Safaricom Plc (NSE: SCOM): 1H19 Earnings Note
Safaricom Plc (NSE: SCOM) released 1H19 earnings reporting a 20.3% y/y growth in EPS to KES 0.79. Similarly, operating profit (EBIT) rose impressively by 18.7% y/y to KES 44.6Bn. Total revenue rose 11.0% y/y to KES 122.8Bn supported by increased usage across all revenue segments except SMS (voice +1.4%, SMS -1.2%, mobile data +10.8%, fixed data +21.0% and M-PESA +18.2%). Growth in mobile data was hinged on increased data usage per user to 640MB from 382MB in 1H18 while fixed data was boosted by the additional 30,000 connected homes in the 6 months duration. We maintain our HOLD recommendation with an accumulate bias against our target price of KES 26.27 which represents a potential return of 7.2%.
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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