Safaricom Director Resigns

Safaricom makes Sh1,778 per second

In a statement in the local dailies, Company Secretary Kathryne Maundu said that already Mr Till Streichert been appointed to replace Mr Otty, who has served in the position for the last five years.

“The Board of Directors hereby announces the resignation of Mr John William Lorimer Otty as a Director of the Company with effect from 8th May 2018.

“The Board is pleased to announce the appointment of Mr Till Streichert as a substantive Director of the Company with effect from 8th May, 2018,” reads part of the statement signed by Mrs Maundu.

The newly appointed Mr Streichert has been serving as the Alternative Director to Mr Mohamed Shameel Joosub.

The resignation of Mr Otty comes a day after the company announced a net profit of Sh55.29 Billion, the highest any company has attained in the Kenyan economy.

Sh55.29 billion net profit

The profit by Kenya’s largest listed firm by capitalization was a growth of 14.3 per cent above the Sh48.4 billion in the previous year. Total revenue grew by a tenth to Sh233.7 billion, also a record by a Kenyan company.

Safaricom’s net profit is now more than twice that of the next most profitable listed firm, KCB’s Sh19.7 billion.

The firm added 1.4 million customers to its books, taking its total base to 29.6 million, with 20.5 million active 30-day M-Pesa users. This means that the company earned a net of Sh1,868 per customer in the 12-month period.

Safaricom chief financial officer Sateesh Kamath on Wednesday said M-Pesa revenue grew 14.2 per cent to Sh62.9 billion while mobile data was up 24 per cent to Sh36.4 billion in the period.

Voice revenue growth remained relatively low at 2.4 per cent to Sh88.9 billion while SMS revenue was up 6.2 per cent to Sh17.7 billion.

“M-Pesa and mobile data continued to be the drivers of growth in the year. Contrary to global trends, voice revenues also grew. We also recorded revenue growth in fixed data, a relatively new business, which is already accounting for three per cent of our service revenue,” said Mr Kamath.

Voice and SMS revenue has been hurt by competition from Internet-based communication applications like WhatsApp, which have become popular with users due to lower cost and widespread access with the growth in usage of smart phones.

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