The Safaricom board has voted to extend the contract of the firm’s CEO Bob Collymore by a further 2 years, a move which essentially means that the earliest the current boss can hand over the leadership reins to another individual is after August 2019.
Collymore joined Safaricom in 2010 and replaced the telco’s founding CEO Michael Joseph in August 2010.
(TOP: Safaricom CEO Bob Collymore speaks during the release of the results).
In March 2015, his contract was extended by a further two years, 5 months before it expired in August of the same year, during the release of the firm’s financial results. Prior to this, Collymore had seen his contract extended by another 2 years in 2013.
During the release of the firm’s full-year financial results on May 10, board chairman Nicholas Ng’ang’a said they had decided to retain the current CEO in order to sustain the firm’s growth.
“On the competitive landscape we continue to witness moderate shifts in the form of increased aggressiveness from our competitors. New forms of competition continue to emerge even from non-telco players. We remain confident that we will continue offering our customers superior service and products, and unmatched experience,” said Ng’ang’a, adding:
“Ladies and gentlemen, looking ahead, we remain steadfast in delivering on our strategy growing shareholders’ wealth as we pursue our purpose of transforming lives. This is a long-term play, and is integral to the continued growth of this company… Sustaining this growth is key to the Board. This is why I am very pleased to announce that the Board has decided to extend the contract of our CEO, Bob Collymore, for an additional two years.”
The Safaricom board chair noted that the current CEO had successfully taken the firm through some difficult times, stating thus: “Bob has successfully navigated our company through some of its most difficult years, even as he explored new areas of business that will shape this company’s future in the decades to come. He has our full confidence and support.”
“We continue to focus on building a resilient business that can weather the regulatory and economic forces that are currently shaping the commercial environment. We believe in the vast, untapped potential of the Kenyan economy, and we will leverage increasingly intimate customer insights alongside deep investments in critical technologies to drive a long-term strategy for growth,” Collymore said while commenting on the results.
The telco’s service revenue grew by 14.8% to Kshs 204.1 billion driven predominantly by growth in active users and increased usage of non–voice services mainly M-PESA and Mobile data. Non-voice service revenue accounted for 54.2% of service revenue, recording a growth of 27.3% to Kshs 110.7 billion. Overall, the firm’s voice service revenue now stands at 45.8% of service revenue, growing by 2.9% to Kshs 93.5 billion.
Mobile data revenue, which now accounts for 14.3% of the firm’s service revenue, grew at 38.5% to Kshs 29.3 billion, mainly driven by 18.1% growth in 30-day active mobile data customers to 16.6 million, increased bundle users and smartphone penetration. Fixed data revenue increased by 37.4% to Kshs 5.2 billion attributed to 21.2% growth in fixed service customers.
However, with the contract extension, our earlier post (above), made in mid April speculating about possible CEO contenders from within Safaricom is yet to be proved wrong.