SAFARICOM LIMITED - Welcome to RICH.CO.KE Ltd Abridged Annual Report.pdf · safaricom limited...
Transcript of SAFARICOM LIMITED - Welcome to RICH.CO.KE Ltd Abridged Annual Report.pdf · safaricom limited...
SUMMARY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014ABRIDGED AND PUBLISHED IN ACCORDANCE WITH ARTICLE 145 OF THE COMPANY’S ARTICLES OF ASSOCIATION
SAFARICOM LIMITED
Kenya’s business environment has been characterised by changes to the VAT regime and legislative developments WKDW�UHGHÀQHG�VRPH�HOHPHQWV�RI�RXU�industry. At the macro-level, the economy grew by 4% and we witnessed a steady GROODU�H[FKDQJH�UDWH��ZKLFK�IRVWHUHG�D�FRQGXFLYH�EXVLQHVV�HQYLURQPHQW�IRU�WKH�company.
2Q�WKH�JRYHUQDQFH�IURQW��WKH�LPSDFW�RI�GHYROXWLRQ�KDV�VWDUWHG�WR�WDNH�VKDSH��We became involved in large-scale LQIUDVWUXFWXUH�SURMHFWV��ZKLFK�VRPH�FRXQWU\�governments had begun to implement.
We noted sustained interest in Kenya as a EXVLQHVV�KXE�DQG�GHVWLQDWLRQ�IRU�3DQ�$IULFDQ�DQG�LQWHUQDWLRQDO�LQYHVWRUV��:H�believe that the new capital being channelled into the country will not only FUHDWH�HPSOR\PHQW��EXW�RSHQ�XS�QHZ�PDUNHWV�IRU�.HQ\D�
7KH�6DIDULFRP�VKDUH�PDLQWDLQHG�LWV�XSZDUG�PRPHQWXP��ZLWK�D�GRXEOLQJ�RI�WKH�VKDUH�SULFH�RYHU�WKH�ODVW�\HDU��7KLV��ZH�EHOLHYH��LV�D�YDOLGDWLRQ�RI�RXU�EXVLQHVV�VWUDWHJ\��2XU�GHGLFDWLRQ�WR�RXU�VWUDWHJ\�KDV�\LHOGHG�D�VWURQJ�VHW�RI�ÀQDQFLDO�UHVXOWV��JHQHUDWHG�VLJQLÀFDQW�IUHH�FDVK�ÁRZ�DQG�LV�FRQÀUPDWLRQ�RI�RXU�FRPPLWPHQW�WR�JHQHUDWLQJ�ORQJ�WHUP�YDOXH�IRU�DOO�RXU�VKDUHKROGHUV��7KH�%RDUG�UHFRPPHQGHG�D�GLYLGHQG�RI����FHQWV�SHU�VKDUH��DQ�LQFUHDVH�RI�52%, totalling Kshs 18.83 billion. This is, once again, the largest dividend in Kenyan history.
We continued to invest in the communities we operate in through various FRUSRUDWH�VRFLDO�UHVSRQVLELOLW\�LQLWLDWLYHV��1RWDEO\��WKH�6DIDULFRP�)RXQGDWLRQ�PDUNHG�LWV���WK�DQQLYHUVDU\�LQ�$XJXVW������DQG�FHOHEUDWHG�WKH�GLVEXUVHPHQW�RI�DERXW�.VKV���ELOOLRQ�WR�RYHU�����FRPPXQLW\�GHYHORSPHQW�SURMHFWV�LQ�SDUWQHUVKLS�ZLWK�RYHU�����RUJDQLVDWLRQV��
$V�WKH�PDUNHW�OHDGHU�LQ�.HQ\D��ZH�DUH�LQ�D�VWURQJ�SRVLWLRQ�WR�OHYHUDJH�RXU�FDSDELOLWLHV�DQG�PHHW�WKH�HYHU�HYROYLQJ�QHHGV�RI�RXU�FXVWRPHUV��7KH\�DUH�ORRNLQJ�WR�XV�WR�GHOLYHU�QHZ�VHUYLFHV�DQG�SURYLGH�D�QHWZRUN�WKDW�DOORZV�WKHP�WR�IXOO\�SDUWLFLSDWH�LQ�WKH�QHZ�GLJLWDO�ZRUOG��:LWK�RXU�VWUDWHJ\�LQ�SODFH�DQG�RXU�FRPPLWPHQW�WR�WUDQVIRUPLQJ�OLYHV��ZH�DUH�FRQÀGHQW�ZH�ZLOO�EH�DEOH�WR�KDUQHVV�QHZ�RSSRUWXQLWLHV�IRU�JURZWK�LQ�WKH�\HDU�DKHDG�
Nicholas Nganga Chairman
6 August 2014
:H�H[SHULHQFHG�D�\HDU�RI�VWURQJ�SHUIRUPDQFH�DFURVV�RXU�HQWLUH�VHUYLFH�SRUWIROLR��7KLV�KDV�HQDEOHG�XV�WR�FRQWLQXH�WR�LQYHVW�LQ�RXU�QHWZRUN�DQG�LQWURGXFH�innovative products and services. &XVWRPHU�VDWLVIDFWLRQ�OHYHOV�FRQWLQXHG�WR�LPSURYH�DV�HYLGHQFHG�E\�KLJKHU�XVDJH�RI�all our products and services.
Our total revenue grew by 16% to Kshs �������ELOOLRQ�DQG�RXU�FXVWRPHU�EDVH�JUHZ�by 11%. Voice remained our predominant revenue stream and increased by 12% to .VKV�������ELOOLRQ��ZKLOH�QRQ�YRLFH�VHUYLFH�VWUHDPV�DFFRXQWHG�IRU�����RI�WRWDO�revenue.
0�3(6$�UHPDLQHG�WKH�NH\�GULYHU�DQG�JHQHUDWHG�.VKV�������ELOOLRQ��ZKLFK�LV�KDOI�RI�RXU�QRQ�YRLFH�VHUYLFH�UHYHQXH��7KLV�JURZWK�ZDV�GULYHQ�SULPDULO\�E\�D�����LQFUHDVH�LQ����GD\�DFWLYH�0�3(6$�FXVWRPHUV�DQG�DQ�LQFUHDVH�LQ�WKH�DYHUDJH�QXPEHU�RI�WUDQVDFWLRQV�SHU�FXVWRPHU��7KH�0�3(6$�DJHQW�IRRWSULQW�H[SDQGHG�WR���������ZKLFK�PDGH�WKH�VHUYLFH�HYHQ�PRUH�DFFHVVLEOH�WR�RXU�FXVWRPHUV��
:H�DFKLHYHG�\HW�DQRWKHU�PLOHVWRQH�LQ�GHHSHQLQJ�ÀQDQFLDO�LQFOXVLRQ�ZLWK�WKH�ODXQFK�RI�Lipa na�0�3(6$��ZKLFK�HQDEOHG�FDVKOHVV�PHUFKDQW�SD\PHQWV�DQG�IDFLOLWDWHG�WUDGH�EHWZHHQ�EXVLQHVVHV�DQG�WKHLU�FXVWRPHUV�ZKLOH�LPSURYLQJ�EXVLQHVV�HIÀFLHQF\��,Q�WKH�SHULRG�XQGHU�FRQVLGHUDWLRQ��WKH���������PHUFKDQWV�UHJLVWHUHG�IRU�WKH�VHUYLFH�DQG�����EHJDQ�WR�DFWLYHO\�XVH�LW�
0HVVDJLQJ�UHYHQXH�ZDV�D�VWDQGRXW�SHUIRUPHU��JURZLQJ�DW�����WR�.VKV�������ELOOLRQ��:H�FRQWLQXH�WR�EXFN�WKH�WUHQG�LQ�RWKHU�SDUWV�RI�WKH�ZRUOG�ZKHUH�LQVWDQW�messaging services are eroding SMS business. Mobile data revenue grew by 41% supported by a 34% growth in customers to 9.6 million and an increased XSWDNH�RI�DIIRUGDEOH�GDWD�EXQGOHV��7KURXJK�IDVWHU�DGRSWLRQ�RI�VPDUWSKRQHV��we now have 3.1 million customers using 3G enabled devices. Fixed data UHYHQXH�JUHZ�E\�����WR�.VKV������ELOOLRQ�RQ�WKH�EDFN�RI�LQFUHDVHG�FXVWRPHU�numbers and usage.
)ROORZLQJ�WKH�LQLWLDWLRQ�RI�RXU�%HVW�1HWZRUN�LQ�.HQ\D�SURJUDPPH����PRQWKV�DJR��ZH�LQYHVWHG�.VKV�������ELOOLRQ�LQ�LPSURYLQJ�RXU�QHWZRUN�TXDOLW\��FDSDFLW\�DQG�FRYHUDJH��:H�LQFUHDVHG�WKH�SRSXODWLRQ�FRYHUDJH�RI�RXU��*�DQG��*�QHWZRUNV��FRPSOHWHG�QHWZRUN�PRGHUQLVDWLRQ�LQ�VL[�NH\�FLWLHV�DQG�UROOHG�RXW�ÀEUH�WR�����RI�RXU�EDVH�VWDWLRQV�LQ�1DLUREL��2XU�UREXVW�UHVXOWV�FRXSOHG�ZLWK�FRVW�HIÀFLHQF\�HQVXUHG�YDOXH�IRU�RXU�VKDUHKROGHUV�DQG�SXVKHG�WKH�(%,7'$�PDUJLQ�XSZDUGV�WR��������)UHH�FDVK�ÁRZ�DOVR�LQFUHDVHG�E\�����DV�D�UHVXOW�RI�RXU�VWURQJ�WUDGLQJ�UHVXOWV�DQG�SRVLWLYH�ZRUNLQJ�FDSLWDO�
/RRNLQJ�DKHDG��RXU�JRDO�LV�WR�FRQWLQXH�WUDQVIRUPLQJ�WKH�OLYHV�RI�RXU�IHOORZ�Kenyans by delighting our customers with great value and innovative products DQG�VHUYLFHV��GHHSHQLQJ�ÀQDQFLDO�LQFOXVLRQ��JURZLQJ�RXU�PRELOH�GDWD�QHWZRUN��EHFRPLQJ�WKH�SDUWQHU�RI�FKRLFH�IRU�EXVLQHVV�DQG�SXUVXLQJ�%HVW�1HWZRUN�LQ�Kenya status.
Robert Collymore CEO
6 August 2014
CHAIRMAN’S ABRIDGED COMMENTARY
CEO’S ABRIDGED COMMENTARY
SAFARICOM LIMITED REPORT OF THE INDEPENDENT AUDITOR ON THE SUMMARY FINANCIAL STATEMENTS TO THE MEMBERS OF SAFARICOM LIMITED
REPORT ON THE SUMMARY CONSOLIDATED FINANCIAL STATEMENTS
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DIRECTORS’ RESPONSIbILITIES FOR THE SUMMARY FINANCIAL STATEMENTS
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SUMMARY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME SUMMARY CONSOLIDATED STATEMENT OF FINANCIAL POSITION 6800$5<�&2162/,'$7('�67$7(0(17�2)�&$6+�)/2:6 Year ended 31 March
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SUMMARY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014ABRIDGED AND PUBLISHED IN ACCORDANCE WITH ARTICLE 145 OF THE COMPANY’S ARTICLES OF ASSOCIATION
Safaricom Limited
Notes Attributable to owners of the Company
Share capital
Shs’000
Share premium
Shs’000
Retained earnings
Shs’000
Proposeddividends
Shs’000
Non-controlling interest
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Total equity
Shs’000
Year ended 31 March 2013at start of year 2,000,000 1,850,000 59,940,584 8,800,000 (508,886) 72,081,698
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Total transactions with owners - - (12,400,000) 3,600,000 - (8,800,000)
$W�HQG�RI�\HDU� 2,000,000 1,850,000 64,015,128 12,400,000 - 80,265,128
Year ended 31 March 2014at start of year 2,000,000 1,850,000 64,015,128 12,400,000 - 80,265,128
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��3URSRVHG�ÀQDO�IRU����� 14 - - (18,830,751) 18,830,751 - -
Total transactions with owners - - (18,830,751) 6,430,751 - (12,400,000 )
$W�HQG�RI�\HDU� 2,003,271 2,200,040 68,201,917 18,830,751 - 91,235,979
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