Company news in brief
MTN sticks to medium-term forecast
South Africa's MTN Group stuck to its medium-term forecast yesterday, unlike some other companies, as it posted higher core earnings for the first quarter of 2020.
However, the mobile operator cut its capital expenditure guidance for 2020 to between R21 billion and R22 billion, from R28.3 billion when it reported 2019 results in March.
MTN's rival Vodacom Group on Monday postponed issuing its medium-term forecasts due to the uncertain economic outlook as the coronavirus pandemic unfolds.
MTN’s group service revenue for the three-months ended March 31 rose by 11.1% and earnings before interest, tax, depreciation and amortisation (EBITDA) jumped by 15.6%, the mobile operator said in a statement.
The group recorded voice, data and fintech revenue growth of 6.3%, 26.4% and 26.0% respectively, while digital revenue has returned to growth, increasing by 15.6%. – Nampa/Reuters
SAA administrators won’t sell assets in ‘interim’
Administrators at state-owned South African Airways (SAA) will not sell assets for an interim period without involving the government, a memorandum signed by one of the administrators and the public enterprises ministry showed.
The memorandum, which was seen by Reuters, also said the administrators and the ministry had agreed that the objective of SAA's bankruptcy protection process was to have a restructured SAA or a new company with no reliance on public finances.
A public enterprises ministry spokesman confirmed the memorandum was an authentic document. The administrators were not immediately available for comment.
SAA's administrators, appointed in December to try to rescue the firm, have said previously that a wind-down or liquidation of the loss-making airline were likely outcomes.
The "interim period" during which the administrators will not sell assets without consulting the ministry lasts until June 30 at the latest, the memorandum said. – Nampa/Reuters
Jumia hopes for lockdown boost
Struggling e-commerce platform Jumia Technologies reported an almost 7% fall in first quarter revenue due to supply chain disruptions, particularly in China, but saw lower cash burn and signs that lockdowns were hastening a shift towards online shopping in Africa.
Jumia was the first Africa-focused tech start-up to go public on the New York Stock Exchange and reached a market capitalisation of over US$1.5 billion just days after it listed last April.
But the company has struggled to find its way, and its share price has tumbled some 90% from its peak a year ago.
The latest results, which caught the beginning of the coronavirus outbreak on the African continent, showed the lowest losses in earnings before interest, taxes, depreciation and amortisation in six quarters, at 35.6 million euro.
But revenue fell to 29.3 million euro. China is a key supplier of electronics and mobile phones sold on the platform. – Nampa/Reuters
Mazda profit hits 8-year low
Mazda Motor Corp said annual profit slid to an eight-year low and that the coronavirus pandemic had resulted in a large build-up in its US car inventories, hobbling efforts to improve its cash flow.
Japan's No. 5 automaker refrained from giving an earnings forecast for this business year and confirmed it had tapped lenders for loans to ride out the outbreak which has pummelled car demand worldwide.
Annual operating profit almost halved to 43.6 billion yen (US$408 million) for the year ended March, which includes a 10 billion yen virus-related hit.
Mazda had a negative free cash flow of 92.7 billion yen (US$867.8 million) at the end of March, its fourth straight quarter of negative cash flow, albeit an improvement from a negative 139.3 billion yen at end-December.
It has sought 300 billion yen in loans from Japan's three megabanks and other lenders, a source with direct knowledge of the matter told Reuters last week. – Nampa/Reuters
WH Smith sees book sales surge
WH Smith reported an 85% slump in group sales in April on Thursday, slightly better than its earlier forecast as a 400% rise in online book sales helped offset some of the damage of mass coronavirus closures of its kiosks and stores.
The company, whose newspaper and stationery outlets are a common feature of UK high streets, hospitals and train stations, said it was planning on a phased store re-opening schedule across its international territories, UK travel channels and high street business.
It reported a small dip in headline group profit before tax to 80 million pounds in the year to February, roughly in line with earlier guidance. – Nampa/Reuters
South Africa's MTN Group stuck to its medium-term forecast yesterday, unlike some other companies, as it posted higher core earnings for the first quarter of 2020.
However, the mobile operator cut its capital expenditure guidance for 2020 to between R21 billion and R22 billion, from R28.3 billion when it reported 2019 results in March.
MTN's rival Vodacom Group on Monday postponed issuing its medium-term forecasts due to the uncertain economic outlook as the coronavirus pandemic unfolds.
MTN’s group service revenue for the three-months ended March 31 rose by 11.1% and earnings before interest, tax, depreciation and amortisation (EBITDA) jumped by 15.6%, the mobile operator said in a statement.
The group recorded voice, data and fintech revenue growth of 6.3%, 26.4% and 26.0% respectively, while digital revenue has returned to growth, increasing by 15.6%. – Nampa/Reuters
SAA administrators won’t sell assets in ‘interim’
Administrators at state-owned South African Airways (SAA) will not sell assets for an interim period without involving the government, a memorandum signed by one of the administrators and the public enterprises ministry showed.
The memorandum, which was seen by Reuters, also said the administrators and the ministry had agreed that the objective of SAA's bankruptcy protection process was to have a restructured SAA or a new company with no reliance on public finances.
A public enterprises ministry spokesman confirmed the memorandum was an authentic document. The administrators were not immediately available for comment.
SAA's administrators, appointed in December to try to rescue the firm, have said previously that a wind-down or liquidation of the loss-making airline were likely outcomes.
The "interim period" during which the administrators will not sell assets without consulting the ministry lasts until June 30 at the latest, the memorandum said. – Nampa/Reuters
Jumia hopes for lockdown boost
Struggling e-commerce platform Jumia Technologies reported an almost 7% fall in first quarter revenue due to supply chain disruptions, particularly in China, but saw lower cash burn and signs that lockdowns were hastening a shift towards online shopping in Africa.
Jumia was the first Africa-focused tech start-up to go public on the New York Stock Exchange and reached a market capitalisation of over US$1.5 billion just days after it listed last April.
But the company has struggled to find its way, and its share price has tumbled some 90% from its peak a year ago.
The latest results, which caught the beginning of the coronavirus outbreak on the African continent, showed the lowest losses in earnings before interest, taxes, depreciation and amortisation in six quarters, at 35.6 million euro.
But revenue fell to 29.3 million euro. China is a key supplier of electronics and mobile phones sold on the platform. – Nampa/Reuters
Mazda profit hits 8-year low
Mazda Motor Corp said annual profit slid to an eight-year low and that the coronavirus pandemic had resulted in a large build-up in its US car inventories, hobbling efforts to improve its cash flow.
Japan's No. 5 automaker refrained from giving an earnings forecast for this business year and confirmed it had tapped lenders for loans to ride out the outbreak which has pummelled car demand worldwide.
Annual operating profit almost halved to 43.6 billion yen (US$408 million) for the year ended March, which includes a 10 billion yen virus-related hit.
Mazda had a negative free cash flow of 92.7 billion yen (US$867.8 million) at the end of March, its fourth straight quarter of negative cash flow, albeit an improvement from a negative 139.3 billion yen at end-December.
It has sought 300 billion yen in loans from Japan's three megabanks and other lenders, a source with direct knowledge of the matter told Reuters last week. – Nampa/Reuters
WH Smith sees book sales surge
WH Smith reported an 85% slump in group sales in April on Thursday, slightly better than its earlier forecast as a 400% rise in online book sales helped offset some of the damage of mass coronavirus closures of its kiosks and stores.
The company, whose newspaper and stationery outlets are a common feature of UK high streets, hospitals and train stations, said it was planning on a phased store re-opening schedule across its international territories, UK travel channels and high street business.
It reported a small dip in headline group profit before tax to 80 million pounds in the year to February, roughly in line with earlier guidance. – Nampa/Reuters
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