Safaricom Plc records major dip in earnings for its financial year

Top mobile service provider Safaricom Plc has posted a 6.8 percent dip in earnings for its financial year ending in March 2020.

This with profits falling to 68.7 billion shillings from 73.6 billion shillings last year.

This is the telco operator’s first annual profit dip in nearly a decade since the year closing in March 2012.

Safaricom CEO Peter Ndegwa said the marginal decline in earnings for the operator is largely attributable to the waiver of fees on mobile money transactions of up to Ksh.1000.

This lies on record between the end of March and December last year.

M-Pesa earnings in the year shrunk marginally by 2.1 per cent to Ksh.82.6 billion from Ksh.84.4 billion previously.

This, despite a strong recovery in the income head in the second half of the telecom’s financial year.

Revenue from voice was similarly depressed in the year, dipping slightly to 42.4 billion shillings from 43.5 billion shillings a year earlier.

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