CC image coutersy of rogiro on Flickr
Kenya’s leading operator Safaricom is approaching a market valuation of KSh500 billion (US$5.8 billion) after its share price gained 3.3 per cent on Friday to hit an all-time high of KSh12.45.
Business Daily reports Standard Investment Bank (SIB) analysts attributed the rise – which saw safaricom close with a valuation of KSh498.6 billion – to “both domestic and international demand”.
SIB also said the market as whole was trending higher on improved demand, with East African Breweries Limited (EABL) and agricultural firms also doing well.
It is a further boost for Safaricom, which controls the lion’s share of the Kenyan market, with HumanIPO reporting in November it had reported a KSh11.3 billion (US$123.2 million) pre-tax profit for the six month period ended September 30, 2013.
Profit after tax increased by 45 per cent, up from KSh11.5 billion (US$134.5 million) over the corresponding period in 2012.
Strong growth in data and mobile money services in the six months propelled Safaricom to the its best half year performance since listing at the Nairobi Securities Exchange (NSE) in 2008.
Bob Collymore, Safaricom chief executive officer (CEO), said: “This set of results demonstrates our commitment to growing investment and shareholder returns through sustained commercial and financial performance across our entire service portfolio.”