Safaricom financial situation

Safaricom is a company that hoi pollois with tele discourse services, fathom messaging and fixed broad band. The company output bay window be separate as voice, data and value added services. vox services include Premium invest Services besides know as third party content service, bid recorded information or be conversation for call(a)ers. Safaricom Pre Pay services yield subscribers to pay in cash advance and freely choose a tariff that suits them. info services include airtime recharging and sambaza.Sambaza, unveilinged in March, has enabled subscribers to care their airtime with their friends and family for free. Okoa jahazi and bonga loyalty scheme has enabled subscribers to enjoy advance airtime and to be awarded for their airtime usage . Mpesa service has al minusculeed customers to substantially send m unityy through the fluid phones, a very sophisticated technology, and a first in Kenya. Submarine fictitious character optic, SEACOM, bequeaths high capacity band comprehensiveness for high earnings connectivity. To achieve all these, the company has implemented a tour of inputs.It has leased services of several companies as Cellulant, Bernsoft, interactive, Adtel , Mobile Zone and Wasp ,to provide Premium Rate Services to visualise effective live communication in the midst of its subscribes and outside world . Ongea 24/7 has enabled efficiency in prepaid airtimes. It has also assisted in dealing in virtual electronic airtime. Safaricom wideband Modem (Huawei E220) and Safaricom Broadband Router (Huawei E960) has enabled access up to 7. 2Mbps downlink securenesss as compared to 236 kbps from new(prenominal) technologies (Michael Joseph, 2009).The company has developed several scientific solutions to deal efficiently and effectively with quick problems. The company has launch the fastest internet connection through the 3G technology known as Safaricom live(Michael Joseph,2009). The company also provides a wide range of services including wideband wireless data (Up to 7. 2 of 2Mbps downlink Speeds), ikon calls and telephony. It is also signing a deal with a European firm to launch fourth generation technology which allow see increase in the speed of internet connection from the menstruation 7. 2 of 2Mbps .Safaricom has also launched new products and services in the market that the normal Mwananchi can undergo e. g. bamba 20, bemba bamba and super ongea tariff which is as low as 80 cents. In September, 2001 it launched aura cap up for its pre-paid subscribers to enable top up at teller machine. It has also created technological problem solving techniques. In the magazine by MaryAnn and Chris (2009) the company has created the widest interlocking coverage in Kenya to ensure that subscribers beget clear signal when communicating (p. 35). vocation Messaging Solutions has enabled quick and affordable communication to a large audience. harmonise to little (2009) Safaricom has a turnover of 70. 5 jilli on revenues from 61. 4 million the previous year, a 14. 8 % increase, with a market capitalization of 148 billion (p. 18). Safaricom controls the carnation market with a listing of 40 billion shares, the highest in Africa. It has an operating lolly of16. 2 billion with a realise before tax of 15. 3 billion ( slight,2009). Cash of 30. 1 billion from operations remained strong enabling the company to blast its network coverage and ensure that it had a strong network to handle its change magnitude subscribers. The shareholders fund increased by 19. 9% to 51. billion (Michael Joseph, 2009). The graph shows how the numbers of subscribers contain significantly increased as at Nov 2009. Though Safaricom bombardments the telecommunication industry, it has been faced with cadaver competition from other companies as Zain, Orange, Econet wireless, admission Kenya and Wananchi on line. Safaricom has continued market lead with a control of 79. 1% of the market i. e. 13. 6 million subsc ribers thus it can be said to be a market price setter. Reduction in GDP growth, increase in margin, global financial crisis and high oil prices is significantly affecting the company efficient performance.Less (2009) however shows that there has been an upward exertion in revenues by 83% to 12. 9% of total revenue despite of these sparing back drops (p. 19). The launch of Jibambie promotion, Jambo Contact concenter and 3G and Wimax data services are close to 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 transfer from one person to another as at March 2009 (p. 11).