SIMON BROWN ON:
MTN SASOL STEINHOFF
MTN’s* results revealed that almost everything is against the company as HEPS was down just over 10% for the six months ending June. Much is being made of the potential windfall from the lifting of sanctions in Iran, but this remains some way off and management needs to focus on the current issues. The company has 231m subscribers and over R30bn in cash (admittedly that cash figure has been falling) – it is also operating in a space (mobile) that is without doubt a huge part of the future. The geographies it operates in have real challenges but the sector in general and the stock specifically remain attractive, especially relative to MTN’s global peers. One example is Vodafone – which admittedly operates in more profitable developed markets – that has around double the number of customers but a market cap that is some four times larger than that of MTN.