Safaricom (SCOM), one of the biggest brand names in Kenya, is a provider of mobile telecommunications services. The stock trades on the Nairobi Stock Exchange.
The company's market share in Kenya is about 78% with a subscriber base of 15.8 million. Safaricom has consistently generated positive cash flows from operating activities despite higher investments for developing its network infrastructure.
Regulations and lower competitor tariff could compel Safaricom to restructure its calling tariffs, according to analysts. However, the company enjoys the first-mover advantage in data. Its 3G set up and efforts to install a Wimax network would help increased its share of data revenues, which are more profitable. Analysts expect the share of data and other value-added services to contribute 30% of revenue in fiscal 2011, compared to 8% in fiscal 2008.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV