Safaricom assets explained verses its growth performance
Safaricom PLC is a Kenyan telecommunications company that offers mobile voice and data services, as well as mobile money transfer services via its M-PESA platform. In this analysis, we will look at Safaricom's assets and its recent growth.
Safaricom PLC's assets
Safaricom's total assets were KES 260.59 billion ($2.4 billion USD) as of March 2023. The assets of the company are primarily made up of property, plant, and equipment, as well as intangible assets like goodwill and software. Safaricom's tangible assets totaled KES 110.49 billion ($1.01 billion USD), while its intangible assets totaled KES 63.33 billion ($579.43 million USD).
Safaricom's significant investment in network infrastructure has contributed to asset growth. The company has made significant investments in its 4G network infrastructure, which has aided in the growth of its customer base and revenue.
Safaricom PLC expands
Safaricom has grown significantly in recent years. Revenue for the company has increased from KES 163.39 billion ($1.50 billion USD) in 2017 to KES 250.35 billion ($2.29 billion USD) in 2023. This expansion has been fueled by the company's emphasis on expanding its customer base, expanding network coverage, and developing new products and services.
Safaricom's M-PESA mobile money transfer service has been a major contributor to the company's expansion. With over 29 million customers and 500,000 agents across the country, the service has become a popular means of payment and money transfer in Kenya. M-PESA processed over KES 18.5 trillion ($169.4 billion USD) in transactions in 2020, significantly contributing to Safaricom's revenues.
Safaricom has also made significant investments in its network infrastructure, including its 4G network, which has aided in the growth of its customer base and revenues. In addition, the company has created new products and services, such as the Safaricom Home Fibre service, which provides high-speed internet access to homes and businesses.
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Safaricom has also expanded its operations outside of Kenya, acquiring a 35% stake in Vodafone Ghana in 2019. This acquisition gave Safaricom access to a new market and contributed to the diversification of the company's revenue streams.
Conclusion
Safaricom's substantial investment in network infrastructure has contributed to the expansion of its assets, which now total KES 260.59 billion ($2.4 billion USD). Revenue has increased from KES 163.39 billion ($1.50 billion USD) in 2017 to KES 250.35 billion ($2.29 billion USD) in 2023, thanks to the company's focus on expanding its customer base, expanding network coverage, and developing new products and services.
With over 29 million customers and 500,000 agents across the country, the company's M-PESA mobile money transfer service has been a key driver of growth. With the acquisition of a 35% stake in Vodafone Ghana in 2019, Safaricom expanded beyond Kenya, gaining access to a new market and diversifying its revenue streams.
Overall, Safaricom's recent growth has been impressive, and the company has established itself as a leader in Africa's telecommunications industry. Safaricom is well-positioned to continue its growth trajectory in the coming years, thanks to its emphasis on innovation and customer service.