Information flow a concern
MTN finally issued a real update detailing its expected HEPS – the figure is expected to be between 210c and 230c. This is lower than the market was expecting and well down from the 746c in the 2015 financial year, which was the last year before the Nigeria issue overwhelmed the telecoms giant. At around 12 000c, those who like the company have a good entry price. As I have written before, I do not like the business model as MTN needs to convert into a data utility and it’ll be a painful process. But of more concern is that I’d hoped that new management would treat shareholders better in respect of important information. But the first Sens trading update suggests that maybe the old thinking of less is better still prevails, and this is very bad for shareholders. We need a free flow of information in order to make proper, informed decisions. ■ *The writer owns shares in Shoprite and Capitec.