Kenya’s leading mobile network provider Safaricom said it had recorded a revenue increase of around 15 percent faced in the first quarter of 2009, despite various economic and operational challenges.
“It was probably our most challenging year in terms of operating environment,” Chief Executive Michael Joseph told media.
The company had previously reported a 23.3 percent fall in annual pretax profit to 15.30 billion shillings, which the CEO attributed to high financing costs.
Mr. Joseph added that the company will face other short-term challenges, saying: “With the increased level of penetration into more rural areas where consumers’ disposable income is lower, it is anticipated that voice ARPU will continue to decline,”
“However, with Internet penetration at less than 10 percent, there is a significant opportunity to compensate.”
UK mobile network provider Vodafone owns a 40% stake in Safaricom, and continued to increase its footprint on the African continent with the recent acquisition of a controlling stake in South Africa’s Vodacom.
