Safaricom Plc chief executive Peter Ndegwa announcing Sh74.7 billion net profit for the full year ended March 2020 on April 29. PHOTO | COURTESY Safaricom is promising to retain its annual capital spending in rolling out new products and services to address evolving needs of society. This as it aims to build on its Ksh73.66 billion net profit.
The telco is preparing for its virtual annual general meeting (AGM) on July 31, when shareholders will get an opportunity to know the plans for the current financial year.
Safaricom’s net profit grew by 17.9 percent to Sh73.66 billion in the year ended March 2020 as it ushered in a new CEO, Peter Ndegwa, the first Kenyan to lead the business.
Mr Ndegwa says that consistent focus on investment in the company’s infrastructure and innovative platforms and services has been the key driver in strong performance over the year, a feat he wants to build on.
“We will continue to develop new digital products and services that solve societal challenges in agriculture, health, education and essential services,” says Mr Ndegwa.
“Leveraging the power of partnerships and our digital platforms, we will drive affordability and innovation in mobile communication, financial services and enterprise solutions, while maintaining our leadership in the best network handset.”
The telco has been automating internal and customer-facing operations and enhancing use of artificial intelligence, all which Mr Ndegwa will be taking to the next level.
Safaricom has been consistently growing profits for the last eight years, with the net earnings having grown nearly six times when compared with Sh12.63 billion profit in 2012.
The company’s capital expenditure has been averaging Sh36 billion to Sh40 billion, giving room for the company to roll out new products to deliver fresh revenue streams and retain an edge over its competitors.
The AGM is being held in the period of Covid-19, which has brought to the fore the importance of technology.
Safaricom will be seeking to amend its articles of association to allow for electronic AGM or a hybrid of electronic and physical meetings going forward.This will eliminate the need for getting a special window to hold virtual meetings if it opts to. The current company Act does not have a clause on virtual meetings. Listed firms have to seek a special window for such meetings.Shareholders will use the meeting to approve a final dividend of Sh1.40 per share, up from Sh1.25 per share paid in the previous year. The pay-out will […]
