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Safaricom FY 2016 results net profit up 19.6%
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murchr
#1 Posted : Wednesday, May 11, 2016 8:17:04 AM
Rank: Elder

Joined: 2/26/2012
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8m smart phone users
"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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murchr
#2 Posted : Wednesday, May 11, 2016 8:29:10 AM
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Joined: 2/26/2012
Posts: 15,980
"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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murchr
#3 Posted : Wednesday, May 11, 2016 8:36:25 AM
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Joined: 2/26/2012
Posts: 15,980




"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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  | | Edit by user: Wednesday, May 11, 2016 9:03 AM | Reason: Not specified
muganda
#4 Posted : Wednesday, May 11, 2016 9:05:19 AM
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Joined: 9/15/2006
Posts: 3,907
@bobCollymore
Another year of strong growth across all metrics. Revenues up 13.8%. EBITDA 44.5%. Net income up 19.6% #SafaricomFYResults

"We are issuing 1 Loan every second via M~Shwari and @KCBGroup M~Pesa"
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jerry
#5 Posted : Wednesday, May 11, 2016 9:16:52 AM
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Joined: 9/29/2006
Posts: 2,570
murchr wrote:


This is the proof I've been waiting for that MPESA is trully a bank.
The opposite of courage is not cowardice, it's conformity.
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  | | Edit by moderator: Wednesday, May 11, 2016 9:23 AM | Reason: quote shortened
muganda
#6 Posted : Wednesday, May 11, 2016 9:22:59 AM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
Time to digest the numbers in full

At first glance seems equal growth as last year, stand out being MPesa Other categors (loans, Lipa Na, Sportspesa). Price seems to have roundly baked in the results.


FY16 Results Presentation
FY16 Press Commentary
FY16 Press Release


Commendable effort by the team 4th year in a row.

At current prices, Safaricom now has a P/E of ~18 and is growing EBITDA at about 16.7% for two years now. This year has the lowest growth since 2012. Thus the law of large numbers will soon give more pressure coupled with the hubris that normally follows years of outperformance.

I obviously have to ignore the large depreciation, impairment & amortisation line, which just like in the case of banks can be over/under provided for giving a shine to net profit growth
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watesh
#7 Posted : Wednesday, May 11, 2016 9:53:50 AM
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Joined: 8/10/2014
Posts: 992
Location: Kenya
Mpesa making more money than 80% of the banks in Kenya. The only way banks can steal some tiny market share in the money transfer business is maybe create a way they can send money to each other via their mobile apps and have real time settlement.
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Impunity
#8 Posted : Wednesday, May 11, 2016 1:16:46 PM
Rank: Elder

Joined: 3/2/2009
Posts: 26,331
Location: Masada
watesh wrote:
Mpesa making more money than 80% of the banks in Kenya. The only way banks can steal some tiny market share in the money transfer business is maybe create a way they can send money to each other via their mobile apps and have real time settlement.


True.

Coz as it is now, we have to channle money from bank A to Mpesa then to bank B.

Few banks have direct mibile money apps, and the cost levied is still out of this waold.
Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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jgithige
#9 Posted : Wednesday, May 11, 2016 1:29:28 PM
Rank: Member

Joined: 7/10/2014
Posts: 145
Location: Nairobi
Safaricom needs a serious competitor to bring the cost of mpesa rates down. Similarly to what happened in call rates.
"Blowing out someone else candle won't make yours shine brighter"-Anonymous
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Aguytrying
#10 Posted : Wednesday, May 11, 2016 1:43:44 PM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
Impunity wrote:
watesh wrote:
Mpesa making more money than 80% of the banks in Kenya. The only way banks can steal some tiny market share in the money transfer business is maybe create a way they can send money to each other via their mobile apps and have real time settlement.


True.

Coz as it is now, we have to channle money from bank A to Mpesa then to bank B.

Few banks have direct mibile money apps, and the cost levied is still out of this waold.


The banks had the idea to do this last year, then it all went quiet
The investor's chief problem - and even his worst enemy - is likely to be himself
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Impunity
#11 Posted : Wednesday, May 11, 2016 1:43:48 PM
Rank: Elder

Joined: 3/2/2009
Posts: 26,331
Location: Masada
jgithige wrote:
Safaricom needs a serious competitor to bring the cost of mpesa rates down. Similarly to what happened in call rates.


Me thinks the rates that needed to be urgently checked and brought down ni za data bandoz.
That 4G thing inanyonya kweli kweli kushinda wale poko za River road.

Try downloading a 4 minute youtube video and before you know it 100MB imemozwo tu like that.
Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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ngapat
#12 Posted : Wednesday, May 11, 2016 2:31:09 PM
Rank: Veteran

Joined: 12/11/2006
Posts: 930
Airtel and orange need to invest in their infrastructure first before engaging in price wars. I'm sure when it comes to data, there is no loyalty to certain telcoms or providers but cost,speed and reliability is what matters.
“Invest in yourself. Your career is the engine of your wealth.”
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Ebenyo
#13 Posted : Wednesday, May 11, 2016 2:56:25 PM
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Joined: 4/4/2016
Posts: 2,016
Location: Kitale
what about the dividends?
Towards the goal of financial freedom
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Impunity
#14 Posted : Wednesday, May 11, 2016 2:59:21 PM
Rank: Elder

Joined: 3/2/2009
Posts: 26,331
Location: Masada
Ebenyo wrote:
what about the dividends?


What about them?
Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Impunity
#15 Posted : Wednesday, May 11, 2016 3:02:26 PM
Rank: Elder

Joined: 3/2/2009
Posts: 26,331
Location: Masada
ngapat wrote:
Airtel and orange need to invest in their infrastructure first before engaging in price wars. I'm sure when it comes to data, there is no loyalty to certain telcoms or providers but cost,speed and reliability is what matters.


True, I even bought Orange modem but the speed was pathetic, I ended up using my expe but fast sufferingcom.
Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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