Safaricom has proposed to pay shareholders a record Sh30.48 billion dividend this year, a Sh4.84 billion or 18.87 per cent growth over last year's Sh25.64 billion.
This is 80 per cent of Sh38.10 per cent profit for the full-year period ended March 31 compared to Sh31.87 billion it reported in the previous year.
The dominant mobile network operator's board, chaired by Nicholas Ng'ang'a, has recommended an increase in dividend payout to Sh0.76 from Sh0.64 paid last fiscal year, an increase of 18.75 per cent. Safari com, the most profitable company in East and Central Africa, has been increasing its dividend payout over the last five years, having risen from Sh0.20 in 2011-12 financial year.
The largest shareholder Vodafone of the UK with a 40 per cent stake in Safaricom will rake in Sh12.19 billion, followed by the government, which will earn Sh10.66 billion with its 35 per cent shareholding.
Minority shareholders, who own a quarter of the company, will pocket a cumulative Sh7.62 billion.
Chief executive Bob Collymore told an investor briefing yesterday morning an increase in revenues coupled with a drop in operating costs helped the company to sustain growth despite a tough operating environment in 2015.
Full-year net profit for the period ending March 31 jumped 19.55 per cent to Sh38.10 billion from Sh31.87 billion it reported in the previous year.
The net earnings surpassed the Sh36 billion the company had projected for the fiscal year 2015-16, helped by continued growth in M-Pesa and data services.
Total revenues rose 19.78 per cent to Sh195.68 billion up from Sh163.36 billion a year earlier.
Mobile data posted the highest growth of 42.71 per cent to Sh21.15 billion, followed by M-Pesa and fixed service revenues that rose 27.71 per cent and 22.04 per cent, respectively, to Sh41.50 billion and Sh3.82 billion.
Voice revenues, however, continued to account for the largest share of the revenues, although at a slower growth rate of 3.93 per cent to Sh90.80 billion for the year ended March 31.
Income from SMS services climbed 10.59 per cent to Sh17.33 billion.
Direct costs rose by 9.86 per cent to Sh62.30 billion during the review period.
Collymore said net earnings before interest expenses, taxes, depreciation and amortisation is expected to be in the range of Sh92 billion this financial year that ends March next year. Capital expenditure will range between Sh32 billion and Sh33 billion, he added.
“Data remains our fastest growing revenue stream and we are focused on growing it further through accelerating smartphone penetration, growing 3G and 4G users and driving adoption of data bundles,” Collymore said.