Safaricom is ready to pay a dividend of Sh56 billion after posting a 19.5 percent return in net profit in the year ended in March, cashing up its shareholders in the wake of the covid-19 crisis.
Nairobi Securities Exchange posted a payout of Sh 1.40 per share from the Sh 1.25 per share paid a year earlier to its shareholders. The rise in net profit was driven by higher revenue from its internet provision and its financial services businesses such as Mpesa, which is its second-largest revenue stream as well as its operating expenses.
Its sales grew 4.9 percent to Sh 265.5 billion while net profit moved from Sh 62.49 billion to Sh 74.7 billion, reflecting a 19.5 percent growth.
The government, which is part of the shareholders, will receive dividends worth Sh19.6 billion. The capital is set to help the Treasury to deal with revenue shortfalls that have highly been caused by the Covid-19 pandemic containment measures which have reduced economic activities.
Safaricom increased its subscribers by 12.2 percent to 35.6 million. Its internet bundles without expiry grew by 12.1 percent to Sh 40.7 billion, while revenue from Mpesa rose by 12.6 percent to Sh 84.4 billion, a third of the company’s service revenue.