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Safaricom HY2013 Profit before tax up 113%
dunkang
#41 Posted : Friday, November 09, 2012 1:40:27 PM
Rank: Elder

Joined: 6/2/2011
Posts: 4,824
Location: -1.2107, 36.8831
Pesa Nane wrote:
2012 wrote:
This is good for scom but to be honest I can't see this lasting into the future unless they come up with other revolutionary products like Mpesa. Right now they are the most expensive network, all the other operators and independent companies have their own 'mpesa', they are losing technical personel. I just can't see this very bright future yet but it's probably just me.


Seconded!! Iam also celebrating Laughing out loudly but a model based singularly on over-pricing to make profit is not sustainable. Being pioneers, with widest coverage, biggest market share etc they should be beating competing to submission on pricing and still manage profits. Innovation, innovation, innovation!!


I would like to see who the competitors will be in 2015. Clearly, Yu is on the verge of exiting the Market (they have the CRAPPIEST service). Airtel minute factory has failed badly in Kenya. Orange is on the way to been much more expensive than SAFCOM.

Here is a list of average calling rates around Africa in Kenyan Shillings;

i. Angola - KES48
ii. Zambia - KES28
iii. Uganda - KES18
iv. Tanzania - KES5

Airtel is using its profits in other countries (like Malawi and Nigeria) to sell airtime below cost in Kenya just to push out the smaller operators until its just them and Safaricom. It would then raise rates to profitable levels and slowly push for more market share from Safarcom. And this is failing in KENYA.
Receive with simplicity everything that happens to you.” ― Rashi

Impunity
#42 Posted : Friday, November 09, 2012 2:31:53 PM
Rank: Elder

Joined: 3/2/2009
Posts: 26,331
Location: Masada
dunkang wrote:
Pesa Nane wrote:
2012 wrote:
This is good for scom but to be honest I can't see this lasting into the future unless they come up with other revolutionary products like Mpesa. Right now they are the most expensive network, all the other operators and independent companies have their own 'mpesa', they are losing technical personel. I just can't see this very bright future yet but it's probably just me.


Seconded!! Iam also celebrating Laughing out loudly but a model based singularly on over-pricing to make profit is not sustainable. Being pioneers, with widest coverage, biggest market share etc they should be beating competing to submission on pricing and still manage profits. Innovation, innovation, innovation!!


I would like to see who the competitors will be in 2015. Clearly, Yu is on the verge of exiting the Market (they have the CRAPPIEST service). Airtel minute factory has failed badly in Kenya. Orange is on the way to been much more expensive than SAFCOM.

Here is a list of average calling rates around Africa in Kenyan Shillings;

i. Angola - KES48
ii. Zambia - KES28
iii. Uganda - KES18
iv. Tanzania - KES5

Airtel is using its profits in other countries (like Malawi and Nigeria) to sell airtime below cost in Kenya just to push out the smaller operators until its just them and Safaricom. It would then raise rates to profitable levels and slowly push for more market share from Safarcom. And this is failing in KENYA.


Why is it so cheap in TZ?When is the top provider there?

And if Airtel is using your alleged strategy then that's a unique style which may work for them in medium to long tern (2015 and beyond!)
Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.

murchr
#43 Posted : Friday, November 09, 2012 3:39:06 PM
Rank: Elder

Joined: 2/26/2012
Posts: 15,980
The reason why Airtel will never make it in Kenya is because they have never succeeded to associate themselves with Kenyaness...thats where safcom has won. Safcom subscribers are so loyal.

The telcom industry is changing fast, voice will no longer be the money maker so those focusing on the low end customer to keep calling so that they make money are going sink very deep.
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
hisah
#44 Posted : Friday, November 09, 2012 3:46:54 PM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
At day's finish 4.95/- trades which is 11.24% for the day. VWAP will close at 4.80/- (7.87% up).

I can't recall anytime since IPO listing when this stock rallied by double digit % gain...! I'm soooooo tempted to sell some.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
obiero
#45 Posted : Friday, November 09, 2012 5:06:41 PM
Rank: Elder

Joined: 6/23/2009
Posts: 14,238
Location: nairobi
hisah wrote:
At day's finish 4.95/- trades which is 11.24% for the day. VWAP will close at 4.80/- (7.87% up).

I can't recall anytime since IPO listing when this stock rallied by double digit % gain...! I'm soooooo tempted to sell some.

Problem with Safaricom is not the company. It is the share. It was overpriced upon IPO. KES 5 is too expensive. I will definitely sell on KES 5.50 or higher.

mwekez@ji
#46 Posted : Friday, November 09, 2012 6:55:57 PM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
H1 EPS, 0.19 + H2 EPS, 0.25 = FY EPS 0.44 #Record performance
mlennyma
#47 Posted : Friday, November 09, 2012 7:51:04 PM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
My bet is that safcom will be flat or in loss territory next financial year,it now looks rossy because we are comparing with last years worst ever perfomance...above 5.50 is a sell to me.
"Don't let the fear of losing be greater than the excitement of winning."
dunkang
#48 Posted : Friday, November 09, 2012 8:28:27 PM
Rank: Elder

Joined: 6/2/2011
Posts: 4,824
Location: -1.2107, 36.8831
mlennyma wrote:
My bet is that safcom will be flat or in loss territory next financial year,it now looks rossy because we are comparing with last years worst ever perfomance...above 5.50 is a sell to me.


For the FY2013 (i.e. April 2012- March 2013), the HY2013 presentation clearly indicated that its expected "lower double digit growth" .

From what i understand from that statement is that they expect anything between 10-30% growth, compared to FY2012.

Or what does Lower Double Digit mean? Help me Wazuans.
Receive with simplicity everything that happens to you.” ― Rashi

Aguytrying
#49 Posted : Friday, November 09, 2012 8:29:20 PM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
surely anyone who bought at 3.00. the higher it goes the more likely your (already large)paper profit increase is coming to an end.

who last year could have dared to think safcom would touch 5.00 between then and 2013? now even 5.50 is in sight. unbelievable.
The investor's chief problem - and even his worst enemy - is likely to be himself
hisah
#50 Posted : Saturday, November 10, 2012 7:06:53 AM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
obiero wrote:
hisah wrote:
At day's finish 4.95/- trades which is 11.24% for the day. VWAP will close at 4.80/- (7.87% up).

I can't recall anytime since IPO listing when this stock rallied by double digit % gain...! I'm soooooo tempted to sell some.

Problem with Safaricom is not the company. It is the share. It was overpriced upon IPO. KES 5 is too expensive. I will definitely sell on KES 5.50 or higher.

I have never come across a cheap IPO. The price is always at a premium. The IPO game setters need to be paid you know...

$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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