Safaricom financial situation

Safaricom is a caller-up that deals with tele talk table service, voice messaging and fixed openhanded stripes. The society output raise be classified as voice, data and pry added operate. Voice serve include insurance premium Rate go besides know as third party satiate service, provide recorded information or live conversation for callers. Safaricom Pre Pay services allow subscribers to pay in arrive at and freely choose a responsibility that suits them. Data services include airtime recharging and sambaza.Sambaza, launched in March, has enabled subscribers to sh be their airtime with their friends and family for free. Okoa jahazi and bonga loyalty scheme has enabled subscribers to love advance airtime and to be awarded for their airtime usage . Mpesa service has allowed customers to easily send money finished the mobile phones, a very innovative applied science, and a first in Kenya. hit man fiber optic, SEACOM, provides high capacity band width for high internet connectivity. To happen upon all these, the company has implemented a number of inputs.It has leased services of some(prenominal) companies as Cellulant, Bernsoft, interactive, Adtel , Mobile Zone and white Anglo-Saxon Protestant ,to provide Premium Rate Services to ascertain effective live communication between its subscribes and outside world . Ongea 24/7 has enabled efficiency in prepaid airtimes. It has also assisted in traffic in virtual electronic airtime. Safaricom wideband Modem (Huawei E220) and Safaricom Broadband Router (Huawei E960) has enabled access up to 7. 2Mbps downlink speeds as compared to 236 kbps from other technologies (Michael Joseph, 2009).The company has developed some(prenominal) technological solutions to deal streamlinedly and efficaciously with existing problems. The company has launch the hot internet connection through the 3G engineering known as Safaricom live(Michael Joseph,2009). The company also provides a wide range of services including broadband wireless data (Up to 7. 2 of 2Mbps downlink Speeds), video calls and telephony. It is also signing a deal with a European riotous to launch fourth generation technology which will see increase in the speed of internet connection from the accredited 7. 2 of 2Mbps .Safaricom has also launched new products and services in the food market that the normal Mwananchi can afford e. g. bamba 20, bemba bamba and super ongea tariff which is as low as 80 cents. In September, 2001 it launched ATM top up for its pre-paid subscribers to enable top up at bank clerk machine. It has also created technological problem settlement techniques. In the magazine by MaryAnn and Chris (2009) the company has created the widest network coverage in Kenya to look that subscribers receive clear signal when communication (p. 35). Business Messaging Solutions has enabled quick and low-priced communication to a large audience. fit in to Less (2009) Safaricom has a turnover of 70. 5 zillion revenues from 61. 4trillion the previous year, a 14. 8 % increase, with a market capitalization of 148 billion (p. 18). Safaricom controls the stock market with a inclination of 40 billion shares, the highest in Africa. It has an direct profit of16. 2 billion with a profit before tax of 15. 3 billion (Less,2009). Cash of 30. 1 billion from operations remained strong enabling the company to expand its network coverage and ensure that it had a strong network to process its increasing subscribers. The shareholders fund increased by 19. 9% to 51. billion (Michael Joseph, 2009). The graph shows how the be of subscribers have significantly increased as at Nov 2009. Though Safaricom runs the telecommunication industry, it has been go about with stiff competition from other companies as Zain, Orange, Econet wireless, Access Kenya and Wananchi on line. Safaricom has continued market leadership with a control of 79. 1% of the market i. e. 13. 6 million subscribers hence it can be said to be a ma rket price setter. simplification in GDP growth, increase in margin, Global financial crisis and high anoint prices is significantly affecting the company efficient performance.Less (2009) however shows that there has been an upward movement in revenues by 83% to 12. 9% of total revenue despite of these economic back drops (p. 19). The launch of Jibambie promotion, Jambo attain Centre and 3G and Wimax data services are some of the events the company marks as having contributed to its success. According to Chris (2009) the launch of M Pesa has been a run way success story, with a current 6. 2 million subscribers and shs 17. 1billion beam from one person to another as at March 2009 (p. 11).