent in their full-year profit for the first time in a decade as they saw a decline in M-Pesa and voice revenue earnings.
The telecommunications company posted the news on Thursday, where they announced that their profit after tax was Ksh 69.7 billion in the year ending March 31st, 2021. This was compared to Ksh 73.6 billion profits in the previous financial year.
Waiver on M-Pesa transactions
The company announced that the earnings from M-Pesa dropped slightly due to the transaction fee waiver that the company put in place in March 2020 to cushion customers against the ravages of COVID-19. Safaricom waived transaction fees of up to Ksh 1000 between March and December 2020.
Earnings in the money transaction dropped by 2.1 per cent, from Ksh 84.4 billion to Ksh 82.6 billion. Money from voice calls was also similarly low, with a slight drop from Ksh 43.5 billion to Ksh 42.4 billion.
Income from mobile data, fixed service rise
However, the company posted a rise in internet services, with revenues for both mobile data and fixed services, including fibre to the home (FTTH).
On mobile data earnings, the company saw a growth of 11.5 per cent, to Ksh 22.6 billion, while fixed data revenue rose by 6 per cent to Ksh 9.5 billion. The rise was fueled by the need for homeschooling and working from home arrangements, as schools closed and companies tried to curb crowding in offices.
Safaricom Chairman, Michael, commended the company’s business resilience, despite starting and ending the year under lockdown.
“The Board takes note of our business resilience, especially the rebound in growth during the second half of the year. This allowed us to support our shareholders during this difficult time,” Joseph said.
Safaricom CEO, Peter Ndegwa, said their purpose of Transforming Lives was their guiding light in decision making after the pandemic was declared. Thus, aside from the Ksh 339 million invested in the community, they would continue to help Kenyans weather the COVID-19 storm.
.@michaelj2 I am proud of the actions that Safaricom took, standing with the country and supporting the social distancing measures such as working from home and use of mobile money for payments, introduced by the government to curb the spread of the virus #SafaricomFYResults
— Safaricom PLC (@SafaricomPLC) May 13, 2021