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Safaricom HY 2014 results announcement
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PKoli
#31 Posted : Tuesday, November 05, 2013 10:25:29 PM
Rank: Elder

Joined: 2/10/2007
Posts: 1,587
Ericsson wrote:
@Pkoli;The investment in fiber is going to slow down the growth rate of safaricom profits due to increase in operational expenditure i.e cost of maintaining the fiber.
The current growth rate is as a result of the second half of 2012/2013 momentum.
Also the following was the comment going forward;
Improved guidance for the full year
 Forecasting low double digit growth in total revenue
 Expect to maintain the current EBITDA margin

As for the share price double digit not yet as the current share price has already taken into account the recently announced results.


What is the capex on fibre optic?
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Mie
#32 Posted : Wednesday, November 06, 2013 9:34:49 AM
Rank: Hello

Joined: 10/10/2013
Posts: 5
The Capex in fibre is far higher than MW; but the opex in fibre is much lower than MW; and service gurantee and continuity much higher. So opex is expected to come down as MW is retired.
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Metasploit
#33 Posted : Wednesday, November 06, 2013 9:41:13 AM
Rank: Veteran

Joined: 3/26/2012
Posts: 985
Location: Dar es salaam,Tanzania
follow the discussions on the results on CNBC africa

https://twitter.com/eyeonkenya

“The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.”
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erifloss
#34 Posted : Wednesday, November 06, 2013 12:04:45 PM
Rank: Member

Joined: 6/21/2010
Posts: 514
Location: Nairobi
Ericsson wrote:
@Pkoli;The investment in fiber is going to slow down the growth rate of safaricom profits due to increase in operational expenditure i.e cost of maintaining the fiber.
The current growth rate is as a result of the second half of 2012/2013 momentum.
Also the following was the comment going forward;
Improved guidance for the full year
 Forecasting low double digit growth in total revenue
 Expect to maintain the current EBITDA margin

As for the share price double digit not yet as the current share price has already taken into account the recently announced results.

I beg to differ since they are going to have an almost commensurate growth in income within the internet provision platform and value addition services platform. My take is they'll drive their service provision into the corporate sector with the sole purpose of providing shared services to SMEs and some large body corporates. What they are basically doing now within the cloud computing platform is "price and product discovery" and the moment they hit the right cord then the rest will be all about the paper.
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
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erifloss
#35 Posted : Wednesday, November 06, 2013 12:55:18 PM
Rank: Member

Joined: 6/21/2010
Posts: 514
Location: Nairobi
The other important element that Safaricom has shown us as consumers and not investors is that Banks are actually ripping us off big time. For instance KCB (the Bank not Group) had an income of 23.48B (Gross Interest + Non operating income) with a PBT of 9.1B within half year as compared to safcom's 69.2B income bringing in 15.9B PBT.
Simply said if KCB would be making the same income as Safaricom, they would be raking in a good half year PBT of around 26.91B.
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
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Ericsson
#36 Posted : Wednesday, November 06, 2013 2:33:53 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,809
Location: NAIROBI
@Pkoli;Capital expenditure they have put at ksh.27 billion

@Mie;Opex on fiber is higher than in microwave because of fiber cuts that occur due to vandalism,sabotage and other reasons.Other reasons for higher opex in fiber is due to road construction/expansion which necessitates relocation of the fiber.Road contractors damage the fiber here and there without care.
Ask anybody in Telecom kenya/Orange or any other fiber infrastructure company and they will tell you.
If they are able to create additional demand for their services and customers willing to pay then they acan mitigate this
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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mkeiyd
#37 Posted : Wednesday, November 06, 2013 3:06:41 PM
Rank: Veteran

Joined: 3/26/2012
Posts: 1,182
Ericsson wrote:
@Pkoli;Capital expenditure they have put at ksh.27 billion

@Mie;Opex on fiber is higher than in microwave because of fiber cuts that occur due to vandalism,sabotage and other reasons.Other reasons for higher opex in fiber is due to road construction/expansion which necessitates relocation of the fiber.Road contractors damage the fiber here and there without care.
Ask anybody in Telecom kenya/Orange or any other fiber infrastructure company and they will tell you.
If they are able to create additional demand for their services and customers willing to pay then they acan mitigate this


How many times does that happen in let's say a year?
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murchr
#38 Posted : Friday, January 03, 2014 9:02:39 PM
Rank: Elder

Joined: 2/26/2012
Posts: 15,980
Anyone dismissing this play....http://www.businessdailyafrica.com/Matatus-sign-to-M-Pesa-ahead-of-cash-fare-ban/-/539552/2132510/-/12ollnf/-/index.html

http://www.the-star.co.k...ked-over-sh30m-kcpe-smss
"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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xtina
#39 Posted : Saturday, January 25, 2014 2:27:11 PM
Rank: Member

Joined: 6/26/2008
Posts: 399
Telecommunications firm Safaricom is angling for the highly untapped insurance market with a low cost health cover. On Wednesday, the operator in partnership with investment firm Britam and Changamka Micro Insurance unveiled a health cover targeting to attract a million customers in the next one year. Linda Jamii – which has been running on a pilot basis in Nairobi for the last year – targets more than 38 million Kenyans that do not have health insurance and is expected to be a significant revenue stream for the two firms in the coming years.
Read more at: http://www.standardmedia...rance-to-boost-revenues


Thoughts?
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hisah
#40 Posted : Saturday, January 25, 2014 6:02:03 PM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
hisah wrote:
Wow! This elephant has some distance to sprint!

Net financing cost down by 72.4% as it matches towards the debt free goal of 2015.

Cashflow up 167% (13.7B) - big bazooka stash that will worry the competition as well make investors demand a div pay hike.

Same acceleration growth should see final EPS close 56 - 60cts. With the current PER of 21 that should see the price scale towards 12 - 12.50. From today's close at 9.65/- that's a 29% upside towards 12.50 by June 2014. Still more headroom to come.


Post #15 on November 05, 2013 after the H1 results release.

My 12.50 target has been blown out before June 2014... The bulls are too aggressive Silenced
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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