Increased business from 723 telecommunication towers acquired by the American Tower Corporation (ATC) from loss-making Telkom Kenya pushed the American firm’s earnings from the region to Sh18 billion in the first six months of the year, the company says.
The US publicly held company, which owns and operates wireless and broadcast communications infrastructure in several countries, in May last year reached an agreement to acquire the towers from troubled Telkom Kenya for an undisclosed amount.
The acquisition was made through its recently formed local subsidiary ATC Kenya.
In its recent filings, the US firm said the new assets helped boost its half-year earnings by five percent.
“Revenue in the company’s Europe, the Middle East, and Africa (EMEA) segment increased five percent year over year to $175 million (Sh18 billion) thanks to a 7.2 percent increase in organic tenant billings and the acquisition of some towers in Kenya,” said the ATC in the filing.
Acquisition of the assets gave the US multinational a presence in Kenya, nearly a decade after making its foray into East Africa through similar acquisitions in Uganda and Tanzania.
“This represents American Tower’s 17th market globally and our fifth in Africa … We look forward to helping expand the reach of mobile broadband throughout the country. Kenya is a very attractive market, and we have high expectations for its long-term growth potential,” said ATC President of EMEA and Latin America William Hess at the time.
While Telkom did not disclose the value of the transaction, the deal was expected to enable third-placed Telkom Kenya, which is readying for a joint operation plan with Airtel Kenya, to use the proceeds to strengthen its balance sheet.
Last week, Telkom Kenya announced plans to lay off 575 workers, equivalent to about 72 percent of its workforce, ahead of its proposed merger with Airtel Kenya.
The staff cuts signalled a remarkable fall of the former telecoms behemoth whose strategic assets straddle Kenya’s 47 counties.
Telkom, which is majority-owned (60 percent) by UK-based private equity firm Helios Investment Partners and 40 percent by the Kenya government, employed thousands of workers in its heyday.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
