Equity Analysis /

Safaricom: SAFARICOM: Downgrade to Sell on M-Pesa slowdown

    Tracy Kivunyu
    Tracy Kivunyu

    Equity Research Analyst, Telecoms

    Tellimer Research
    4 May 2018
    Published byTellimer Research
    We have cut our FY 18 EPS and EBIT forecasts by 7% and 8%, respectively, to KES1.24 and KES73bn, as we factor in a slowdown in M-Pesa and voice revenue following the impact of the boycott and the slowing economic environment in H2. We see downside risk to our forecasts from the implementation of dominance regulations on data revenue as well as the proposed increase in mobile money transaction taxes on M-Pesa revenue.