Thread by @MwangoCapital

Welcome to the Safaricom [@SafaricomPLC] Full Year Earnings release.

You can follow the proceedings on YouTube. We will be live-tweeting the key points in a thread below this Tweet.

#SafaricomFYResults #MwangoInsights

"Mpesa foundation, Kwale county and the Kenya Red Cross [@KenyaRedCross] installed a solar powered water pump at Nyalani Dam that will supply irrigation water to over 105 acres of land"

-Michael Joseph

#SafaricomFYResults #MwangoInsights

"Mpesa foundation, partners with Getrudes Hospital on a telemedicine project that will provide specialized medicine to over 32000 children over 6 counties"

-Michael Joseph

#SafaricomFYResults #MwangoInsights

"Mpesa foundation and Safaricom PLC [@SafaricomPLC] commits to donate KES 100M to the #pamojatuungane campaign to help in hunger stricken areas such as Marsabit County"
-Michael Joseph

#SafaricomFYResults #MwangoInsights

"The upcoming elections presents political risks that directly impact the business. Other headwinds include rising inflation pressure and heightened regulatory risk"
-Michael Joseph

#SafaricomFYResults #MwangoInsights

"Key Milestones in the mpesa Journey include:
-Enhanced level of automation and digitisation
- Building capacity for in-house tech experts
-Evolving Mpesa into a 2 sided digital platform
-Big data analytics investment"

-@PeterNdegwa_

#SafaricomFYResults #MwangoInsights

"-Safaricom PLC has built 567 new base stations in 2021 to enhance 4G coverage

-Additional 800kms fibre cable in 2021
"
@PeterNdegwa_

#SafaricomFYResults #MwangoInsights

Safaricom PLC [@SafaricomPLC] Market Share

✅ 64.3% Mobile data customer
✅70.4% voice traffic
✅37% fixed data customer
✅42 million subscribers

#SafaricomFYResults #MwangoInsights

Safaricom PLC [@SafaricomPLC] Network Coverage

✅ 97% population 4G coverage
✅2.4 million 4G newly added devices
✅95% quality assessment score by CA [@CA_Kenya]
✅ 2000 transactions per second on MPESA
✅99.99% Systems availability

#SafaricomFYResults #MwangoInsights

Safaricom PLC [@SafaricomPLC] Mpesa Highlights

✅ Crossed 30 million customers
✅ 5.3 million super app downloads
✅ 1 million active consumers and 420k business app downloads
✅ 11 million active Lipa na Mpesa customers (+32% YoY)
✅ 492k LNP customers

#SafaricomFYResults

Safaricom PLC [@SafaricomPLC] regional expansion to Ethiopia

✅ Commercial launch within 2022
✅ Discussions on partnerships with @ethiotelecom ongoing
✅ Contact center established

#SafaricomFYResults #MwangoInsights

Ethiopia: Macro Update

⬛ Political/Sector/ Regulatory
- Lifted state of emergency
- Partnership with @ethiotelecom

⬛Macro Economic
-8% projected real GDP
-Expected rebound in consumer spending
-Gradual rebound of capital inflows
-High inflation of 34.7%

Safaricom PLC Kenya [@SafaricomPLC] FY 2022 [YoY, KES]

EBIT: +18.8% to 114.3B
CAPEX: +12.5% to 39.3B

Safaricom Group [including @SafaricomET] FY 2022 [YoY, KES]

EBIT:13.5% to 109.1B
CAPEX: 42.4% to 49.8B

#SafaricomFYResults #MwangoInsights

Safaricom PLC [@SafaricomPLC] Group Perfomance FY22

⬛ Service Revenue: +12.3% to 281.1B
⬛EBIT:+13.5% to 109.1B
⬛CAPEX: +42.4% to 49.8B
⬛ Monthly Active Users: +4.3% to 32.8M

#SafaricomFYResults #MwangoInsights

Safaricom PLC [@SafaricomPLC] Service Revenue Drivers
✅ Mpesa: +30% YoY to 107.7B
✅Data Usage per subscriber: +60.5% YoY to 2.3GB
✅4G Devices: +29.3% YoY to 4.3m

#SafaricomFYResults #MwangoInsights

Safaricom PLC [@SafaricomPLC] New Growth Areas
⬛Digifarm Revenue:+50% to 400M
⬛IOT Revenue: +64.5% to 1.2M
⬛Content Revenue:+100% to 500M
⬛ICT Revenue: +29.3% to 400M

#SafaricomFYResults #MwangoInsights

Safaricom PLC [@SafaricomPLC] Ethiopia Financial Ambitions

-CAPEX: 5yr plan 🫴 $1.5B -2.0B
-Sites: 10yr plan 🫴 12k
-Breakeben: In Yr 4

Safaricom PLC [@SafaricomPLC] MPESA: Fintech Ecosystem Driving Growth

#SafaricomFYResults #MwangoInsights

Safaricom PLC [@SafaricomPLC] FY22

Service Revenue: Strong Recovery Driven by MPESA and Mobile App

#SafaricomFYResults #MwangoInsights

Safaricom PLC [@SafaricomPLC] FY 22 Perfomance Highlights

#SafaricomFYResults #MwangoInsights

Safaricom revenue profile [FY 21 vs FY 22]:

- M-pesa: 33.0% vs 38.3%.
- Mobile Data: 17.9% vs 17.2%.
- Voice outgoing: 33.0% vs 29.6%.
- FTTH: 1.4% vs 1.5%.
- Fixed 2.4% vs 2.5%.

#SafaricomFYResults #MwangoInsights

Safaricom PLC [@SafaricomPLC] FY23 Focus

"Accelerating new growth areas delivering superior customer experience"

-@PeterNdegwa_

Safaricom PLC FY23 Guidance

"@SafaricomPLC is Cognizant of the Geopolitical risk posed by Ukraine war and the current MTR tribunal hearing"

Safaricom PLC Kenya [KES]
EBIT: 102B - 123B
CAPEX: 40B - 43B

Safaricom Group [KES]
EBIT: 87B - 93B
CAPEX: 100-108B

#SafaricomFYResults

Safaricom [@SafaricomPLC] FY 22 Results [YoY, KES]:

- Service revenue: +12.3% to 281.1B
- Total revenue: +12.9% to 298B.
- PBT: +9.2% to 102.2B
- PAT: -1.7% to 67.4B
- EPS +1.8% to 1.74 [FY 21: 1.71]
- DPS +1.5% to 1.39 [FY21: 1.37]
- DPR: 79.8%
- M-pesa Revenue: +30% to 107.6B.

Safaricom [@SafaricomPLC] FY 2022 Highlights

Growth trajectories across various MPESA transaction:
#SafaricomFYResults #MwangoInsights