Goodmorning from @MJCentre. Stay tuned and watch live as we announce our half year results from 7.00am on j.mp/SafaricomLiveS…. #SafaricomHYResults #NaweKilaWakati 
It is with great pleasure that I, on behalf of the Safaricom Board of Directors, formally welcome you to the announcement of our Half Year results for the financial year 2018-2019. Chairman, Nicholas Ng'ang'a. #SafaricomHYResults #NaweKilaWakati
These results are presented against the backdrop of a significant milestone for our business, having recently celebrated our 18th anniversary with a renewed commitment to our customers. Chairman, Nicholas Ng'ang'a.#SafaricomHYResults #NaweKilaWakati
It is my sincere hope that you have had a chance to partake of the various offers presented to our customers as a sign of our appreciation as we marked this milestone. Chairman, Nicholas Ng'ang'a.#SafaricomHYResults #NaweKilaWakati
As I am sure you are all aware, the economy is not performing as well as it has the potential to. Chairman, Nicholas Ng'ang'a.
#SafaricomHYResults #NaweKilaWakati
#SafaricomHYResults #NaweKilaWakati
Businesses are yet to recover from the difficulties experienced in the last financial year, which was characterised by depressed private sector growth, prolonged electioneering and economic uncertainty. Chairman, Nicholas Ng'ang'a. #SafaricomHYResults #NaweKilaWakati
Consumers have not been spared either, with Kenyans forced to dig deeper into their pockets to cope with rising inflation. Chairman, Nicholas Ng'ang'a. #SafaricomHYResults #NaweKilaWakati
Despite the current circumstances we anticipate better days ahead, while remaining cognizant of the risks threatening sustained economic growth such as: squeezing of private sector credit, rising oil prices & a fiscal deficit that has forced the Government to rein in spending.
Our hope is fuelled by positive economic projections, with the National Treasury anticipating a rebound in GDP growth to 5.8% in 2018. Chairman, Nicholas Ng'ang'a. #SafaricomHYResults #NaweKilaWakati
The optimistic outlook is supported by cooler political temperatures, expectations of improved agricultural output, lower inflation and recovery in the global economy, which should support private sector growth in the medium term. Chairman, Nicholas Ng'ang'a. #SafaricomHYResults
As our business navigates this economic landscape, we also continue to observe keenly the goings-on within the regulatory environment. Chairman, Nicholas Ng'ang'a. #SafaricomHYResults #NaweKilaWakati
We note that the Communications Authority is yet to implement the recommendations contained in the competition study carried out by Analysys Mason. Chairman, Nicholas Ng'ang'a.
#SafaricomHYResults #NaweKilaWakati
#SafaricomHYResults #NaweKilaWakati
We have on several occasions clarified our position before the regulator and more recently before the National Assembly’s Departmental Committee on Communication, Information and Innovation:... #SafaricomHYResults #NaweKilaWakati
... that any interventions pursued by the regulator should encourage innovation and investment rather than create an artificial competitive landscape tilted in the favour of our competitors. Chairman, Nicholas Ng'ang'a. #SafaricomHYResults #NaweKilaWakati
While we await the recommendations following stakeholder submissions made before committee, it is our hope that this matter will be handled with the interests of Kenyans at heart. Chairman, Nicholas Ng'ang'a. #SafaricomHYResults #NaweKilaWakati
In the meantime, we will continue to execute our business strategy with precision, and to observe the rules of fair play while we seek to tap into the opportunities available for growth. #SafaricomHYResults #NaweKilaWakati
It is indeed refreshing to be operating in a market as dynamic and liberal as ours, where market forces are encouraging innovation around unique customer needs, giving consumers more freedom of choice .... #SafaricomHYResults #NaweKilaWakati
& creating a competitive landscape in which subscribers can enjoy the benefits that come with connectivity. Chairman, Nicholas Ng'ang'a. #SafaricomHYResults #NaweKilaWakati
Today’s mobile phone does not just allow you to speak to friends and family: it is a business tool, a learning resource and a bank. Through the mobile phone, we are keeping people connected to people, to knowledge and to opportunities. #SafaricomHYResults #NaweKilaWakati
Over the last 18 years, we have invested greatly in widening our network to allow everyone in Kenya, no matter where they are, to have easy access to connectivity. Chairman, Nicholas Ng'ang'a. #SafaricomHYResults #NaweKilaWakati
Part of the concerns we have is the changing operating environment where, like all Kenyans, we see a significant increase in taxes being levied on mobile services and which will impact delivery of our services. Chairman, Nicholas Ng'ang'a. #SafaricomHYResults #NaweKilaWakati
The Finance Act 2018 increased excise duty applicable on voice, SMS and data from 10 % to 15%, in addition to the prevailing 16 % VAT on mobile services. In addition, the Finance Act introduced excise duty on Internet services. Chairman, Nicholas Ng'ang'a. #SafaricomHYResults
Following these changes, we were forced to increase our headline prices for voice, SMS mobile data, home and enterprise Internet packages, a move that pained both us, and our customers. Chairman, Nicholas Ng'ang'a. #SafaricomHYResults #NaweKilaWakati
We continue to engage the Government in the hope that together, we can find a middle ground that will offer relief to Kenyans and at the same time support the Government’s growth plans as envisioned by the Big Four Agenda. Chairman, Nicholas Ng'ang'a. #SafaricomHYResults
Kenya is a country bubbling with opportunities that will only get bigger as the fight against corruption intensifies & the economy begins to react to favourable conditions such as a narrowing of the fiscal deficit and improved weather conditions among others. #SafaricomHYResults
Despite operating within a relatively challenging environment, our business remains optimistic. Chairman, Nicholas Ng'ang'a. #SafaricomHYResults #NaweKilaWakati
We continue to deliver sustained revenue growth supported by innovation, strategic investment in our network and community engagement initiatives, which are transforming lives all over the country. Chairman, Nicholas Ng'ang'a.#SafaricomHYResults #NaweKilaWakati
Looking ahead, we remain committed to delivering on our strategy by focusing on purpose and people, which we believe will ensure continued growth in shareholder wealth and reinforce customer loyalty. Chairman, Nicholas Ng'ang'a. #SafaricomHYResults #NaweKilaWakati
On behalf of the Board of Directors, management and staff of Safaricom, I thank you all for your continued faith in our vision, for your patience and unwavering loyalty. Chairman, Nicholas Ng'ang'a. #SafaricomHYResults #NaweKilaWakati
Times may be tough right now but we hold on to our hopes for a brighter future, and we plan to finish the financial year strong by fulfilling the promise we made to you and all our customers as we celebrated our 18th birthday: tuko #NaweKilaWakati. #SafaricomHYResults
.@bobcollymore Good morning! It is my pleasure to be here with you today, having just returned from a routine medical check-up in London. #SafaricomHYResults
.@bobcollymore As our Chairman just said, these are challenging times for our business. #SafaricomHYResults
.@bobcollymore As consumers grapple with inflation, higher taxes levied on M-PESA, voice, SMS, mobile and fixed data, our business is finding itself forced to maintain an increasingly delicate balance. #SafaricomHYResults
.@bobcollymore On one hand, we have to deliver relevant products and services at great value to our customers, while on the other, we must protect our shareholders’ wealth. #SafaricomHYResults
.@bobcollymore Despite the opportunities we see for sustained growth, we are concerned about the impact of greater taxation on already strained consumer budgets, which may negate efforts to increase revenue generation. #SafaricomHYResults
.@bobcollymore Safaricom remains the biggest contributor to the exchequer, having paid close to KES 48 billion in taxes as of September 2018. #SafaricomHYResults
.@bobcollymore This includes: KES 10.56 billion in VAT, KES 13 billion in duties, KES 18.8 billion in income tax and KES 5.6 billion in fees paid to the Communications Authority of Kenya. #SafaricomHYResults
.@bobcollymore Our ability to pay such taxes is reliant on the ability of our business to grow, which is in turn dependent on Kenyans being able to afford our products and services. #SafaricomHYResults
.@bobcollymore So it is our hope that the Government will reconsider its position on the new taxes, and through engagement with all the relevant stakeholders come to a more sustainable means of generating revenue. #SafaricomHYResults
.@bobcollymore The strength of our brand is not just in the expansiveness of our network: it’s in the people we serve, the people who work at Safaricom, and in our purpose – which is to transform lives. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore Today, we can proudly say that because of our commitment to transforming lives, we are creating great value for Kenyans, and for the economy as a whole. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore In the last financial year, our revenue accounted for 6.5% of the country’s Gross Domestic Product, generated largely by customers who were able to enjoy access to voice, SMS, data and M-PESA at lower costs. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore Strong business performance allowed us to create more wealth for our shareholders, who enjoyed a significant increase in dividends with a pay-out of over KES 44 billion shillings. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore During the same period we also sustained over 890,000 jobs both directly and indirectly, including over 6,000 employees, 50 per cent of whom are women, and 1.7% of whom are people living with disabilities. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore We recognise that today’s mobile phone is not just a communication device: it is a powerful tool for development. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore The mobile phone has the power to deliver solutions to some of the world’s most pressing challenges. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore So guided by the Sustainable Development Goals, nine of which our business adopted in 2017, we are leveraging this power to deliver shared value propositions to transform lives. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore Today, social innovations such as M-TIBA and Shupavu291 are benefiting millions of Kenyans by offering sustainable solutions in healthcare and education, and offering a glimpse into the world of possibilities contained in each mobile phone. #SafaricomHYResults
.@bobcollymore Additionally, through the @SafaricomFDN , we continue to provide solutions to some of the every-day challenges faced by Kenyans all over the country. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore By engaging multiple partners, the Safaricom Foundation has over the last 18 years provided over one million Kenyans with access to free healthcare through mobile medical camps held countrywide. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore We have improved the learning environment for over 900,000 children across the country; and provided economic empowerment opportunities to 240,000 people through community-based income generation projects. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore Last week we officially unveiled the @MPESAFdnAcademy , which is benefitting close to 500 bright children from disadvantaged backgrounds all over Kenya. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore Here, we are giving these promising young students the opportunity to learn in a world-class facility, and moulding them into Kenya’s future leaders. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore During this launch we also pledged to finance secondary school and university education for an additional 100 students from around the country. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore The @MPESA_FDN will cover their tuition fees and other costs through to the completion of university, whether locally or abroad. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore For this, we want to say thank you to our M-PESA customers, as every shilling spent on M-PESA a needy child gets education. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore Our country has come a long way since the turn of the century, when mobile phones were the preserve of the wealthy. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore The democratisation of the mobile phone can be traced back to the year 2000, when my predecessor, @michaelj2 , and his small team, made the decision to reduce the price of SIM cards to KES 2,500. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore This was quickly followed by a further reduction to KES 99 per SIM card in 2002. A year later, Safaricom introduced per second billing, making it more affordable for more Kenyans to communicate. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore As our customer base has grown, we have continuously invested in our infrastructure to ensure that Kenyans, no matter where they were in the country, stay connected. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore These investments also saw us become the first network in East Africa to launch 4G+ in 2017, offering our customers double the speed of 4G and cementing our position as a pace setter in the delivery of new technologies #SafaricomHYResults #NaweKilaWakati .
.@bobcollymore This has contributed significantly to the growth in our mobile data revenues with the average revenue per user growing by 67% year-on-year, to stand at 640MBs. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore The expanded network also means that we continue to defy global trends on voice, reporting a blended growth of 1.4% YoY. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore In addition, we maintained good momentum in our fixed service business, having rolled out a further 800km of fibre to achieve a total of over 5,500km. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore This enabled us to reach an additional 30,000 homes with our Fibre To The Home; double the number of homes passed to over 200,000; and connect over 2,000 buildings with Safaricom Fibre to the business. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore As you will see a little later, our CAPEX investments reflect opportunities presented by a robust network. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore Today, I am pleased to announce another first in the global payments space. We have partnered with Western Union to make it possible for our customers to send money via M-PESA to virtually any individual or business Worldwide. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore The recipient of this money will then be able to withdraw the funds either from their bank or any one of over 500,000 Western Union outlets around the world.
#SafaricomHYResults #NaweKilaWakati
#SafaricomHYResults #NaweKilaWakati
.@bobcollymore We will be sharing more on this when we make the official announcement in both Nairobi and San Francisco in the coming weeks. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore We are building a resilient business model that will diversify our income streams and deliver sustained growth, while at the same time providing home-grown solutions to the challenges we face every day. #SafaricomHYResults
.@bobcollymore Digifarm, our mobile-based agribusiness platform, aims to address the challenges that keep smallholder farmers small. #SafaricomHYResults
.@bobcollymore Over 200,000 of these farmers are using the service regularly, 14,000 of them have accessed credit so far, and we see a great opportunity to reach a market of approximately 20 million farmers all over the country. #SafaricomHYResults
.@bobcollymore We expect that many of these farmers will be able to sell their produce online, and believe that our e-commerce platform, @MasokoKe, has the potential to connect the watermelon farmer in Turkana for example, to a trader in Eldoret. #SafaricomHYResults
.@bobcollymore @MasokoKe ’s vision is to democratize e-commerce by connecting customers and manufacturers to the online marketplace, in that way “Taking Africa to the world”. #SafaricomHYResults
.@bobcollymore Our vision is to use the platform to bring the market to small businesses wherever they are in Kenya, and to give them access to opportunities presented by the rapid growth of e-commerce across the globe. #SafaricomHYResults
.@bobcollymore So as part of our sustained push to achieve this vision, we are investing in resources to enable the platform efficiently support a market of six million customers; leveraging partnerships to achieve last mile delivery; #SafaricomHYResults
.@bobcollymore ...and harvesting insights from big data and analytics to improve the customer journey. #SafaricomHYResults
.@bobcollymore As @MasokoKe turns one, I am happy to report that are we making encouraging progress. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore I would like to acknowledge that we have a formidable task ahead of us, but one that we are well equipped to handle. Our business continues to register positive returns. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore Service revenue grew 7.7% to KES 118.21 billion during H1, while net income increased by 20.2% to KES 31.5 billion, supported by the consumption of relevant products and services by our 29.94 million customers. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore We acknowledge that we are indeed operating in a challenging business environment. But the challenges we face are far outweighed by the opportunities present for sustainable growth. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore As we look towards the future, we remain committed to our purpose of transforming lives; to reflecting the innate goodness, industriousness and optimistic spirit of the Kenyan people... #SafaricomHYResults #NaweKilaWakati
.@bobcollymore ...to putting our customers first, delivering great returns for our shareholders, and to walking with you every step of the way. #SafaricomHYResults #NaweKilaWakati
.@bobcollymore Our promise to you is this: tuko Nawe Kila Wakati, because we believe that when we come together, great things happen. #SafaricomHYResults #NaweKilaWakati
.@sateeshkamath Starting with service revenue shows the service revenue growth drivers. M-PESA was the main driver of growth for the period, accounting for nearly two thirds of the 7.7% point increase, and growing 18.2% YoY. #SafaricomHYResults #NaweKilaWakati
.@sateeshkamath M-PESA now accounts for 30.0% of service revenue, indicating the resilience in our business model vis a vis a traditional telco. #SafaricomHYResults #NaweKilaWakati
.@sateeshkamath Mobile data, which is currently going through a pricing journey, experienced easing of growth and was up 10.8% YoY. Mobile data accounts for 16.5% of service revenue. #SafaricomHYResults #NaweKilaWakati
.@sateeshkamath The third block is fixed data, and although still a relatively new line of business, now contributes 3.3% of Service Revenue and recorded growth of 21.0% for the period. #SafaricomHYResults #NaweKilaWakati
.@sateeshkamath I would like to call out that we are very encouraged by the significant commercial recovery that has taken place within M-PESA in the period. #SafaricomHYResults #NaweKilaWakati
.@sateeshkamath There was a significant acceleration in growth across all areas. Lipa Na M-PESA revenues have returned to growth this year following the investment made last year, recording an increase of 49.9% YoY compared to 0.9% last year. #SafaricomHYResults #NaweKilaWakati
.@sateeshkamath I am also pleased to point out P2P; growing at an impressive 26.2% YoY up from 17.1% last year driven by CVM campaigns such as #MaishaniMPESATU. #SafaricomHYResults #NaweKilaWakati
.@sateeshkamath There is a shift in revenue contribution, with new business now contributing 27.2% of M-PESA revenue up from 15.8% 3 years ago
We close H1 with 12 transactions per customer per month, up 14.8% YoY. #SafaricomHYResults #NaweKilaWakati
We close H1 with 12 transactions per customer per month, up 14.8% YoY. #SafaricomHYResults #NaweKilaWakati
.@sateeshkamath As @bobcollymore mentioned, the future of M-PESA is an exciting one, as we continue to find new ways to expand the eco-system both locally and globally. #SafaricomHYResults #NaweKilaWakati
.@sateeshkamath I would like to call out that we are very encouraged by the significant commercial recovery that has taken place within M-PESA in the period. #SafaricomHYResults #NaweKilaWakati
.@sateeshkamath I am pleased to note that Lipa Na M-PESA revenues have returned to growth this year following the investment made last year, recording an increase of 49.9% YoY compared to 0.9% last year. #SafaricomHYResults #NaweKilaWakati
.@sateeshkamath Moving on to mobile data, as can be seen from the chart on the bottom left we can see a strong growth in usage for the period, up 67.3% YoY from 382 mb/user to 639 mb/user. #SafaricomHYResults #NaweKilaWakati
.@sateeshkamath While revenue on an absolute basis increased by 2 billion shillings from 17.5 billion in HY18 to 19.5 billion in HY19, we witnessed a slow-down in the growth rate for the period down from the 31% increase recorded last year to 10.8% this year #SafaricomHYResults
.@sateeshkamath you can see our in bundle revenue contribution has grown from 61% 3 years ago to 74% today which is expected and welcomed as we continue to push a worry free experience for our customers and offer more for more. #SafaricomHYResults
.@sateeshkamath We have entered a new phase of evolution for mobile data, as customers seek more value from data offerings and while it will impact short-term growth rates we believe it is necessary to unlock the true potential of this revenue stream. #SafaricomHYResults
.@sateeshkamath The future opportunity is demonstrated by the fact that more than 70% of the data capable devices on our network currently consume less than 100MB of data, the future for mobile data revenue growth will see us focus on stimulating growth. #SafaricomHYResults
.@sateeshkamath We are very pleased by the strong acceleration in our fixed service, we connected an additional 30,000 homes and more than doubled our coverage YoY. #SafaricomHYResults
.@sateeshkamath We plan to roll-out fibre to more homes this year, and see future opportunities in areas like surveillance and content, which will enhance monetization of the service. #SafaricomHYResults
.@sateeshkamath I am pleased to announce that EBIT or Earnings Before Interest and Taxes recorded strong growth of 18.7% YoY in the period. #SafaricomHYResults
.@sateeshkamath All of this has resulted in a 20.2% increased earnings per share for the period and will see us continuing to generate strong returns for our shareholders. #SafaricomHYResults
.@sateeshkamath Looking now at capital expenditure – in the first half of this year, we invested 17 billion shillings, increasing our number of sites and expanding 3G and 4G coverage. #SafaricomHYResults
.@sateeshkamath We continue to invest heavily in our network and systems, with this year’s spend remaining largely in line with the previous year in absolute terms. #SafaricomHYResults
.@sateeshkamath Our continued focus on enhancing monetization and cost savings opportunities upon deployment has enabled us achieve mid-teens CapEx intensity, with an expected range of 14-15% for this financial year. #SafaricomHYResults
.@sateeshkamath while this continues to reduce each year it remains above industry standards as we strive to provide the best technology to our customers. #SafaricomHYResults
.@sateeshkamath I am pleased to reiterate that despite strong headwinds we remain confident in meeting our guidance for the year, which is an EBIT range of 85-89Bn shillings. #SafaricomHYResults
.@sateeshkamath We expect CAPEX also to remain in the range of 35-38Bn as guided at the beginning of the year. #SafaricomHYResults
Our half-year net profit registered a 20.2% growth to Sh31.5 billion. #SafaricomHYResults #NaweKilaWakati
