AccessKenya Group today announced a 62 % increase in pre-tax profit for the 2012 financial year to Kshs 212 million, building on the improvements made in 2011, leading the company to declare a dividend of 30 cents per share to shareholders.
AccessKenya Group CEO Jonathan Somen said “Our leased line connections are up by 700 customers to 5400 total leased lines, our Revenues are up by 9% to Kshs 1.9 billion, our EBITDA is up over Kshs 100 million to Kshs 700 million, our pretax profits are up 62% to Kshs 212 million and our Profit After tax is up Kshs 42 million to Kshs 151 million. All our key metrics have improved significantly and this reflects our positioning as the number one choice of corporate service provider in Kenya.”
The improved performance is attributed to a significant increase in internet subscriptions, a highly robust and reliable network and strong customer service that have spurred customer growth for the company.
“Our corporate leased lines grew from 4,700 to 5,400 compared to the same period in 2011. This is an indication that we remained steadfast in our core business – corporate data and IT solutions. More and more customers have realized that we have the best network and are signing up for our service,” said Somen.
The company is reaping the benefits of migrating customers onto its metro fibre network which continues to expand across all the key business areas of Nairobi and Mombasa with over 400 km of fibre now in the ground. Recently, the company rolled out a network optimization drive in which it intends to convert all wireless base stations to fibre backhauls so as to deliver more capacity.
“As a result of the growth in customer numbers, our total revenues increased by 9% last year despite the continued fall in Average Revenue per User experienced across the industry. This revenue increase, coupled with careful control of costs, boosted the EBITDA from KSh594 million in 2011 to KSh700 million in 2012, and an increase in profit before tax from KSh131m in 2011 to KSh212m last year. This has allowed us to pay a dividend to shareholders as well as continuing to fund our significant fibre expansion programme” he explained.
The free cash flow generated by the good business performance allowed the company to invest nearly Kshs 400 million in infrastructure – primarily the metro fibre.