Vodacom revenue surges but Ellies on the rocks as deal fails

VODACOM reported a 26.8% rise in revenue to R38.9bn for the three months to December, lifted by the acquisition of Vodafone Egypt. Customers across all its operations including South Africa, Lesotho, Mozambique and Kenya reached 200-million, with more than 75-million using a financial service. Revenue from financial services including MPesa rose 31% to R3.4bn.

ASTRAL Foods, South Africa’s biggest poultry producer, expects profit to bounce back at least 300% in the six months to end-March, benefiting from the low base of the matching period a year ago, when the frequency and higher stages of loadshedding wreaked havoc on its operations. headline earnings per share are forecast at R6.54 compared with R1.62 a year ago.

TRANSACTION Capital will unbundle pre-owned vehicle unit WeBuyCars and list it on the stock exchange, a move that will help the group reduce debt incurred by its subsidiary SA Taxi. Transaction Capital owns 75% of WeBuyCars and will remain an investor in smaller assets including the debt-collection subsidiary Nutun and SA Taxi.

ELLIES has filed for business rescue after failed attempts to diversify into the lucrative renewable energy market. The company has been under pressure since the downturn of its mainstay business, which was closely tied to the fortunes of DStv’s satellite service. Ellies imports, manufactures and sells equipment such as aerials. Its proposal to acquire Bundu Power for R203m was scrapped after it failed to secure backing from its lenders.

IMPALA Platinum expects half-year headline earnings per share to be “at least 20% lower” than the previous year. It was hit by an almost one-third decline in metals prices as well as fallout from an accident at its Rustenburg mine and a three-day strike at the Bafokeng Rasimone Platinum Mine.

ADIDAS expects weaker operating profit this year on the back of reduced profits after selling Yeezy shoes in the wake of its break-up with musician Kanye West. Its projection echoes statements from Nike, Puma and JD Sports, which have all warned of weaker profits this year as consumers cut back spending on non-essentials.