Author: Gugu Lourie
Spar announced on Wednesday that it had delivered a commendable trading performance in the six months to the end of March 2023 in a challenging environment. Group revenue increased by 7,9% to R72,9 billion. It added that over the past 12 months, all regions have come under significant inflationary cost pressures. “The cost pressures, coupled with SAP software go-live challenges at the KwaZulu-Natal distribution centre (KZN DC) and subsequent loss of turnover during the latter half of the period, resulted in a decline in operating profit of 17.5%to R1,5 billion,” Spar said. “Due to rising interest rates across all geographies,…
JSE-listed retailer Spar said South Africa experienced unprecedented levels of electricity loadshedding which directly is impacting trading performance and profitability of its retailers. Higher levels of loadshedding are expected to impact retailer profitability due to the additional energy costs associated with back-up solutions required during loadshedding hours, said the retailer. “Our retailers have experienced a significant increase in operating costs, primarily driven by the increased cost of diesel required to run generators during the higher levels of loadshedding, coupled with higher repairs and maintenance costs, and product wastage, as generators occasionally fail under extended periods of usage,” said Spar. Spar estimates…
South African supper app VodaPay, which is operated by Vodacom, has launched a feature that makes the platform to look like a bank. Two new Deposit and Send Money services have been added to the VodaPay super app, according to Vodacom Financial and Digital Lifestyle Services. “VodaPay’s new Deposit and Send Money services support our intention to accelerate digital and financial inclusion. Both banked and unbanked users can deposit and/or send money from their VodaPay Wallet, securely, cost-effectively and instantly. By building broader, more convenient offerings onto VodaPay, such as deposit and cash-out networks, we aim to enable more people…
South Africa’s Telkom announced today that it has come through a year marred by unparalleled levels of loadshedding and an alarming number of incidents of theft and vandalism targeting network infrastructure. Despite these challenges, Telkom said its team replaced over 5 000 backup batteries and undertook repair work on over 1 600 sites, which was crucial in restoring services and maintaining network stability. The partial state-owned entity added that it had spent R655 million on diesel and back-up batteries in the year to end-March 2023 to ease Eskom’s load shedding on its business. Cumulatively, Telkom said there were 5 585…
Telkom has formally appointed advisors to drive the process to seek a strategic equity partner for BCX, its limping IT business that has been losing money for a few years now. BCX was founded by Benjamin and Isaac Mophatlane in 1996, and was later acquired by Telkom in 2015, in a deal worth R2.6 billion. Telkom announced on Tuesday that BCX had a challenging year but managed to maintain stable revenue levels at R14.2 billion in the year to end-March 2023. The company said the performance was driven by a 9.1% growth in the IT business, which was offset…
Telkom announced on Tuesday that the disposal of its masts and towers business, Swiftnet, is at an advance stage. Telkom also announced that Swiftnet continued commercialising its productive portfolio and saw marginal revenue growth of 0.9% to R1 304 million in the year to end-March 2023. The company said this was driven by construction of 66 additional towers and eight new in-building coverage solutions (IBS) sites. “Continued modernisation by mobile network operators (MNOs) on our sites, coupled with new base station sites and the deployment of 5G by our clients, grew revenue from continuing customers by 10.3%, mitigating the impact…
Telkom Mobile has increased its subscriber base by 7.8% to 18.3 million customers in the year to end-March 2023, Telkom announced on Tuesday. The mobile service revenue growth of 1.8% was supported by the growth in subscribers. “The post-paid strategy paid off as the post-paid base grew by 11.0% to reach the 3 million customers. The pre-paid base grew by 7.2% to 15.3 million,” said Telkom. “We extended our network footprint, using the newly acquired spectrum to enhance LTE coverage and launch 5G services,” says Serame Taukobong, Telkom CEO, said. “This benefited the mobile broadband subscriber base, which grew 9.2%…
Inflationary pressures and increased operational costs plunged South Africa’s Telkom full year headline earnings per share (HEPS) by 76.6% to fell to 134.6 cents from 575.3 cents in the previous year. The company also said HEPS – South Africa’s main profit gauge – was impacted by lower EBITDA (earnings before interest, tax, depreciation and amortisation). “This was due to a 19.8% decline in EBITDA and a 9.5% increase in depreciation, amortisation, impairments and write-offs*, partially offset by a lower tax expense compared to the prior year,” said Telkom. The company said it was also attributable to the impact of accelerated…
The Independent Communications Authority of SA (ICASA) said on Friday that it intends to issue a tender to appoint a consultant to assist it in the licencing of the International Mobile Telecommunications (IMT) spectrum. ICASA said the consultant’s duties will include conducting an auction in several IMT bands. The auction of the IMT spectrum is expected to be completed in 2024. The amended Radio Frequency Spectrum Regulations mandate the market-based approach for efficient spectrum management. This includes the use of an auction process for licencing spectrum where demand exceeds supply. “This important process seeks to ensure universal availability of broadband…
JSE-listed retailer TFG, formerly known as The Foschini Group, said TFG Africa conservatively estimated to have lost about 360,000 trading hours in the 12 months to 31 March 2023 due to Eskom’s load shedding. However, as previously reported, the retailer estimates the actual impact to be more than double this figure (i.e. approximately 730,000 lost trading hours) as customer demand is significantly dampened by the associated disruption and inconvenience with reduced customer footfall before, during and immediately after load shedding periods. “We estimate the financial impact of load shedding to have reduced TFG Africa’s retail turnover by in excess of…
JSE-listed retailer TFG, formerly known as The Foschini Group, today announced a 6.6% increase in online retail revenue for the year ending March 2023. The retailer said online retail sales contributed 9.1% to the group’s total sales. TFG Africa’s retail sales increased by 17.2% compared to the same period in the previous financial year. The retailer added that TFG Africa’s online retail sales increased by 33.2% and now contribute 3.5% to TFG Africa’s total retail sales. TFG Africa’s outlet retail turnover, increased by 16.7% and now contribute 96.5% to TFG Africa’s total sales. “This region experienced heightened consumer pressure, unprecedented…
TymeBank is onboarding more than 300 000 customers a month in both South Africa and the Philippines, according to its majority shareholder, African Rainbow Capital (ARC), which is owned by billionare Patrice Motsepe. ARC said Tyme (including TymeBank and GoTyme) has an annual revenue run rate of over R1.9 billion. The company added that across its two markets – South Africa and the Philippines – the business is growing at a pace of 300,000 new customers a month as it works to provide consumers, particularly the underserved and financially excluded portion of the population, quality financial services. TymeBank now serves…
Volvo Car South Africa has confirmed the freshly revealed EX30 is destined for local roads, while also announcing the brand-new fully electric SUV’s highly anticipated starting price. That figure looks set to render the EX30 one of the most affordable full-size electric vehicles (EVs) in South Africa. Having just made its global premiere, the new small SUV represents the cornerstone of Volvo’s electrification growth ambitions. It debuts as the fastest-accelerating Volvo ever, completing the 0-100 km/h sprint in a mere 3.6 seconds in 315 kW Twin Motor Performance guise. The extended-range version of the Single Motor (rear-wheel drive) powertrain, meanwhile,…
Discovery Bank today announced a partnership with Rubicon, a trusted industry leader in solar solutions. This partnership will offer savings to Discovery Bank clients on high-quality solar and back-up power services for their homes. This reflects the Bank’s commitment to providing its clients with trusted, convenient, and flexible solutions. Hylton Kallner, CEO of Discovery Bank, says,” While South Africans are resilient, the increased and ongoing interruption of electricity impacts all aspects of our lives and drives a need to find alternative ways to power our homes. We’re pleased to launch a financing solution that enables our clients to embrace solar,…
There is good news for drivers on Wednesday as the price of petrol and diesel will be dropping. The Minister of Mineral Resources and Energy, Mr Gwede Mantashe, announces the adjustment of fuel prices based on current local and international factors with effect from the 7th of June 2023. South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors. International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, e.g. shipping costs. The main reasons for the fuel…
inq. Group today announced the appointment of seasoned industry leader Glad Dibetso to succeed Nick Reed. Dibetso will become CEO Designate from 1 July 2023 working alongside Reed who will remain on as part of the transition process. The move is part of the Board approved succession plan. inq. recently completed its acquisition of Syrex, a provider of hyperconverged cloud technology solutions, adding South Africa to its footprint across the Continent. Dibetso hopes to continue to bolster inq. to become a truly pan-African business, consolidating its traditional connectivity business and accelerating EdgeDock, inq.’s unique digital service offering. Dibetso said, “I…
In a partnership aimed at making it easier and more cost-effective for customers to watch their favourite local and international blockbuster movies and series, MTN subscribers can now sign-up or switch to Viu Premium for only R69 per month. Along with Viu Premium, subscribers will also receive a 3GB MTN streaming data bundle, valid for 30 days, every 30 days. This allows a customer to watch up to 12 hours of Viu’s premium-rated local and international movies and series each month. Customers need to simply add the subscription to their monthly account, or pay with their airtime, to enjoy their…
Scatec ASA today closed the previously announced transaction to divest the Upington solar plants in South Africa. Scatec, a renewable energy company in emerging markets, is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange The gross consideration for divestment of Scatec’s 42% equity-share in the 258-megawatt (MW) plants is R973 million (NOK 546 million). The company said as previously communicated the proceeds will be recycled into new investments within renewable energy. “We are very pleased to secure a value accretive transaction, in line with our strategy to optimise our portfolio and recycle capital. South Africa remains a…
JSE-listed grocer Spar today announced that the unprecedented power cuts had a direct impact on the trading performance and profitability of its retailers. The retailer said higher power cuts will impact retailers’ profitability due to the additional energy costs associated with the back-up solutions required during the power cuts. “Our retailers have experienced a significant increase in operating costs, primarily driven by the increased cost of diesel required to run generators during the higher levels of loadshedding, coupled with higher repairs and maintenance costs and product wastage, as generators occasionally fail under extended periods of usage,” the company said. Spar…
The FinTech division of JSE-listed retailer Pepkor reported a decline in revenue in the six months to March 31. Pepkor told investors today that its FinTech business reported a 7.8% drop in revenue to R3.7 billion in the first half of the year. The company operates its FinTech division through Flash and Capfin. Pepkor attributed the decline in revenue at its FinTech business to lower revenue recognition at its Flash business. The retailer said revenue from the FinTech segment contributed 9% to total revenue of R40 billion for Pepkor. Pepkor said the Flash business had performed well, increasing profitability by…
Nkwe Platinum hosted a ceremony today to hand over its Social and Labour Plan (SLP) Water Supply Projects to the Sekhukhune District Municipality. The event that marks the completion of Nkwe Platinum Limited’s SLP water supply projects within its mining communities of Garatouw, Maandagshoek, De Kom and Hoepakrantz, which fall under the Makhuduthamaga and the Fetakgomo-Tubatse Local Municipalities. The projects were initiated by Nkwe Platinum Limited to provide access to clean and safe drinking water to communities and livestock surrounding the Zijin Garatau Platinum Mine. A total of 31 boreholes were drilled and/or equipped for the water supply projects across…
Mobile technology has transformed Africa over the past two decades, enabling the continent to leapfrog fixed-lines and join a global digital economy. It has made the internet accessible to nearly everyone, transforming how we live, learn, work, communicate and play. It has become one of the most important economic sectors, catalysing significant job creation and development. For Africa Day 25 May, TCL shares how some facts and numbers about how mobile technology is transforming sub-Saharan Africa. Mobile penetration is close to 50% Vast distances and underdeveloped infrastructure meant a telephone line was a luxury reserved for the rich in Africa…
The Independent Communications Authority of South Africa (ICASA) has officially opened the lower 6GHz spectrum band for the provision of Wi-Fi services. The spectrum band will benefit wireless internet service providers. The lower 6GHz frequency band refers to the radio frequency range of 5925 – 6425 MHz, as allocated in the National Radio Frequency Plan. “Annexure B of Radio Frequency Spectrum Regulations, 2015, consists of a list of radio apparatus, the use or possession of which does not require a radio frequency spectrum licence,” said ICASA. “The authority has now incorporated the key lower 6 GHz frequency band (from 5…
Eskom has announced that it will implement Stage 4 and 5 load shedding until further notice. This after breakdowns occurred at several of the power utility’s stations overnight. Stage 4 will be implemented between 5am and 4pm while Stage 5 will commence from 4pm to 5am every day. “Over the past 24 hours, a generating unit each at Duvha, Kriel, Majuba, Medupi and Tutuka power stations were returned to service. “In the same period, a generation unit each at Arnot, Camden, and two generating units at Kriel power stations were taken out of service due to breakdowns. Furthermore, the delay…
The Chairperson of the University of Cape Town Council, Babalwa Ngyonyama, has resigned from her position with immediate effect. In a statement on 22 May, Ngyonyama said the decision to resign from her position did not come easily to her, but was taken after “careful consideration and thorough deliberation” and taking into account the current circumstances of her well-being and health. Last year, the UCT Council decided to set up an independent investigation panel to investigate issues of university governance. The panel consists of Judge Lex Mpati (chair), Judge Azhar Cachalia, Dr Bernadette Johnson and Dr Patricia Hanekom. Ngonyama’s resignation…