O1 highlights

Five year financial

performance summary
Shs (million) 2012 2013 2014 2015 2016

Voice service revenue 68,122 75,848 84,316 87,368 90,802

M-PESA revenue 16,874 21,844 26,561 32,626 41,500

Mobile data revenue 5,223 6,611 9,314 14,823 21,154

Fixed service revenue 1,371 2,113 2,571 3,128 3,815

Messaging revenue 7,768 10,147 13,620 15,671 17,328

Other service revenue 836 1,489 1,980 2,631 3,185

Service revenue 100,193 118,051 138,361 156,247 177,784

Handset and other revenue 6,803 6,236 6,312 7,117 8,621

Construction revenue - - - - 9,280

Total revenue 106,996 124,288 144,672 163,364 195,685

Other income - - 127 576 232

Direct costs (42,742) (47,174) (51,964) (56,709) (62,310)

Construction costs - - - - (9,280)

Contribution margin 64,254 77,114 92,835 107,231 124,327

Operating expenses (26,761) (27,875) (31,892) (36,040) (41,261)

EBITDA 37,493 49,239 60,943 71,191 83,066

Depreciation & amortisation costs (17,340) (22,139) (25,787) (25,570) (27,943)

Net finance costs (1,702) (1,452) (355) 219 504

Net forex gain/(loss) (1,082) (188) 168 206 398

Fair value loss on investment property - - - - (367)

Share of associate profit / (loss) 1 (10) 15 (4) 104

Assets purchase bargain gain - - - 108 -

EBT 17,370 25,451 34,984 46,150 55,763

Taxation (4,742) (7,911) (11,967) (14,278) (17,658)

Net income 12,628 17,540 23,018 31,871 38,104

Earnings per share (Shs) 0.32 0.44 0.57 0.80 0.95

Free cash flow (Shs million) 9,350 14,507 22,692 27,524 30,360

Ordinary dividend (paid / proposed) (Shs million) 8,800 12,400 18,831 25,642 30,483

Ordinary dividend per share (Shs) 0.22 0.31 0.47 0.64 0.76

8 Safaricom | Annual Report 2016