Bloomberg News

Safaricom Raises Dividend 10% as Profit Beats Estimates

May 11, 2012

Safaricom Ltd. (SAFCOM), East Africa’s biggest mobile-phone company, declined for the first time in three days on concern sales growth will slow.

Safaricom shares fell 1.5 percent to 3.40 shillings by the close in Nairobi. Sales in the year to March 2013 will rise by low- to mid-single digits, Chief Financial Officer John Tombleson told investors in Nairobi yesterday. Sales increased 13 percent to 107 billion shillings, the company said while reporting its 12-month results through March.

“The guidance was not convincing enough so investors are starting to have second thoughts,” Eric Musau, a research analyst at Nairobi-based Standard Investment Bank Ltd., said in a phone interview today.

The stock jumped 3 percent yesterday, the most in more than two months after the company reported a net income of 12.6 billion shillings ($150.6 million). The average estimate of five analysts surveyed by Bloomberg was for a profit of 10.4 billion shillings.

To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net


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