What do you think of Safaricom Profits? SMS Revenue 17 Billion? SMS?


#1

The carrier’s money-minting M-PESA service saw increased revenues by 14.2 percent to KES 62.91 billion. Other key contributors to admirable financials include outgoing voice (KES 88.96 billion), mobile data that registered a 24.0 percent jump to record KES 36.36 billion in revenue, as well as SMS that was marked by KES 17.72 billion in profits.

Not sure if it is profits or revenue but damn! That’s hell a lot of profits/revenues generated from SMS.

If you apply Porter’s Generic Strategies you’ll realize that quality of service and great customer care is what differentiates Safaricom from the rest. Cost focus is not favorable to common mwananchi but we still hooked up to their services even when other companies have a competitive edge on cost over Safaricom.


#2

Revenue :blush:


#3

This is net profit. They made Ksh 233.7 billion in revenue from data, Mpesa and fixed service. Total payout to shareholders is Ksh 44.07 billion. Alafu niskie mtu akisema Safaricom cannot afford unlimited 4G for a week…:joy::joy::joy:
UPDATE I misread your comment, sms alone generated revenue of 17billion, not profit.


#4

Now imagine Airtel Kenya had revenues of 15 Billion. Total revenue 15 Billion from everything. Safaricom 17 Billion from SMS.


#5

The government was able to walk away with Ksh40 billion in taxes. I want to be a government when I grow up


#6

:joy::joy::joy: So sad, but at least as a whole Bharti Airtel corporation in 2017 it made Ksh 65 billion in profits.

Fun Fact, Imagine Apple made almost the same amount of revenue and profits as Safaricom in 2017…but place kuna “ksh” you replace with “$” :joy::joy:


#7

Is that apple profit 5 trillion or 55 trillion? safaricom is still a toddler next year they might hit 1 billion dollars
but I wonder if faiba can quietly dent their data profits.


#8

Wacha matusi :laughing::laughing::laughing::laughing:

I hope they do. Faiba can but it will take years before people upgrade their phones to get LTE band 28 devices. Most people upgrade phones after 3 - 5 years.

What Faiba needs to do is lower the price of the mifi and wingle devices. At present, the mifi is fairly priced but the modem is so expensive.

If you can remember, GoTV decoders did cost an arm and a leg when digital t.v services launched. But they did cut down the price and even gave free three months of viewing. Customer acquisition is expensive but the long term benefit is of essence.

If Faiba pulls a surprise offer and give discounts on their devices, they’ll run out of stock until next year. Currently, the mifi has been selling as a hot cake to data hungry users but we are just a few. Safaricom depends on people who are able to buy at least 10MB on a daily basis. Now imagine those people are in millions and not hundreds for us who can afford at least 1GB on a daily basis.

On the other hand, I really hope Safaricom breaks the $1 Billion profit mark next year. They deserve it.


#9

Not 100% taxes. :blush:

Dividends (35% of the 44.1 billion dividend payout) - Sh15.42 billion

Taxes - Sh24.62 billion

Unless they launch something revolutionary (No, the M-Pesa chat thing is not revolutionary) in the next few months, $1 billion in profit is at least 8 years away if they sustain their current growth.

They will need another Ksh. 200 billion in revenue to get there. I am not sure Kenyans have another 200 billion to give Safaricom.

Maybe launch in another country?


#10

Would like to see the breakdown of this. I suspect most is from companies using bulk SMS services.


#11

They are in DRC Congo. I can’t remember the name of the network but I do have a Congolese friend with a Simcard that is partially branded Safaricom and their local network back in DRC. I have forgotten the name.

It’s a high time they expand abroad. Shida ni conflict of interest with Vodacom.

Probably but I have been caught off guard many times sending sms using credit. It might be the case here since Safaricom has most seniors and middle class who might find it cumbersome to dial *188# or may be they don’t even know the sms bundles exist.

Also, keep in mind we do send an sms at least once a day thinking that it’s cheaper than calling or especially when you can’t pick a call or the recipient is unreachable.


#12

Safaricom ventures like Masoko and others have the potential to make it achieve a $1 billion profit target. Shida ni ati they abandon or try to milk every cent off these projects before the users get used to them. If they could be patient enough and make these ventures work appropriately, Ugandans, Nigerians and others would be begging it to move to their market


#13


They got stock just the other day and they have been sold out. This is a business opportunity.


#14

Yes they are out of stock for nearly two weeks now. They should consider placing pre-orders for the device. It’s like they are afraid of overwriting inventory since they have no idea of customer demand.


#15

This is true. If properly executed there is a chance to get the extra $200M - they’ll simply take this revenue from other companies. The issue is lack of visionary mindset/overall strategy, copy-paste mentality, poor execution, low to no customer value and quick abandonment.

I still believe that if they changed their mindset to providing REAL value to customers, demand for their products would outpace supply. Competitors would be a non-issue.

The day is soon coming when they’ll have to let go of the shopkeeper leading the company and allow an engineer to helm, if they want to reach the next generation of users. Microsoft did it and it’s now one of the most exciting companies in tech to watch.


#16

They are selling plots right now and they do have a real estate coming up complete with a shopping mall. Well, they might be lucky and hit the billion mark. I hope they do. I pray they do.


#17

Please get us more info on this…


#18

I will talk to him Monday and see if we can get more info about this.


#19

Election period as well.


#20

This explains it now