Author: Gugu Lourie

Blue Label Telecoms, which was once a darling of JSE investors, is sinking deeper into trouble as Cell C knocks the JSE-listed group’s earnings. Cell C’s largest shareholder reported on Thursday that core headline earnings for the year ended 31 May 2019 equated to a negative 304.77 cents per share. Headline earnings per share is South Africa’s main profit gauge. The company as expected attributed the bad news to Cell C and impairment of its total investment in the Oxigen India group. The company which used to be regarded as a JSE’s best-kept secret has seen its shares plummet 36% year-to-date…

JSE-listed firm Blue Label Telecoms announced on Wednesday it will sell its shareholding in Blue Label Mobile to DNI 4PL Contracts Proprietary Limited (DNI). In terms of this transaction, Blue Label will sell 85% of Blue Label Mobile issued shares and all claims on loan to DNI 809. The price consideration payable by DNI to Blue Label in respect of the deal is R350 million. DNI will also pay R100 million, which shall escalate at the prime rate of interest plus 2% (compounding annually in arrears) from the fifth business day after the date on which all suspensive conditions  are…

South African venture capital (VC) firms and fund managers invested R1.5 billion channelled towards South African startups in 2018. This is according to SAVCA 2019 Venture Capital Industry Survey released by the Southern African Venture Capital and Private Equity Association (SAVCA), conducted in collaboration with research partner Venture Solutions. Gauteng businesses received the largest share of VC money in 2018 (R658 million), up 38% from 2017. The Western Cape saw an increase in 2018 of 14% in VC investments amounting to R433 million. Kwazulu-Natal (KZN) backed VC business have in 2018 seen a significant increase in activity in comparison to 2017, with…

Vodacom’s boss is on study leave and the chief financial officer (CFO) is acting as CEO of the mobile phone operator, TechFinancials has learned. British mobile phone giant Vodafone, which owns Vodacom, has sent Shameel Joosub to study at Harvard Business School, a reliable source this week told TechFinancials. Another source at the company confirmed that Till Strichert, Vodacom’s CFO has been appointed as acting CEO. However, Vodacom wouldn’t be drawn into commenting the matter. “Vodacom does not comment on internal matters of this nature,” a Vodacom spokesperson said in an email response. Asked when is Joosbub contract was ending, the response was:…

The Independent Communications Authority of South Africa (ICASA) said on Thursday it will, before the end of 2019, publish the Information Memorandum on the licensing process for the International Mobile Telecommunications (IMT) spectrum or what is also referred to as high demand spectrum. This follows the publication of the Policy on High Demand Spectrum and Policy Direction on the Licensing of a Wireless Open Access Network (the Policy Direction) by the Minister of Communications and Digital Technologies. The Information Memorandum is also intended to provide guidance to stakeholders and prospective applicants on the process and criteria to be applied by…

JSE-listed group Blue Label Telecoms woes mount as Cell C continues to negatively impact the company. Blue Label Telecoms, which owns 45% of Cell C, on Thursday informed investors that its earnings will take a knock. The company attributed this to ongoing Cell C woes. Blue Label Telecoms said its earnings for the year to end-May 2019 will take a R6.71 a share knock. It attributed this to Cell C’s trading losses, impairment of its property, plant and equipment, the impact of a de- recognition of its deferred tax asset and the impairment of its total investment. The earnings will…

GRAND BAIE, Mauritius – Twelve-year-old Marika and 10-year-old Annie are swimming in the warm water of the majestic ocean and are ecstatic to see me. They greet me in English, and I warmly respond and say “hi young ones”.  “You can speak English,” Marika exclaims.  French and Creole are the languages most spoken in Mauritius. Annie shyly asks: “How is that possible? You look like a Mauritian.”  Before I can answer, she asks: “Are you visiting here? Where are you from?” “The city of Jo-hustle-burg is my hometown little ones”. I silently say: “Thank you, the greatest writer of our troubled…

Southern Africa Telecommunications Association (SATA) on Friday announced that it was working hard to enable a one flat rate for the process of making and receiving calls overseas. Roaming costs are sky-high for travellers across the Southern African Development Community (SADC) region and is a hindrance when just popping over to a neighbouring country for pleasure or work. SATA chairman and CEO of Mauritius Telecom Sherry Singh said on Friday the organisations finalising its initiative to decrease roaming prices. The initiative is known as ‘Roam like at home’. Singh said he has invited the SATA member countries to sign the…

Southern Africa Telecommunications Association (SATA) on Friday launched a digital sharing platform to address the challenges of knowledge sharing in the region. SATA was founded in 1980 in line with the Southern African Development Community (SADC) Treaty. It regroups companies from the information and communications technology industry. It aims at spearheading regional ICT infrastructure and services developments. Its vision is to become the most dynamic and value-adding organisation that facilitates the building of a prosperous information society for the SADC region. At the launch of the digital sharing platform in Port Louis, SATA chairman and CEO of Mauritius Telecom, Sherry…

South Africa’s first fully digital bank TymeBank is adding up to 3, 500 customers a day as it leverages the use of digital biometric technology to make banking simple and affordable. The bank, which is backed by billionaire Patrice Motsepe, has on-boarded 500 000 customers as at 30 June 2019. TymeBank is owned by African Rainbow Capital (ARC) Financial Services Holdings, a company within Motsepe’s Ubuntu-Botho Investments stable. African Rainbow Capital said on Thursday in a statement that the bank is signing up between 3 000 and 3 500 customers per day, with about 40% of bank accounts being active. “The…