The potential of ICT investment in Kenya is illustrated by the phenomenal financial results posted by Safaricom. A previous posting (1/06/07) in this blog had profiled the company and its CEO.
Safaricom has emerged as one of the most profitable Kenyan company with historic results that saw its pre-tax profits hit Sh17 billion. The results were released today (20th June, 2007).
This is the highest that a Kenyan company - whose results are made public - has made, eclipsing corporate giants listed on the Nairobi Stock Exchange.
With profits at this level, Safaricom nearly made as much money as what Kenya Airways, East African Breweries and Barclays Bank did combined. These businesses made a combined pre-tax profit of Sh21 billion on revenues of Sh94 billion.
This is the kind of money that all Kenyan banks and insurance companies have been struggling to make in a single year for sometime. Kenyan banks combined made a pre-tax profit of Sh27 billion in 2006.
With Safaricom’s revenues and net profits growing by over 30 per cent over 2006, these results underlie a robust performance of the economy, but also opens a new debate over whether mobile carriers are overcharging customers with the company now earning an operating margin of 38 per cent.
This means that for every shilling the company generates in revenues, 38 cents goes into operating profits. More on http://www.bdafrica.com/.