AccessKenya Finally Returns to Profitability After Long Hiatus
Corporate Data and Internet Solutions Provider, AccessKenya Group, announced a Sh109M after tax profit for the 2011 financial year. This is surprise turnaround from the Sh8M loss reported in 2010. The company’s revenue grew by just under 2% to stand at Sh 1.73 billion.
With the entry of the well heeled giant like Safaricom in the corporate data and managed services, this fete is an impressive achievement by Access Kenya. Not much has been revealed on how the company managed to keep its expenditures down but it is suspected that the company might have negotiated with its suppliers for lower bandwidth and managed solutions rates.
Company Chief Executive Officer (CEO) Jonathan Somen attributed the improved performance to “significantly increased internet subscriptions and a highly robust network that has spurred customer growth owing to its reliability in the market.”
Mr. Somen added
“Our corporate leased lines grew from 3,900 to 4,700 compared to the same period in 2010. This is an indication that we remained steadfast in our core business – corporate data and Internet solutions. More and more customers have realized that we have the best network and are signing up for service.”
Mr. Somen also said that the company was enjoy the benefits of restructuring bandwidth costs, in particular the migration of customers onto its metro fibre network. ”
The cost of sales at the company dropped to Sh357.4 million from Sh558.9 million, reflecting a 36 per cent drop within the year. The company’s share value has dropped by more than 60% in the last one year to KSh 4.10 as of Thursday. The IPO share price was Ksh 10. The company is however looking to win the loyality of its shareholders by a bonus issue where every shareholder will earn an extra share for every 20 held.
The company shed more than 25 of its middle level personnel in 2011 through a silent restructuring program. AccessKenya was the first Kenyan ICT company to be listed in the Nairobi Stocks Exchange.