NAIROBI: Kenya<\/a>'s biggest telecoms operator Safaricom<\/a> lowered on Wednesday its full-year forecast for earnings due to its investment in Ethiopia<\/a>.
The firm, which is part owned by South Africa's Vodacom<\/a> and Britain's Vodafone, expects earnings before interest and taxes (EBIT) to come in at 97-100 billion Kenya shillings ($896.86 million), its Chief Executive, Peter Ndegwa<\/a>, said.
The group had initially issued a guidance of 105-108 billion shillings. Excluding its investment in Ethiopia, where it plans to launch services mid-next year, the core earnings will be 107-110 billion shillings, Ndegwa said.
Core earnings for the first half to the end of September rose by more than a quarter to 57.9 billion shillings, said Dilip Pal, the firm's chief financial officer.
During the first half, service revenue increased by 16.9% to 138.4 billion shillings, buoyed by a 45.8% jump in revenue from its financial business M-Pesa, Pal said.
Safaricom led a consortium that secured Ethiopia's second telecoms operator license in May, by paying $850 million.
It has been putting together a small team to spearhead the launch of the network next year, but it is now focusing on ensuring the safety of those workers, Ndegwa said, after conflict between the government and rebellious northern forces intensified in recent weeks.
He added, however, that they were hoping that the crisis in Ethiopia will be resolved soon, enabling them to tap the vast opportunities offered by that market.
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