Posts Tagged ‘Safaricom’

The local mobile voice traffic for Airtel Kenya increased by a substantial margin during the quarter under review to post a total of 1.8 billion minutes up from 1.2 billion minutes posted during the last quarter.

This traffic was mainly contributed by growth in on-net traffic that recorded remarkable growth to stand at 1.1 billion minutes up from 821 million minutes.

Similarly, off-net traffic grew to 647 million during the quarter up from 474 million minutes posted during the last quarter.

Consequently, the operator’s market share grew by 4.8 percentage points to stand at 21.0 per cent up from 16.2 percent share reported during the previous quarter.

This traffic was mainly contributed by growth in on-net traffic that recorded remarkable growth to stand at 1.1 billion minutes up from 821 million minutes/FILEAirtel’s SMS traffic volume gained 2.5 percentage points on market share to stand at 6.9 percent share with 452 million SMS during the quarter up from 324 million messages registered during the last quarter.

The report indicates Airtel is the only operator that has shown consistent growth in SMS traffic over the last four quarters under review. In quarter 1 Airtel had 2.7 percent market share and in quarter 2 the company had 4.4 percent market share of SMS traffic.

The data market has continued to expand over the period with increased growth in subscriptions witnessed during the quarter under review. The number of subscriptions increased by 14.3 percent to stand at 18.8 million up from 16.3 million posted during the last quarter. In relation to the same period of the previous year, growth of 1.3 percent was recorded.

Mobile data continued to dominate the data market with the number of subscriptions registered at 18.6 million up from 16.3 million subscriptions during the last quarter. This represented 14.3 percent growth and 1.3 percent increase compared to the same period of the previous year.

Airtel Networks Limited had 18.5 percent share up from 14.6 percent share representing an increase of 3.9 percentage increase during the quarter. The number of subscriptions, too, expanded to reach 3.4 million up from 2.3 million posted during the previous quarter.

Compared to the previous quarter, Airtel grew its data subscription by 11% and has consistently grown since September 2014.

This growth may be attributed to its innovative UnlimiNET product that champions #UnlimitedConnections to Kenyans by ensuring that they are always connected by the ability to call all networks and remain connected with friends and family on social media platforms and profession networks on the internet even after they run out of data bundles.

Airtel Kenya CEO Adil El Youssefi said: “The growth may also be attributed to our 3G network upgrade exercise in major towns such as Mombasa and Kitale in the month of January in which we deployed the latest wireless technologies that significantly enhanced network signals, data speeds and improved voice quality for our customers.”

This market share growth in data, Voice and SMS traffic is expected to even grow further in the coming quarters as the company reaffirms its commitment in Kenya with the announcement of an ambitious investment program totalling Kshs.19 billion over the next 3 years. The investment will ensure that the Company delivers on its stated commitment to offer the most reliable and best quality network, products and services in the market.

The acquisition of yuMobile subscribers by Airtel Kenya has also contributed to this growth in data, Voice and SMS traffic. For the yuMobile customers, joining the Airtel network has brought a whole new-world of quality experience to them including a much wider and reliable network, better voice call quality, an opportunity to connect faster to the internet including a totally new online experience on Airtel’s 3G network.

Capital Business’ correspondent

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After scoring zero in this year’s Groove Awards, controversial gospel singer Willy Paul stormed out of the Saturday night ceremony at the Safaricom Stadium Kasarani gymnasium in a fury.

“Where is my car and my girlfriend?” paparazzi who tried to get a comment from him on his lack poor score could hear him asking a friend on the phone. According to them, he looked perturbed and rather dejected. The many friends who usually hang around him were nowhere to be seen.

In a year when the big story from the gospel front has been the beef between two past Male Artiste of the Year winners – Willy Paul (2013) and Bahati (2014) – it looks like the latter is having the last laugh. He was the king of the night and congratulatory messages have been streaming in thick and fast. He has many new friends. The ‘Barua’ singer upset his arch-rival by scooping all four categories he had been nominated in, including the coveted Song of the Year and Male Artiste of the Year, as Willy Paul went home empty-handed.

It was a humiliating defeat for the ‘Sitolia’ star whom Bahati has been crying about, claiming Paul has been ‘stealing’ his songs. “I thank God for all this. Glory be to His name. As I said before, I sing to glorify God and I want nothing to do with our (his and Willy Paul’s) stories. I treat him as a brother,” Bahati told MondayBlues yesterday

Groove Awards 10th edition

10th edition of Groove Awards has been postponed to 6th June 2015. According to a press release dated 31st May, the anticipated event has been postponed due to unavoidable circumstances.

“We would like to apologize to all Kenyans and the gospel industry at large for the inconvenience caused by this unavoidable event. My team and I are working hard to ensure that the event takes place next week,” said Kevin Mulei, Founder of Groove Awards.

Groove Award Press Release
The voting will be extended till 5th May 2015. The event will award artistes in 33 different categories, honouring gospel musicians, DJs, producers, radio and television gospel shows.

Safaricom has set a new record after its market value rose to Sh635 billion at the Nairobi Securities Exchange (NSE), at the close of business on Thursday.

That was a Sh5 billion gain from the Sh630 billion it had set on Wednesday and the trend may continue. Shares were trading at an all time high of Sh15.85.

With that Market Capitalization, Safaricom is larger than the next 3 biggest firms on the NSE combined.

Number two on the list is EABL with a market capitalization of Sh248 billion, followed by Equity at Sh190 billion and KCB at Sh183 billion. These 4 companies are more than half the entire NSE.

Now, how does Safaricom compare to the GDPs of African countries?

If Safaricom was a country, it would be a healthy number 36 in Africa, just below Rwanda.

Here’s a table from Wikipedia.

1  Nigeria 594.257
2  South Africa 341.216
3  Egypt 284.860
4  Algeria 227.802
5  Angola 131.407
6  Morocco 112.552
7  Sudan 70.030
8  Kenya 62.722 Revised to $53.40 billion[8]
9  Ethiopia 49.857
10  Libya 49.341
11  Tunisia 49.122
12  Tanzania 36.620 Revised to $41.33 billion[9]
13  Ghana 35.475
14  Ivory Coast 33.963
15  DR Congo 32.665
16  Cameroon 32.163
17  Uganda 26.086 Revised to $24.69 billion[10][11]
18  Zambia 25.611
19  Gabon 20.675
20  Mozambique 16.590
21  Botswana 16.304
22  Senegal 15.881
23  Chad 15.841
24  Equatorial Guinea 15.396
25  Congo 14.114
26  Zimbabwe 13.739
27  Burkina Faso 13.382
28  Mauritius 12.720
29  Mali 12.043
30  Namibia 11.982
31  South Sudan 11.893
32  Madagascar 11.188
33  Benin 9.237
34  Niger 8.290
35  Rwanda 8.002
36  Safaricom 6.91
37  Guinea 6.770
38  Sierra Leone 5.411
39  Togo 4.838
40  Malawi 4.408
41  Mauritania 4.286
42  Eritrea 3.870
43  Swaziland 3.842
44  Burundi 3.037
45  Lesotho 2.458
46  Liberia 2.073
47  Cape Verde 1.975
48  Central African Republic 1.731
49  Djibouti 1.582
50  Seychelles 1.473
51  Guinea-Bissau 1.040
52  The Gambia 0.918
53  Comoros 0.722
54  São Tomé and Príncipe 0.362
55  Somalia
56  Sahrawi Arab Democratic Republic

*Wikipedia figures

Well, as big as these figures may be, lets not forget that Apple has a market capitalization of nearly $800 billion and recently just announced first quarter profits of $18bn. If it were an African country, it would essentially be the wealthiest.

col

Facing pressure from Airtel’s UnlimiNET offer, Safaricom revised their data rates on Friday last week.

They reduced the prices of their bundles, but the catch is that they’ll expire much faster. While previous bundles were going until 2036, the new pricing has them expire after a maximum of 1 month (depending on your package), and they do not carry over to the next month.

The daily data expire after a day, the weekly after a week and the monthly after 30 days. However, any unused data is not carried forward upon renewing.

That has caused a backlash from the public, and now CEO Bob Collymore has promised action.

On Twitter yesterday, he said that the team is urgently looking at options.

bob

By a large distance, Citizen TV is the most watched TV station in Kenya… or rather was the most watched before the switch off.

Some figures have its share at slightly over 50% of total viewers, with NTV and KTN fighting for number two with about 12% each.

K24, KBC, QTV and all the others share the rest.

It is therefore not surprising that the SK Macharia owned station gets the biggest share of advertisers’ billions.

Last year, companies spent over Sh85 billion in media advertisement, of which half went to TV.

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You can see the number has been growing every year.

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As expected, Safaricom was the biggest spender, despite their 2014 budget decreasing. Reckitt Benckiser was once again the second biggest spender, though the gap between them and Safaricom is quite wide.

Some of their products are ever on TV; the likes of Dettol, Harpic, Strepsils and Mortein Doom.

PS Kenya – the Trust condoms and Femiplan guys completed the top three highest spenders list in 2014.

A surprise big spender was OLX coughing out more than Sh1.3 billion last year.

Here’s a chart.

tv3

On radio, SK Macharia has over the years enjoyed the lead, but last year President Uhuru Kenyatta upped his game. Kameme FM overtook Radio Citizen as the biggest receiver of advertiser billions, with 11% of the Sh36 billion on offer.

Royal Media’s flagship radio station did not do so bad either, coming at no. 2 with 10% of the share. When you combine all of SK Macharia’s station, you can see he personally receives nearly a third of the radio advertisement money in Kenya.

rad1

Some bad news for Classic 105 and Nation FM; Advertisers prefer vernacular stations. Despite all matatus listening to Maina and King’ang’i in the morning, the real money is in the grassroots. Here’s a chart to prove it.

rad2

Back to the digital migration. Why do you think the 3 main TV stations are fighting the process so much. Well, they are trying to protect their turf. Digital migration means more options for the viewer and ultimately for the advertiser.

In 2014, the three media houses took home 85% of the advertising revenue. Everyone else shared the remaining 15%.

tv4

As highlighted in the chart above, Ebru TV and Kass TV make it to the top 10 earners, despite being solely on the digital platform.

For instance, Ebru TV took 1% of the advertising revenue when probably 10% of Kenyans were on a digital platform. What will happen when 100% of Kenyans migrate?

Not forgetting stations like Njata, 3 Stones, Property TV and others, which Kenyans have just ‘discovered’.

In this chart showing Ebru’s advertisers, you can see they are the same companies that advertise daily on Citizen and NTV.

tv5

In short, advertisers will split their budget amongst many stations, as opposed to the 3 or 4 currently.

At the end of the day, that will translate to a smaller pay cheque for SK Macharia. You can be certain that these 5000 TV ad spots Citizen has per month will either decrease exponentially or become incredibly cheap moving forward.

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Source: N-Wire, All charts are courtesy of Robert Alai