Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Kenya's Safaricom sees lower annual core earnings on pandemic hit

11/09/2020 | 02:23am EST
A man walks past Safaricom shop, a mobile telecommunication provider in Kenya's capital Nairobi

NAIROBI (Reuters) - Safaricom, Kenya's biggest telecoms operator, said on Monday it expects core earnings to drop by 7-10.5% in the year ending March 2021, hurt by the impact of the coronavirus crisis.

The firm, which is part owned by Britain's Vodafone and South Africa's Vodacom, posted a 4.8% decline in its first-half service revenue to 118.41 billion shillings ($1.09 billion).

Full-year core earnings, or earnings before interest and taxes, are expected to come in at 91-94 billion shillings, a 7-10.5% drop from the prior year, said Chief Executive Officer Peter Ndegwa.

The first-half decline was driven by a drop in revenue from its mobile financial services, M-Pesa, and voice calls.

In March, Safaricom eliminated charges on peer-to-peer transfers of amounts below 1,000 shillings to facilitate cashless transactions and help curb the spread of the coronavirus through banknotes, cutting its revenue from the service.

Revenue from provision of internet services increased, but were not sufficient to offset the drop in M-Pesa and voice calls, the company said at an online investor briefing.

($1 = 108.9000 Kenyan shillings)

(Editing by Sherry Jacob-Phillips)

By Duncan Miriri

© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
SAFARICOM PLC -0.55% 36.35 End-of-day quote.6.13%
VODACOM GROUP LIMITED -0.65% 123.19 End-of-day quote.-0.96%
VODAFONE GROUP PLC 0.49% 127 Delayed Quote.4.50%
Latest news "Economy & Forex"
01:38pBackers of IP waiver for COVID-19 drugs make fresh push at WTO
01:38pOil gains on stimulus optimism ahead of Biden inauguration
01:36pU.S. Treasury nominee Yellen says China guilty of 'horrendous' rights abuses
01:36pBoE's Haldane sees rapid economic recovery from COVID hit
01:33pANALYSIS : Mexican president's energy reform threat faces U.S. reality check
01:30pLondon Stock Exchange set to close Refinitiv deal on Jan. 29
01:28pU.S. court deals final blow to Trump EPA's clean power rule replacement
01:26pNNSA NATIONAL NUCLEAR SECURITY ADMINISTRATION : to hold two virtual public scoping meetings regarding an Environmental Impact Statement for the Surplus Plutonium Disposition Program
01:25pYellen says would appoint senior climate official at Treasury
01:23pAgro-export companies in Argentina 'concerned' by truckers' protest
Latest news "Economy & Forex"