AccessKenya Group Breaks K Shs 1 billion revenue target one year early; profit rises over 300% to K Shs 150 million
AccessKenya Group, Kenya’s only publicly listed ICT company, last week announced its results for the year ending December, 2007, breaking the K Shs 1 billion barrier one year early and reporting a significant increase in profit after tax from K Shs 47 million in 2006 to K Shs 150 million in 2007. The Group closed the year with 1,950 corporate broadband customers and Earnings per share for 2007 stand at 0.97. In addition to the strong results, the Group has made significant progress on all its key IPO pledges.
“We are delighted to announce that revenues for the year ending December 2007 have broken the barrier of one billion shillings a year early – an increase of nearly 75% from our 2006 revenues of K Shs 578 million.
Profit after tax is exactly in line with our IPO projections of K Shs 150 million – an increase of over 300% from the 2006 profit after tax of K Shs 47 million. We have increased our broadband corporate customers from 1,250 to 1,950 during the course of the year and at the same time further increased the value for money of our offering and opened up an even bigger difference with our competition through our quadruple downlink “Broadband Max 2” solution.” commented Jonathan Somen, Group Managing Director.
Somen continued, “We are also delighted to announce the payment of our first post IPO dividend as pledged in our prospectus of 40% of our profit after tax or K Shs 0.30 per share. After payment of the dividend, we will still have approximately K Shs 600 million in cash and unutilised bank facilities to fund our expansion strategy and in particular the launches of our key new services - Outsource IT, our new managed IT service for corporate customers, and our new residential broadband service, Access @ Home.” The AccessKenya Group has made significant progress with respect to its main IPO pledges, in particular
• To aggressively increase market share in the core corporate internet sector, where the Group closed the year with 1,950 leased lines – ahead of the IPO projections of 1,720 – and with an estimated market share of about 40%
• To enter the IT services market with the acquisition of Openview Business Systems in 2007 and the forthcoming launch of Outsource IT
• To launch a residential broadband service in 2008 for which technology and marketing plans are complete. This will be a tremendous opportunity for the Group to extend their high levels of broadband service and speed from corporate to residential customers.