PER­FECTLY PLACED

Finweek English Edition - - INVESTMENT -

Af­ter it took a share-price pound­ing in 2013, the Ellies re­sults were ea­gerly awaited and, as per a trad­ing up­date last year, they were slightly worse than ex­pected – but that is the na­ture of an en­tre­pre­neur­ial com­pany. The pre­vi­ous pe­riod had been boosted by the Eskom Res­i­den­tial Mass Roll­out (RMR) that wasn’t re­peated, while a weaker rand and con­sumer pres­sure saw rev­enue slightly down with mar­gin and HEPS un­der pres­sure. Dig­i­tal ter­res­trial tele­vi­sion (DTT) is still the kicker here with 11m house­holds own­ing TVs, and al­though many will not be buy­ing the set­top boxes, this will give Ellies another great year or two af­ter the roll-out starts. That is very much the na­ture of Ellies, a solid un­der­pin­ning busi­ness with the oc­ca­sional op­por­tu­nity cre­ated, which it’ll grab with both hands and profit from. One of th­ese op­por­tu­ni­ties may be ar­riv­ing in the shape of re­ports that South Africa will be adopt­ing a new wall plug sys­tem. This will be a slow process, but Ellies is per­fectly placed to sup­ply the new wall sock­ets that we’re all go­ing to need in the fu­ture.

Ellies Hold­ings

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