Genghis Capital - Safaricom Ltd (SCOM) Safaricom Plc (NSE: SCOM) FY18 Earnings Note

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Genghis Capital

Safaricom Plc (NSE: SCOM) FY18 Earnings Note

Safaricom Plc (NSE: SCOM) reported a 14.1% y/y growth in FY18 EPS to KES 1.38, slightly above our FY18E estimates of KES 1.35. Similarly, falling in line with our estimates was operating earnings (EBIT) which stood at KES 79.2Bn against our estimated EBIT of KES 79.0Bn. Total revenue rose 9.8% y/y to KES 234Bn against KES 237Bn in-house estimates. This was supported by increased usage across all revenue segments (voice 2.3%, SMS 6.2%, mobile data 24.1%, fixed data 27.3% and M-PESA 14.2%). Directors recommended the payment of a final dividend of KES 1.10 per share. This was in line with our estimate of KES 1.08. We maintain our HOLD recommendation against our target price of KES 26.27. This represents a 7% downside potential against the latest market price of KES 28.25.

10/05/2018 6 EN

Underlying

Safaricom Ltd

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KE1000001402 Nairobi Securities Exchange Kenya

Provider

Genghis Capital

Genghis Capital is an innovative and customer focused Investment Bank licensed by the Capital Markets Authority (CMA). Founded in 2008, Genghis is one of the leading investment banks in Kenya. Since its establishment, Genghis has achieved tremendous growth to offer a well-diversified portfolio of financial services that includes:

i. Securities(Equity/Debt) Trading
ii. Research
iii. Wealth Management services
iv. Investment Advisory & Management via the GenCap Unit Trusts
v. Corporate Finance & Transaction Advisory services

The Kenyan Capital Markets continue to develop in size, scope and sophistication. With this is an increasing demand for more specialized and personalized brokerage service and we at Genghis Capital are glad to be able to offer you this service. Our strength lies in ensuring our clients are up to speed with developments at the stock market and the economy. Research and technology remains our competitive and comparative advantage hence Experience, Expertise and Professionalism are some of the qualities you can expect from our team.

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Safaricom Plc (NSE: SCOM) FY18 Earnings Note

Sub-Saharan African Telecoms Solid top line, decent overall performance given the macro environment; Q1 24 review

Safaricom (Neutral, TP: KES17, +7%) H2 FY24: Decent semester; Strong performance in Kenya, Ethiopia still a drag; Encouraging FY25 guidance

Sub-Saharan African Telecoms Decent quarter in a challenging macro environment; Q3 23 review

Genghis Cross-Asset Weekly Strategy - 8th February 2021

East African Breweries Ltd (NSE: EABL) 1H21 Earnings Note

KenGen Company Plc (NSE: KEGN) FY20 Earnings Note

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