COMPANY NEWS IN BRIEF
MTN says earnings could still riseMTN, South Africa's second biggest mobile operator, said on Monday earnings could rise as much as a tenth in its half-year to end June, but it is feeling the pressure of hyperinflation in key markets, as well as currency devaluations.
Headline earnings per share are expected to be in the range of 506c to 557c, from 506c previously, the group said in a brief update, weighed down mostly by 169c in foreign exchange losses, more than double the prior comparative period.
MTN, valued at almost R261 billion on the JSE, had generated more than R10 billion in headline earnings in its prior half-year, a profit measure that excludes certain items to provide a gauge of the underlying performance of a business.
The company had seen significant currency volatility during the period, including rand depreciation against the dollar and the liberalisation of forex rates in Nigeria. In mid-June, Nigeria unified its multiple exchange rates, while it also scrapping a popular, but expensive, petrol subsidy, moves that led to a sharp fall in the value in the Naira, but which have been welcomed by many investors.
MTN Nigeria, meanwhile, reported on Monday that it had a challenging first half, with energy, food, and general inflation at elevated levels. Inflation in Nigeria accelerated for a sixth-consecutive month in June, reaching 22.8%.-Fin24
SA watchdog hits Google, Takealot, Uber
South Africa's competition watchdog has demanded that Google, Uber Eats, Takealot and Apple take a range of steps to encourage competition from smaller companies.
This includes that Google must provide R330 million in advertising credits and other support to local small businesses, while Takealot must change its site to increase competition from small suppliers. Online property sites and car sellers must cut listing prices for independent agencies and dealers.
On Monday, the Competition Commission released its final report into the dominance of online retail platforms in the country. The inquiry was launched more than two years ago.
The commission found that Google must provide R180 million in advertising credits for smaller businesses, as well as allowing greater prominence for smaller online platforms on the tech giant's search engine.
Google will also have to provide a further R150 million in training, product support and other measures for small and medium enterprises and black-owned online companies to "offset the competitive disadvantages faced on Google Search".-Fin24
IPF mulls new stone-inspired name
Investec Property Fund (IPF), which oversees R35 billion in assets, is asking shareholders to approve a name change to Burstone Group, in reference to the name of a stone used to mill grain into flour.
IPF, valued at more than R6 billion on the JSE, said further details on the name change will be given after a shareholder vote at the end of August, but said it represents a story of transformation of latent potential into value.
The proposed name, unveiled through a SENS announcement for a circular, follows the successful internalisation of the fund’s asset management functions across South Africa and Europe, which was previously undertaken by Investec, it said in a statement.
Burrstone, or Buhrstone, is a type of tough, fine-grained rock suitable for making millstones. Shareholders gave their approval in May and competition approval was granted in June. Investec retains a 24% stake in the business.
"The new name reflects our vision to be a dynamic and agile fully integrated international real estate business, with a strong heritage, that has the unique ability to identify potential and unlock value for our shareholders and partners," said CEO Andrew Wooler in the statement.-Fin24
G7 fails to interdict Eskom from applying
Renewable energy company G7 has failed to interdict Eskom from applying its new grid access rules. Had the interdict been granted, the progress of new energy projects, both those planned by the private sector and those commissioned to supply Eskom, would have stalled.
Judge Basheer Vally dismissed the application for an interdict, with costs, on Monday. Part B of the case - on the substantive issue of Eskom's authority to change grid rules - is still to be argued.
South Africa urgently needs to bring new generation capacity onto the grid to fill the supply and demand gap. Privately initiated projects are the fastest way of adding more megawatts to the system, but these, too, need to connect to the Eskom transmission grid.
Eskom changed the rules on 27 June due to concerns that some developers were "hogging" the grid, and although they had been given access, they were not ready to proceed with their projects. The grid has become increasingly constrained, especially in areas optimal for renewable energy.
G7 argued that the change from a first come, first served basis to a first ready first served arrangement placed the two wind farms it has in development in jeopardy.-Fin24