Accesskenya Blames Weaker Shilling for Profit Drop
Internet service provider, AccessKenya has reported a 59 per cent drop in profit after tax, which the company attributes to price cuts and a weaker Kenyan shilling. The earnings after tax fell from Sh75.39 million last year to Sh30.65 million in the six months to end of June. According to a statement from AccessKenya, the business suffered a foreign exchange loss as a result of the marked depreciation of Kenya shilling in the last couple of months impacting on the firm's dollar liabilities, in particular to its long term dollar borrowing. Turnover went down from Sh1.06 billion to Sh876 million, when earnings per share fell to Sh0.15 from Sh0.37 a year earlier. The pretax profit fell from Sh89.6 million to Sh40.1 million in the six months to end of June, representing a 55 per cent drop. Going forward, the firm says the trading outlook remains positive in its three core business units and continues with its 'smart' rollout of network in areas of customer demand. AccessKenya runs a 140-kilometre metropolitan fibre optic cable covering Nairobi's Central Business District and other high-end residential areas, that cost Sh400 million. The company, a shareholder in the TEAMS submarine cable initiative, also leases more capacity from SEACOM.