Connect with us

VenturesNow

MTN South Africa records high profit despite poor economy

Published

on

MTN Group’s South African unit on Wednesday said it reported high profit and subscriber growth in 2021.

The tech giant disclosed that its subscriber numbers jumped by three million to 35 million as “churn stabilised” and as the company reported higher gross additions.

According to the company, service revenue climbed by 6.5%, while data revenue leapt 13.1%. Earnings before interest, tax, depreciation and amortisation (Ebitda) – a measure of operational profitability – increased by 6.1%, although the Ebitda margin contracted marginally to 38.9%.

Data consumption accelerated in 2021, according to the yearly report, with data traffic growth of 58.3% and a 12.5% increase in the number of customers actively using the Internet, MTN said.

Capital expenditure rose to R10.4-billion when measured using IFRS 16 reporting standards (or R9.1-billion under IAS 17 rules), an increase over 2020’s investment.

“MTN South Africa delivered very strong overall results in 2021, on sustained commercial and operational execution across all business units. The [operating company] maintained a solid growth trajectory in all core businesses, namely the prepaid consumer business unit (CBU); the post-paid CBU; the enterprise business unit; and the wholesale business,” MTN Group said.

“This performance was achieved against a challenging macroeconomic and consumer backdrop and increasing unemployment rates in industries such as hospitality and tourism. MTN South Africa was also impacted by shifts in customer spending patterns as lockdown restrictions abated and the movement of people increased. This intensified competition for share of the consumer’s wallet.”

Still, the company’s 6.5% service revenue growth exceeding the medium-term target and was supported by healthy performances by the prepaid CBU (up 2.1%), the post-paid CBU (up 4.5%), enterprise (up 16.8%) and wholesale (up 21.7%).

VenturesNow

Somalia gives foreign banks licence to operate in decades

Published

on

The Somali government has announced the licensing of foreign banks for the first time in over two decades six weeks after President Hassan Sheikh Mohamoud was sworn into office following an elections that took years to conduct following a lingering political crisis.

The announcement which was made on Monday by the governor of the Central Bank of Somalia (CBS) Abdirahman Mohamed Abdullahi, said the war-ravaged country has granted banking licenses to two foreign institutions to operate in the country after President Mohamoud had promised to open the country to international investment during his campaigns for the elections.

The first foreign banking institutions to benefit from the decision are Egyptian bank, Banque Misr, and Turkish bank, Ziraat Katilim, who have been allowed to operate in Somalia.

“The review of the applications of these two banks has been the subject of a lengthy process of several months.

“These are two strong banks that will add value to the development of Somalia’s financial sector and contribute to the growth of our economy,” the CBS governor said

Ranked one of the poorest countries in the world by the World Bank, the average Somalian lives on less than $1.90 a day as the country struggles to recover from decades civil war and and opening its doors to foreign investments is seen as President Mohamoud fulfilment of his pledge to improve the economic situation and provide basic banking services to the population.

Continue Reading

VenturesNow

Egypt Suez Canal announces record $7bn profit in 2021-2022

Published

on

The management of the Egyptian Suez Canal has announced a record profit of $7 billion for the 2021-2022 fiscal year, which it said was as a result of repeatedly raising transit fees for ships through the crucial passage for world trade.

The Suez Canal Authority (SCA), said on Monday that between July 2021 and June 2022, about 1.32 billion tonnes of cargo transited through the canal, providing a $7 billion rent in transit fees, which is the highest in the history of the SCA, its Executive Chairman, Admiral Osama Rabie, said.

Rabie added that the Canal was able to increase its profit by 20.7% compared to the previous financial year where it made €5.5 billion.

The Suez Canal handles about 10% of the world’s maritime trade and is one of Cairo’s main sources of foreign currency and despite the war in Ukraine and the rise in the oil price which has affected shipping, the canal also recorded its highest monthly turnover in April, valued at €605 million according to Rabie.

“The international crises have demonstrated the importance of the Suez Canal for the stability of global supply chains,” Rabie said.

He added that the Canal has contributed significantly to the growth of the North African country’s economy which has been caught between inflation of over 15% and a recent devaluation of the pound by nearly 20%, which had increased transit fees for oil and gas shipments by 6% in February and then by 5 to 10% in March.

Continue Reading

EDITOR’S PICK

Politics2 hours ago

Tunisia President Saied dares opposition, defends new constitution despite criticism

Tunisia’s President Kais Saied has defended his proposed new constitution despite widespread criticism and protest by opposition figures, saying the...

Politics2 hours ago

Sudan’s junta leader, General al-Burhan, promises to withdraw army from civilian government

Leader of Sudan’s military junta, General Abdel Fattah al-Burhan, has promised he will withdraw the army from further participating in...

Metro3 hours ago

Nearly €20 million in contention as Chad arrests top oil sector, banking officials

An investigation into embezzlement at the national oil company in Chad has led to the arrest of a group of...

Politics7 hours ago

Rwanda/Congo DR: Kagame, Tshisekedi to meet in Angola. Will they finally bury the hatchet?

The leaders of two African countries that have been at loggerheads in recent months, Democratic Republic of Congo’s President Felix...

Metro17 hours ago

326 Mozambican Police officers dismissed for involvement in crimes since 2020

The Mozambican Police Force (PRM), has dismissed 326 officers from the force since 2020 over their involvement in different crimes...

VenturesNow17 hours ago

Somalia gives foreign banks licence to operate in decades

The Somali government has announced the licensing of foreign banks for the first time in over two decades six weeks...

VenturesNow18 hours ago

Egypt Suez Canal announces record $7bn profit in 2021-2022

The management of the Egyptian Suez Canal has announced a record profit of $7 billion for the 2021-2022 fiscal year,...

Metro19 hours ago

Egypt: First electrified light rail transit (LRT) begins trial

North African country, Egypt has recorded a great feat in its transportation sector as it first electrified light rail transit...

Metro20 hours ago

President Kagame doesn’t mind if Rwanda soldiers are excluded from regional force on Congo’s demand

President Paul Kagame Rwanda has said he doesn’t mind if his country is excluded from a regional military force battling...

Politics21 hours ago

Sudan/Ethiopia in view as IGAD summit holds in Nairobi, Kenya

The 39th extraordinary meeting of the Inter-Governmental Authority on Development (IGAD) will on Tuesday in Nairobi. The heads of state...

Trending