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KCB Q1 2014 Results
Rank: Elder Joined: 9/23/2010 Posts: 2,221 Location: Sundowner,Amboseli
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@guru, i speak as both an account holder(4 Accounts) and shareholder since September 2007. While i agree with you on the capital outlay part, i strongly disagree with you that it will be Equity's downfall for the simple reason that just as safaricom is a brand and has loyal customers, trust me Equity is even more to us. I cant wait for the roll out to get me an Equity number  And i'd love it more than my 0722 Safaricom line Lets talk a bit of numbers. As per the Economic Survey 2014 release, KES.914B was moved through mobile money last year, a 36% increase over 2012.Every shilling here attracts some transaction fee. Contrast this with their traditional source of revenue -Loans. In the same release, only KES.20.2B was borrowed from banks by Kenyans  (AS in all the banks had to share out this) Looks like a typo As a DFI student,you can see where the money is.That is what Dr.JM has seen. #Numbers don't lie! @SufficientlyP
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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Sufficiently Philanga....thropic wrote:As per the Economic Survey 2014 release, KES.914B was moved through mobile money last year, a 36% increase over 2012.Every shilling here attracts some transaction fee. Contrast this with their traditional source of revenue -Loans. In the same release, only KES.20.2B was borrowed from banks by Kenyans (AS in all the banks had to share out this) Looks like a typo So what does Dr. JM know that Airtel, Yu and Orange don't?? The kind of losses those guys make is not for the faint of heart... There is nothing new JM can offer to remove guys from safcom! Safcom is way more in the hearts of Kenyans than equity will ever hope to be! This is another Mkesho waiting to happen with consequences unimaginable! I think JM will be taught a serious lesson here if he pushes with this! Mark 12:29
Deuteronomy 4:16
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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guru267 wrote:With KCBs cost to income ratio falling Equity will not be catching up any time soon! Equity's adventure into the telco space will be their downfall! Whats all the positivity about?? The level of capital outlay needed will dent earnings for years to come.. Why invest in a sector where for the last 5 years only 1 player is profitable?? Just because telcos are making money in the finance space doesnt mean vice versa will work... What happened to core business focus?? The Kenyan telco market is a company graveyard! A graveyard that transacts over $19bn/year?? JM wouldn't mind being buried there any day.
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Rank: Elder Joined: 9/23/2010 Posts: 2,221 Location: Sundowner,Amboseli
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whiteowl wrote:guru267 wrote:With KCBs cost to income ratio falling Equity will not be catching up any time soon! Equity's adventure into the telco space will be their downfall! Whats all the positivity about?? The level of capital outlay needed will dent earnings for years to come.. Why invest in a sector where for the last 5 years only 1 player is profitable?? Just because telcos are making money in the finance space doesnt mean vice versa will work... What happened to core business focus?? The Kenyan telco market is a company graveyard! A graveyard that transacts over $19bn/year?? JM wouldn't mind being buried there any day. Amen @whiteowl @SufficientlyP
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Rank: Veteran Joined: 11/11/2006 Posts: 972 Location: Home
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1. Onto KCB, the 30% is more than i expected considering Southern Sudan and the going ons. 2. On Equity and the Telco business. It won't be easy. Having an MNVO licence means they'll be piggy backing on an existing network hence wiping margins and increasing overheads. YU tried to ride on Airtels network and look at where they ended. My 2 cents.
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Rank: New-farer Joined: 9/20/2010 Posts: 79
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a tight race of focus on core business growth against innovatiness nd risk taking.
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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whiteowl wrote:guru267 wrote:With KCBs cost to income ratio falling Equity will not be catching up any time soon! Equity's adventure into the telco space will be their downfall! Whats all the positivity about?? The level of capital outlay needed will dent earnings for years to come.. Why invest in a sector where for the last 5 years only 1 player is profitable?? Just because telcos are making money in the finance space doesnt mean vice versa will work... What happened to core business focus?? The Kenyan telco market is a company graveyard! A graveyard that transacts over $19bn/year?? JM wouldn't mind being buried there any day. He will be buried next to kencell, celtel, zain, Orange, Yu and Airtel! The undertaker (safaricom) will be happy to receive him! Mark 12:29
Deuteronomy 4:16
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Rank: New-farer Joined: 9/20/2010 Posts: 79
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@guru where nd when will the undertaker hold this big burial.
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Rank: Veteran Joined: 11/15/2013 Posts: 1,977 Location: Here
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guru267 wrote:whiteowl wrote:guru267 wrote:With KCBs cost to income ratio falling Equity will not be catching up any time soon! Equity's adventure into the telco space will be their downfall! Whats all the positivity about?? The level of capital outlay needed will dent earnings for years to come.. Why invest in a sector where for the last 5 years only 1 player is profitable?? Just because telcos are making money in the finance space doesnt mean vice versa will work... What happened to core business focus?? The Kenyan telco market is a company graveyard! A graveyard that transacts over $19bn/year?? JM wouldn't mind being buried there any day. He will be buried next to kencell, celtel, zain, Orange, Yu and Airtel! The undertaker (safaricom) will be happy to receive him! When EQT went to mama mbogas and wanjikus for accounts holding this was said,when it started giving loans at low interests to all classes with few procedures even off pay slip ones You said it will collapse,when it started operating agents you said it will collapse(other banks followed including KCB). EQT is not fighting to beat safaricom but to have a share of that sector (leyman) with much respect @guru247 of late you're misleading us financially Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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guru267 wrote:whiteowl wrote:guru267 wrote:With KCBs cost to income ratio falling Equity will not be catching up any time soon! Equity's adventure into the telco space will be their downfall! Whats all the positivity about?? The level of capital outlay needed will dent earnings for years to come.. Why invest in a sector where for the last 5 years only 1 player is profitable?? Just because telcos are making money in the finance space doesnt mean vice versa will work... What happened to core business focus?? The Kenyan telco market is a company graveyard! A graveyard that transacts over $19bn/year?? JM wouldn't mind being buried there any day. He will be buried next to kencell, celtel, zain, Orange, Yu and Airtel! The undertaker (safaricom) will be happy to receive him! Equity has a customer base of 8M+ and an agency network of 11k+ both of which the companies you've listed above never had when they were taking on safcom.I don't see the reason you're so sure of Equity's burial before the fight has even began. I'm not saying Equity will win outright but it has enough muscle to take on Safcom and stay in the fight for quite a long time.
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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Kalameni wrote:@guru where nd when will the undertaker hold this big burial. You seem to have missed the burial of kencell, zain, and celtel! The death of Yu has just happened recently so burial is to be scheduled! Orange is on the death bed with terminal illness Airtel has the same sickness but is still in denial.... Why would equity want to join this horror story?? Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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whiteowl wrote:Equity has a customer base of 8M+ and an agency network of 11k+ both of which the companies you've listed above never had when they were taking on safcom. You can even have the sun and the moon... Kenyans don't seem to ever want to leave safcom! Their loyalty for safcom flattens the loyalty for Equity! Despite being the most expensive network in ALL aspects the customer base is still going up! Ive watched Airtel put out offer after offer after offer on their mobile money to no avail whiteowl wrote:I'm not saying Equity will win outright but it has enough muscle to take on Safcom and stay in the fight for quite a long time.
Does Equity really have more muscle than Essar?? or Bharti?? or Orange?? Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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Boris Boyka wrote:Yousaid it will collapse,when it started operating agents you said it will collapse(other banks followed including KCB). If you feel like accusing me of something at least have the decency to quote me! Boris Byoka wrote:@guru247 of late you're misleadingus financially
GET THIS STRAIGHT... I am neither your spouse, nor your broker, nor your advisor, nor your parent, nor your sibling, nor your politician, nor your preacher! Mark 12:29
Deuteronomy 4:16
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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guru267 wrote:whiteowl wrote:Equity has a customer base of 8M+ and an agency network of 11k+ both of which the companies you've listed above never had when they were taking on safcom. You can even have the sun and the moon... Kenyans don't seem to ever want to leave safcom! Their loyalty for safcom flattens the loyalty for Equity! Despite being the most expensive network in ALL aspects the customer base is still going up! Ive watched Airtel put out offer after offer after offer on their mobile money to no avail whiteowl wrote:I'm not saying Equity will win outright but it has enough muscle to take on Safcom and stay in the fight for quite a long time.
Does Equity really have more muscle than Essar?? or Bharti?? or Orange?? Equity's customer base is also going up and it has a loyal customers who flocks there everyday and from a Wanjiku's point of view, it takes care of their needs.This lower pyramid is very crucial in the mobile money market.You also don't hear lots of complains of it being the "most expensive" unlike safcom. And you're yet to give a credible reason why its doomed for failure other than stating Essar's, Bharti and Orange failures which I dont think can be directly transposed to fit Equity's situation.
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Rank: Member Joined: 7/20/2011 Posts: 161 Location: nairobi
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guru267 wrote:Boris Boyka wrote:Yousaid it will collapse,when it started operating agents you said it will collapse(other banks followed including KCB). If you feel like accusing me of something at least have the decency to quote me! Boris Byoka wrote:@guru247 of late you're misleadingus financially
GET THIS STRAIGHT... I am neither your spouse, nor your broker, nor your advisor, nor your parent, nor your sibling, nor your politician, nor your preacher! I have never known guru to get emotional. Guess the word MILEADING got to him. I digress. Equity is not looking to be number one in telecos... They are looking to gain a foothold in the market... especially mobile money. Its common knowledge that Safaricom has been subotaging Eazzy247, equitys mobile service.... Patience. You cannot have a baby in one month by impregnating nine women....
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Rank: Elder Joined: 6/23/2009 Posts: 13,552 Location: nairobi
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guru267 wrote:Boris Boyka wrote:Yousaid it will collapse,when it started operating agents you said it will collapse(other banks followed including KCB). If you feel like accusing me of something at least have the decency to quote me! Boris Byoka wrote:@guru247 of late you're misleadingus financially
GET THIS STRAIGHT... I am neither your spouse, nor your broker, nor your advisor, nor your parent, nor your sibling, nor your politician, nor your preacher! admin yuko wapi. kuna mtu hapa anaongea kama malava.. btw, kencell, zain, celtel did not die.. walihamishwa tu kwa ward ya wanyonge wakabaatizwa airtel, yenye bado iko.. anywho, for sure; hio graveyard pia tutapata Home Afrika :) this is a good move by Equity the first mover. emotions tuache. even kcb the laggard has announced intent to apply for a similar mobile license
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Member Joined: 4/14/2011 Posts: 639
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While I believe there is too much hype about Equity mobile licence,the licence will definately go a long way in entrenching Equity into mobile money biz and definately eat into mpesa share.How equity use it in conjuction with their agency banking model wil determine their success.A product close to mshwari/mkesho wil also reduce safcom traffic.We can only wait as its just about to get interesting,JM is upto something
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Rank: New-farer Joined: 9/20/2010 Posts: 79
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@guru 267 seems to have written of memba even before start .Lets await Fy 2014 results nd see the impact.indeed its a risk for james but am sure they have consulted nd done a viability study.
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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Equity is NOT starting [as done by Safaricom, Kencell & Econet] nor buying a network [as done by Celtel, Zain, Airtel and Essar/Yu] but is going to buy minutes & data as well as lease some infrastructure from Airtel. The network would be managed by Airtel while Equity will sell airtime but it probably gets to keep a larger portion of the transaction fees. It's about mobile money fees [& cheap deposits] NOT selling airtime or data! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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obiero wrote:guru267 wrote:Boris Boyka wrote:Yousaid it will collapse,when it started operating agents you said it will collapse(other banks followed including KCB). If you feel like accusing me of something at least have the decency to quote me! Boris Byoka wrote:@guru247 of late you're misleadingus financially
GET THIS STRAIGHT... I am neither your spouse, nor your broker, nor your advisor, nor your parent, nor your sibling, nor your politician, nor your preacher! admin yuko wapi. kuna mtu hapa anaongea kama malava.. btw, kencell, zain, celtel did not die.. walihamishwa tu kwa ward ya wanyonge wakabaatizwa airtel, yenye bado iko.. anywho, for sure; hio graveyard pia tutapata Home Afrika :) this is a good move by Equity the first mover. emotions tuache. even kcb the laggard has announced intent to apply for a similar mobile license @obiero I concur. Today more money is transacted on mobile platforms than on the banking platform. Soon enough all banks will realize mobile is the way to go unless you want to watch your bank die a slow and painful death and by then Equity will be miles ahead.
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