Companies in the news!
**MTN Group Shows Resilience in Q3 Despite Economic Challenges**
MTN Group reported revenue of R127.37 billion for Q3 FY24, down 18.5% but up 12.9% in constant currency. The company’s fintech and data revenue surged by 28.9% and 21.3%, respectively, driving service revenue growth. Subscriber numbers increased to 288 million (+1.6%), with active data users growing 7.4%. While EBITDA fell 35%, constant currency growth of 3.4% was supported by cost-saving initiatives, including Nigerian tower lease renegotiations. MTN reaffirmed its medium-term outlook and dividend guidance.
**Vodacom Faces Currency Pressures But Sees Financial Services Growth**
Vodacom Group delivered interim revenue of R73.5 billion (+1% YoY) with service revenue rising 9.9% on a normalised basis. Financial services grew by 7.8%, contributing 11.4% to group revenue. In South Africa, service revenue increased by 1.3%, while international operations were hit by currency headwinds. Vodacom paid a dividend of 285c per share despite HEPS falling 19.4% to 353c.
**Telkom Boosts Adjusted Earnings Amid Restructuring Costs**
Telkom’s voluntary trading update highlighted adjusted HEPS growth of 5-15% YoY (210.2c-230.2c), supported by robust mobile and fibre data revenue. The company reported one-off charges, including R451 million for terminating a retirement fund obligation, which impacted reported results but were excluded from adjusted earnings.
**Harmony Gold Posts Strong Cash Flow in Q1 FY25**
Harmony Gold’s revenue rose 23% YoY to R18.125 billion, with operating free cash flow up 60% to R5.179 billion. Gold production was flat at 13,131kg, while all-in sustaining costs (AISC) increased by 14% to R963,310/kg. The Mponeng mine outperformed, with production up 28%, offsetting weaker output at Hidden Valley. Harmony continues to advance growth projects, including Wafi-Golpu negotiations and life-of-mine extensions at key mines.
**Gold Fields Increases Production and Cuts Costs in Q3 FY24**
Gold Fields reported a 12% increase in attributable gold production to 510,000 oz, driven by improved performance at key operations. All-in sustaining costs fell 3% to $1,694/oz. The company reduced net debt to $1.123 billion while maintaining full-year production guidance of 2.05-2.15 Moz.
**Omnia Holdings’ Mining Segment Drives Interim Growth**
Omnia reported a 17% increase in operating profit to R980 million for H1 FY25, with revenue up 5% to R10.9 billion. The mining segment saw 15% revenue growth and an 18% rise in operating profit, while agriculture posted a 27% increase in operating profit despite weather challenges. The chemicals division faced competitive headwinds, posting an operating loss.
Companies in the news!
**Life Healthcare Earnings Surge on Asset Disposal**
Life Healthcare recorded HEPS growth of 69.4-77.3% (149.4-156.4c), bolstered by a R2.8 billion gain from the sale of Alliance Medical Group. Revenue grew 12-13%, driven by Life Molecular Imaging, which saw revenue soar 180%.
**Woolworths Food Drives Group Turnover Growth**
Woolworths reported group turnover growth of 6.5% for the 18 weeks to September 2024, led by a 12.1% rise in food sales. Online sales also performed well, with food and fashion/beauty/home segments both reporting increases of over 36%. Fashion, beauty, and home grew by 3.5%, while Country Road Group saw a decline.
**Raubex Achieves Record Earnings Growth in H1 FY25**
Raubex delivered a strong interim performance with EPS up 48.2% YoY to 286c and revenue rising 29.7% to R10.95 billion. The group’s order book remains robust at R24.5 billion, and cash generation more than doubled to R1.54 billion, driven by diversified infrastructure and mining operations.
**TFG Expands Portfolio Amid Mixed Results**
The Foschini Group (TFG) acquired White Stuff UK for £51.7 million during a challenging first half. Revenue declined slightly to R28 billion (-1.4%), while HEPS fell 5.6% to 371.6c. Despite flat sales in Africa, TFG saw online revenue grow by 9.9%. A dividend of 160c per share (+6.7%) was declared.
**Emira Property Fund Reports Stellar Profit Growth Amid Revenue Dip**
– **HEPS** skyrocketed to 213.26 cents (+2,828.9%).
– **EPS** surged to 300.70 cents (+1,624.1%).
– **Revenue** fell slightly to R928.6M (-1.7%).
– Dividend increased to 62.39 cents/share (+1.1%).
Strong local and US portfolio performances, plus Polish investments, drove the gains despite prior challenges.
**Brait Achieves 60% HEPS Growth with Virgin Active Leading Revenue Gains**
– **HEPS** jumped 60% to 200 cents; **EPS** up 50–60%.
– Virgin Active revenue grew 16%, Premier increased 3.7%, but New Look revenue dipped 3.5%.
– Recapitalization reduced debt by R750M, with maturity extended to Dec 2027.
Brait’s diverse portfolio boosts results, while New Look battles tough UK conditions.
**Stor-Age Delivers Steady Growth Despite HEPS Decline**
– **HEPS** dropped 5.8% to 139.85 cents, but **EPS** soared 137.4% to 181.46 cents.
– **Revenue** increased to R649.3M (+8.1%).
– Dividend declared at 57.16 cents/share.
SA and UK rental income grew by 10.8% and 6.8%, respectively, with expanding occupancy and acquisitions fueling the results.
**Premier Group Posts 32% HEPS Growth on Strong Operational Gains**
– **HEPS/EPS** climbed 32.4% and 34.2% to 438 cents.
– **Revenue** rose to R9.7B (+3.7%), with **EBITDA** up 13.5% to R1.2B.
– Operating profit jumped to R945M (+17.3%).
Premier’s focus on cost efficiency, higher margins, and asset investments supports ongoing growth.
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