Safaricom House along Waiyaki Way, Nairobi. [Photo/The Star.]
Dyer and Blair head of research, Ms Linet Muriungi has said that the political action by the opposition coalition, NASA to boycott Safaricom services has no effect in the long run since they expect the revenue to remain on course.
In an interview with, Business Daily, Ms Muriungi said that the slight drop in the company's share price is due to the company's reorganization after the just released first half results where the telecommunication giant recorded a net profit of 26.5 billion shillings.
"In our view, the slight drop is due to a price correction after release of first half results and precisely because the 9.5 percent year on year profit growth was lower than anticipated," Ms Muriungi said as quoted by the Business Daily.
She however said that, in the short run the number of subscribers is likely to drop though with a narrow margin. This is because those leaving account for low value monthly credit usage than among premium customers who account for the large percentage of the telecom's revenue.
"We may however see subscriber growth either stabalize or soften marginally in the short term, where the growth in subscriber numbers is offset by those leaving," she added.
Safaricom is among the three companies that NASA Coalition led by Raila Odinga has asked it's supporters across the country to boycott it's services for an alleged foul play in the nullified August 8th presidential election.