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Safaricom HY 2014 results announcement
Rank: Elder Joined: 9/23/2010 Posts: 2,221 Location: Sundowner,Amboseli
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Ericsson wrote:KCB is really catching up.The gap between the two is now at ksh.1.3 billion going by the half year results.
Mpesa belongs to Ivy League my friend. #SimbaBelongsToLigiNdogo @SufficientlyP
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Rank: Elder Joined: 9/23/2010 Posts: 2,221 Location: Sundowner,Amboseli
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muganda wrote:Will the elephant outrun all the other animals in the stock exchange?
Can't wait, 40kph top speed   He must be pinching himself in disbelief seeing mpesa at 10 Remember he was looking at 7.50 by year close? @SufficientlyP
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Rank: Elder Joined: 9/15/2006 Posts: 3,905
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I think I should take a moment to acknowledge  the genius in:49% growth in SMS revenue 43% growth in Mobile Data and the stable :20% growth in M-Pesa not to mention the helluva:+399 basis points increase in EBITDA margin 50% increase in cash and cash equivalents Mind you the net income growth of 44.9% includes a one-off impairment charge of 2.1b https://www.nse.co.ke/listed-com...year-30th-september-2013
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Rank: Elder Joined: 9/23/2010 Posts: 2,221 Location: Sundowner,Amboseli
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PKoli wrote:young wrote:
My contribution yesterday on Safaricom in another thread
Safaricom is now a super brand, the most
highly capitalized stock with much leg room
for growth, the toast of foreigners. While
locals are selling foreigners including my tiny
self are taking positions for long term benefits.
You will see Mpesa at 10 this year, 15 in
2014 and even more growth a few years after.
It is a counter you can buy and go to sleep
at least in the next 3 years whether in terms of
income for long termers or capital gain for
speculators.
My advise to speculators is do not
jump ship fast, realise the full potentials
before taking profits, a bountiful one.
It will be interesting within 2 years to go
from say 5 bob in early 2013 to 15 bob in
late 2014 than to jump now from 5 to 9.7
You guys are always in a hurry to take
profits , the typical wananchi way to jump
to another counter.
Spot on mzee Young. This giant is still growing @SufficientlyP
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Rank: Elder Joined: 11/28/2006 Posts: 1,799
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and then immediately after announcement MPESA system goes down!!!!!
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Rank: New-farer Joined: 10/3/2013 Posts: 15
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Ericsson wrote:@Pkoli;The investment in fiber is going to slow down the growth rate of safaricom profits due to increase in operational expenditure i.e cost of maintaining the fiber.
The current growth rate is as a result of the second half of 2012/2013 momentum.
Also the following was the comment going forward;
Improved guidance for the full year
Forecasting low double digit growth in total revenue
Expect to maintain the current EBITDA margin
As for the share price double digit not yet as the current share price has already taken into account the recently announced results.
In reality, on completing the fiber project saf will be saving over 3b in transmission costs annually, not forgetting the income from bandwidth sales to other providers.
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Rank: Elder Joined: 9/15/2006 Posts: 3,905
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Rank: Elder Joined: 6/20/2007 Posts: 2,037 Location: Lagos, Nigeria
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Sufficiently Philanga....thropic wrote:Ericsson wrote:KCB is really catching up.The gap between the two is now at ksh.1.3 billion going by the half year results.
Mpesa belongs to Ivy League my friend. #SimbaBelongsToLigiNdogo It can go either way, but I give it to Safaricom The wazua spirit as members is to educate and inform and learn from others within the limit of what we know in any chosen area irrespective of our differences in tribes, nationalities, etc. .
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Ericsson wrote:Competitors to Safaricom died kitambo sana.
The only competition they have is inflation and if Kenyans change their spending habits away from communication and internet Am saying it again, competition is EABL and KCB. In this aspect, will Kenians buy talk time(credit, units) or buy a beer? Will they transact on their MPESA/ MSHWARI A/c or on KCB? "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
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Rank: Veteran Joined: 3/26/2012 Posts: 985 Location: Dar es salaam,Tanzania
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"Outside South Africa, equity markets are relatively small and illiquid. Key assets remain in state and private hands and are usually unquoted. Regulation of shareholder rights is often incomplete. In a number of countries, political instability also represents a threat." Liquidity outside South Africa is certainly an issue, especially for funds of any significant size. Three years ago, fund management group New Star was forced to close its Africa fund because, it said, it was too difficult to invest in many of the markets it had hoped to target. However, liquidity will improve as investor interest grows. Nigeria, the second-biggest market after South Africa, may only have 5% of the latter's trading volumes today, but banking reforms and monetary policy initiatives are attracting more investors. In agriculturally oriented Kenya, which is the next biggest market, a return to political stability following the unrest of 2007 is encouraging investors, particularly as the access it provides to countries such as Tanzania and Ethiopia is so valuable.
“The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.”
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Rank: Elder Joined: 2/10/2007 Posts: 1,587
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Ericsson wrote:@Pkoli;The investment in fiber is going to slow down the growth rate of safaricom profits due to increase in operational expenditure i.e cost of maintaining the fiber.
The current growth rate is as a result of the second half of 2012/2013 momentum.
Also the following was the comment going forward;
Improved guidance for the full year
Forecasting low double digit growth in total revenue
Expect to maintain the current EBITDA margin
As for the share price double digit not yet as the current share price has already taken into account the recently announced results.
What is the capex on fibre optic?
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Rank: Hello Joined: 10/10/2013 Posts: 5
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The Capex in fibre is far higher than MW; but the opex in fibre is much lower than MW; and service gurantee and continuity much higher. So opex is expected to come down as MW is retired.
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Rank: Veteran Joined: 3/26/2012 Posts: 985 Location: Dar es salaam,Tanzania
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follow the discussions on the results on CNBC africa https://twitter.com/eyeonkenya
“The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.”
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Rank: Member Joined: 6/21/2010 Posts: 514 Location: Nairobi
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Ericsson wrote:@Pkoli;The investment in fiber is going to slow down the growth rate of safaricom profits due to increase in operational expenditure i.e cost of maintaining the fiber.
The current growth rate is as a result of the second half of 2012/2013 momentum.
Also the following was the comment going forward;
Improved guidance for the full year
Forecasting low double digit growth in total revenue
Expect to maintain the current EBITDA margin
As for the share price double digit not yet as the current share price has already taken into account the recently announced results.
I beg to differ since they are going to have an almost commensurate growth in income within the internet provision platform and value addition services platform. My take is they'll drive their service provision into the corporate sector with the sole purpose of providing shared services to SMEs and some large body corporates. What they are basically doing now within the cloud computing platform is "price and product discovery" and the moment they hit the right cord then the rest will be all about the paper. 'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
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Rank: Member Joined: 6/21/2010 Posts: 514 Location: Nairobi
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The other important element that Safaricom has shown us as consumers and not investors is that Banks are actually ripping us off big time. For instance KCB (the Bank not Group) had an income of 23.48B (Gross Interest + Non operating income) with a PBT of 9.1B within half year as compared to safcom's 69.2B income bringing in 15.9B PBT. Simply said if KCB would be making the same income as Safaricom, they would be raking in a good half year PBT of around 26.91B. 'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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@Pkoli;Capital expenditure they have put at ksh.27 billion @Mie;Opex on fiber is higher than in microwave because of fiber cuts that occur due to vandalism,sabotage and other reasons.Other reasons for higher opex in fiber is due to road construction/expansion which necessitates relocation of the fiber.Road contractors damage the fiber here and there without care. Ask anybody in Telecom kenya/Orange or any other fiber infrastructure company and they will tell you. If they are able to create additional demand for their services and customers willing to pay then they acan mitigate this Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 3/26/2012 Posts: 1,182
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Ericsson wrote:@Pkoli;Capital expenditure they have put at ksh.27 billion
@Mie;Opex on fiber is higher than in microwave because of fiber cuts that occur due to vandalism,sabotage and other reasons.Other reasons for higher opex in fiber is due to road construction/expansion which necessitates relocation of the fiber.Road contractors damage the fiber here and there without care.
Ask anybody in Telecom kenya/Orange or any other fiber infrastructure company and they will tell you.
If they are able to create additional demand for their services and customers willing to pay then they acan mitigate this How many times does that happen in let's say a year?
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Anyone dismissing this play....http://www.businessdailyafrica.com/Matatus-sign-to-M-Pesa-ahead-of-cash-fare-ban/-/539552/2132510/-/12ollnf/-/index.html http://www.the-star.co.k...ked-over-sh30m-kcpe-smss"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
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Rank: Member Joined: 6/26/2008 Posts: 384
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Telecommunications firm Safaricom is angling for the highly untapped insurance market with a low cost health cover. On Wednesday, the operator in partnership with investment firm Britam and Changamka Micro Insurance unveiled a health cover targeting to attract a million customers in the next one year. Linda Jamii – which has been running on a pilot basis in Nairobi for the last year – targets more than 38 million Kenyans that do not have health insurance and is expected to be a significant revenue stream for the two firms in the coming years.
Read more at: http://www.standardmedia...rance-to-boost-revenues
Thoughts?
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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hisah wrote:Wow! This elephant has some distance to sprint!
Net financing cost down by 72.4% as it matches towards the debt free goal of 2015.
Cashflow up 167% (13.7B) - big bazooka stash that will worry the competition as well make investors demand a div pay hike.
Same acceleration growth should see final EPS close 56 - 60cts. With the current PER of 21 that should see the price scale towards 12 - 12.50. From today's close at 9.65/- that's a 29% upside towards 12.50 by June 2014. Still more headroom to come.
Post #15 on November 05, 2013 after the H1 results release.
My 12.50 target has been blown out before June 2014... The bulls are too aggressive  $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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