Safaricom Annual Profit Drops To Ksh.67.5 Billion
Telecommunications operator Safaricom has posted a marginal 1.7 per cent drop in its full-year profit to March 31 with net earnings at Ksh.67.5 billion from Ksh.68.7 billion previously.
The dip in profitability is largely attributable to costs related to the operator’s expansion project in Ethiopia.
Total spending by Safaricom in the year or CAPEX for instance hit Ksh.49.8 billion in the year against an earlier guidance of Ksh.39.3 billion.
The Safaricom Ethiopia unit in the period made a net loss of Ksh.2.7 billion with Ksh.5.1 billion in operating costs within the period.
Further, the Ethiopian operations used up Ksh.10.4 billion in capital with no revenues earned in the period as the unit is yet to commence commercial operations.
Despite headwinds in the macroenviron...
