Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nairobi Stock Exchange  >  Safaricom PLC    SCOM   KE1000001402

SAFARICOM PLC

(SCOM)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector news
The feature you requested does not exist. However, we suggest the following feature:

Kenya Airways to lay off staff, reduce network and assets -CEO

share with twitter share with LinkedIn share with facebook
07/06/2020 | 02:36am EDT
FILE PHOTO: Kenyan Airways planes are parked at the Jomo Kenyatta International Airport in Nairobi

By Duncan Miriri

Kenya Airways will lay off an unspecified number of workers, reduce its network and also get rid of some assets due to the coronavirus crisis, its chief executive said in an internal memo seen by Reuters.

The coronavirus crisis has hit the global aviation industry hard, with African carriers alone expected to lose $6 billion this year in revenue.

"Our short and medium-term projections indicate that we must inevitably reduce our operations before we begin to scale up again," Allan Kilavuka wrote in the memo dated July 3, adding that the exercise will be completed by Sept. 30.

The carrier, in which Air France-KLM holds a small stake, was struggling long before the outbreak, posting 2019 losses of almost 13 billion shillings ($122.2 million).

It cut salaries by as much as 80% when the crisis started, and sought a government bailout to help it take care of running costs after it grounded its planes when Kenya stopped commercial passenger flights to curb the spread of the virus.

The government declined to bail it out, opting to press ahead with a pre-pandemic plan to nationalise the carrier, part of wider reforms of the East African nation's aviation sector.

Michael Joseph, the airline's chairman, said the decision to lay off workers and reduce operations was not informed by the failure to secure a bailout.

"We have to face the fact that demand for air travel is going to be reduced significantly for the next 2-3 years," Joseph told Reuters on Monday, adding that other carriers were taking similar actions.

"We have delayed taking this action for too long."

On Friday, the Nairobi bourse suspended trading of Kenya Airways shares for three months, citing the government's plan to restructure the carrier, after it submitted to parliament a bill on the nationalisation of the airline.

($1 = 106.4000 Kenyan shillings)

(Editing by Emelia Sithole-Matarise)

Stocks mentioned in the article
ChangeLast1st jan.
AIR FRANCE-KLM -1.14% 4.16 Real-time Quote.-57.60%
SAFARICOM PLC -1.85% 29.1 End-of-day quote.-7.62%
share with twitter share with LinkedIn share with facebook
Latest news on SAFARICOM PLC
07/06Kenya Airways to lay off staff, reduce network and assets -CEO
RE
06/26SAFARICOM : Chapa Dimba Organizers Exploring August as Possible Resumption Date
AQ
06/26Kenya Airways estimates coronavirus revenue loss at $100 mln -CEO
RE
06/18SAFARICOM : Launches Lipa Na M-Pesa Business App
AQ
06/15Credit from Safaricom's farming app sows seeds of change in Kenya
RE
06/11SAFARICOM : Chapa Dimba Na Safaricom All Star Spain Trip to Be Rescheduled
AQ
06/10SAFARICOM : CFO Sateesh Kamath Moves to Vodafone Business
AQ
06/01SAFARICOM : Closes TRM Shop After Staff Member Tested Positive for COVID-19
AQ
05/21Vodacom South Africa now a standalone business
RE
05/19SAFARICOM : Despite COVID-19 Halt Chapa Dimba Na Safaricom Still Looks to Impact..
AQ
More news
Financials
Sales 2021 271 B 2 538 M 2 538 M
Net income 2021 73 999 M 694 M 694 M
Net cash 2021 35 523 M 333 M 333 M
P/E ratio 2021 15,8x
Yield 2021 5,10%
Capitalization 1 166 B 10 934 M 10 932 M
EV / Sales 2020
EV / Sales 2021 4,18x
Nbr of Employees 4 523
Free-Float 25,1%
Chart SAFARICOM PLC
Duration : Period :
Safaricom PLC Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends SAFARICOM PLC
Short TermMid-TermLong Term
TrendsNeutralNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 11
Average target price 32,08 KES
Last Close Price 29,10 KES
Spread / Highest target 27,1%
Spread / Average Target 10,2%
Spread / Lowest Target -8,93%
EPS Revisions
Managers
NameTitle
Peter Ndegwa Chief Executive Officer & Director
Nicholas Nganga Chairman
Steve Okeyo Director-Regional Sales & Operations
Govinder Sateesh Kamath Chief Financial Officer
Thibaud Rerolle Chief Technology Officer
Sector and Competitors
1st jan.Capitalization (M$)
SAFARICOM PLC-7.62%11 141
SOFTBANK CORP.-4.97%61 180
BHARTI AIRTEL LIMITED26.48%42 129
CELLNEX TELECOM45.69%24 345
TELE2 AB (PUBL)-9.53%9 148
DIGI.COM-2.69%7 889