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Safaricom Half Year 2010/2011 results review
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guru267
#31 Posted : Thursday, November 11, 2010 5:43:05 AM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
Investors should note that although safcom's 2010 H1 profits of 10.5billion are better than H1 2009 of 9.8billion they are worse than H2 2009 which was 11.1 billion and this was with only one month of price wars and with massive growth in their MPESa and data segments for the period under review. This proves my point that they will continue to rely on voice revenues for some time....

It should also be noted that Their ARPU is down 13% with only 1 month of price wars for the period under review...

To me these are key pointers to H2 results but since I know many investors will take these results at face value this stock will probably rally in the short term... smile

Mark 12:29
Deuteronomy 4:16
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selah
#32 Posted : Thursday, November 11, 2010 8:46:11 AM
Rank: Elder

Joined: 10/13/2009
Posts: 1,950
Location: in kenya
What an anticlimax for critics. pple were expecting a considerable drop in its profit now that it has actually declared an increase thats not news.for instance most Tv station did not report the result on their 7pm news, but if it had declared a drop in its earnings am sure it would have been breaking News.

Even they had the guts to say analyst are waiting to see the full year result to see the impact of the price war.Why not analyse the released result first instead of waiting for another six months to give us another analysis of how the following year will affect the company.

To give Zain credit they hav tried alot to wrestle approx. 4% of safaricoms market share.Bob collymore should watch out for another gorrila tactics from this company which I believe is in the offing
'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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My 2 cents
#33 Posted : Thursday, November 11, 2010 9:06:09 AM
Rank: Veteran

Joined: 6/2/2010
Posts: 1,090
H1 results should be compared with H1 results. Oranges against oranges. I wonder what kind off defenses safcoms critics will come up with when full year results are announced next year. Like I said when the price wars started; when all is said and done, at the end of this year nothing will have changed. Safcom will still be a very profitable market leader. Airtel/Zain/Bharti/Kencell have systematic weaknesses that make them losses year in year out. In this and now their own home market.
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mlennyma
#34 Posted : Thursday, November 11, 2010 9:12:56 AM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
Even if it comes a time when saf makes 10b full year profits after tax,this is good income...i think no bank in kenya dares reaching this profits.
"Don't let the fear of losing be greater than the excitement of winning."
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My 2 cents
#35 Posted : Thursday, November 11, 2010 9:18:06 AM
Rank: Veteran

Joined: 6/2/2010
Posts: 1,090
mlennyma wrote:
Even if it comes a time when saf makes 10b full year profits after tax,this is good income...i think no bank in kenya dares reaching this profits.


BBK will make more than 9B in 2010. H1 results were 4.7B
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mlennyma
#36 Posted : Thursday, November 11, 2010 9:20:53 AM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
Is 9b equal to 10b?
"Don't let the fear of losing be greater than the excitement of winning."
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Much Know
#37 Posted : Thursday, November 11, 2010 9:24:02 AM
Rank: Elder

Joined: 12/6/2008
Posts: 3,579
It is important to look at a share price not just the business environment. Price wars do not form an absolute tool for the measurement of a shares value. Its current market price also does not reflect its intrinsic value. Expecting a decline of the price on the basis of price wars is to miss the point by hundreds of kilometers. This share was issued at 5.50/-, after an extensive valuation process, at a PAT of 15 bill, with much fewer assets hence NAV than it is currently at and was oversubscribed 3 times, meaning it still had upswing, save for the financial crisis, this share would be way up. This is probably the most battered stock on the NSE due to a lot of amateur hype.
Ras Kienyeji Man
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mlennyma
#38 Posted : Thursday, November 11, 2010 9:27:19 AM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
Okay for now tuko juu juu full year profit will drop from 20.9b to around 19-20b which is the best in east and central africa.
"Don't let the fear of losing be greater than the excitement of winning."
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My 2 cents
#39 Posted : Thursday, November 11, 2010 9:38:23 AM
Rank: Veteran

Joined: 6/2/2010
Posts: 1,090
mlennyma wrote:
Is 9b equal to 10b?

Where in my statement did I say 10 B = 9 B
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VituVingiSana
#40 Posted : Thursday, November 11, 2010 10:06:36 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,350
Location: Nairobi
You know Safaricom is making these profits off you... LOL... I have no Safaricom shares thus I can't be bothered except hoping Zain-Airtel keep up the price war so I enjoy more shillings in my pocket...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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