Thread by @SafaricomPLC

.@PeterNdegwa_ Our plan targets over 10Million Kenyans who are using 2G phones to be able to purchase a 4G phone affordably without straining their wallets. #SafaricomHYresults #TwendeTukiuke

.@PeterNdegwa_ As a result, we have seen improving Service Revenue trajectory in quarter two, signalling slow economic recovery and improved execution.#SafaricomHYresults #TwendeTukiuke

.@PeterNdegwa_ We have reported sustained recovery across most of our key performance indicators. The growth in our customer numbers across the different KPIs, is a positive sign of the business resilience and the opportunities for the future.#SafaricomHYresults #TwendeTukiuke

The impact of our response to Covid-19, in zero rating M-PESA transactions, weighed heavily on our performance for half 1, with service revenue posting a decline of 4.8%, and EBIT a decline of 10.5%. – Ilanna Darcy #SafaricmHYResults #TwendeTukiuke

I am pleased to note that our operational efficiencies, yielded cost savings that helped alleviate the pressure on contribution margin. We saw opex reduce 10.6% on a reported basis, 6% on an underlying basis in the period- Ilanna Darcy #SafaricomHYResults #TwendeTukiuke

Our continued focus on providing relevant products to our customers, yielded a 10.2% increase in our one month active subscribers for the period, with customers growing across all revenue streams- Ilanna Darcy #SafaricomHYResults #TwendeTukiuke

Voice also declined, it was under significant pressure in quarter 1 but as Peter called out, strong CVM offerings yielded a much stronger performance in quarter 2.- Ilanna Darcy #SafaricomHYResults #TwendeTukiuke

Fibre to the home performed very well for the period, driven by increased demand necessitated by working and schooling from home- Ilanna Darcy #SafaricomHYResults #TwendeTukiuke

The national police service contract under Fixed data revenue, which ended in November 2019 being the main driver of the decline in the period- Ilanna Darcy #SafaricomHYResults #TwendeTukiuke

M-PESA is the most impacted segment within our portfolio, posting a year on year decline of 14.5% and a 23.5% decline in ARPU.- Ilanna Darcy #SafaricomHYResults #TwendeTukiuke

The decline is driven by the zero rating of transactions which affected transfers and payments. Betting continues to decline as we lap the impact of the contraction of the industry that started last July-Ilanna Darcy #SafaricomHYResults #TwendeTukiuke

Recovery pattern across all main revenue streams is driven by an easing of restrictions, opening up of the economy, continued innovation of our offerings, and a shift in consumer behavior.- Ilanna Darcy #SafaricomHYResults #TwendeTukiuke

The value of M-PESA transactions increased 32.9% year on year. This is supported by the innovations made during the period.- Ilanna Darcy #SafaricomHYResults #TwendeTukiuke

The strength of the underlying KPI’s along with the innovation pipeline will ensure that we are well positioned to drive recovery in M-PESA.- Ilanna Darcy #SafaricomHYResults #TwendeTukiuke

The growth in mobile data in the second quarter, more than offset the decline in voice, with data increasing by 1.2 billion shillings in the quarter while voice declined by 0.7 billion shillings.- Ilanna Darcy #SafaricomHYResults #TwendeTukiuke

There is consecutive growth quarter on quarter, with an overall growth of 14.1% in the period. Bundle customers largely grew in line with overall customers at around 5%. -Ilanna Darcy #SafaricomHYResults #TwendeTukiuke

Customers consuming more than 100mbs and active 4G devices grew at a much faster pace of 8% and 16% respectively, thus signifying an increase in data penetration in the period. -Ilanna Darcy #SafaricomHYResults #TwendeTukiuke

On fixed data, we are very pleased by the strong acceleration of our fibre to the home business, which benefited from the work and study-from-home shift. This was the main growth driver for this revenue stream, growing 47.2% YoY- Ilanna Darcy #SafaricomHYResults #TwendeTukiuke

However, fixed enterprise did not perform so well, impacted heavily in quarter one with the closure of offices and some customers downgrading their packages. Ilanna Darcy #SafaricomHYResults #TwendeTukiuke

But we have seen a significant increase in the number of customers, mainly driven by SMEs taking up our LTE offering, however this customer uplift is offset by ARPU erosion from a lower value offering. Ilanna Darcy #SafaricomHYResults #TwendeTukiuke

We have seen a shift in consumer behavior around M-PESA, with deposits and the associated commission actually growing in the period. Ilanna Darcy #SafaricomHYResults #TwendeTukiuke

There is significant opex saving to help mitigate the impact on our top line performance and some of the adverse cost movements in the period like foreign exchange- Ilanna Darcy #SafaricomHYResults #TwendeTukiuke

Thanks to sustained operational efficiencies, we continued to deliver opex savings in the year, with a saving of 6% on an underlying basis excluding one off releases. Ilanna Darcy #SafaricomHYResults #TwendeTukiuke

We sustained investment in our network and systems, with our capital additions for the first half amounting to KShs 22.75bn, an increase of 25.5% year on year.- Ilanna Darcy #SafaricomHYResults #TwendeTukiuke

We continue to enhance our network in support of traffic growth, coverage, experience and investing in our IT capability, for example M-PESA, where we rolled out the latest version of the platform.- Ilanna Darcy #SafaricomHYResults #TwendeTukiuke

Whilst our capex intensity will show an increase this year, we are confident that the investment is well placed to support the future growth of the business. - Ilanna Darcy #SafaricomHYResults #TwendeTukiuke