Company news in brief

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Vodacom reports quarterly slowdown

South Africa's Vodacom on Thursday reported a slowdown in quarterly group and service revenue growth.

Vodacom, which competes with MTN Group, implemented a number of "generous" promotions in the quarter and introduced lower-priced bundle offers through the year. These efforts dented data revenue growth in South Africa.

Group revenue for the quarter to Dec. 31 rose 1.5% to R23 billion under the previous IAS 18 accounting standard, slowing from growth of 6.7% a year earlier.

Using the new IFRS 15 accounting system, group revenue fell 2.1% and service revenue fell 2.9%.

Group customers increased 7.1 percent to 79 million, growing 5.4% in South Africa and 9.3% in its international operations. – Nampa/Reuters

Ugandan leader wants MTN to list shares

Ugandan president Yoweri Museveni said telecom firm MTN Uganda needs to sell shares on the local stock exchange to facilitate domestic ownership of the company and ensure more of the money it earns stays in the country.

A unit of South Africa's MTN Group, the company is the East African country's largest telecommunications firm, controlling a subscriber base of more than 10 million.

However, relations between MTN Uganda and authorities have become strained after the country last week deported two of its executives after accusations they were compromising national security.

Museveni made the comments while meeting MTN Group's president and CEO Rob Shuter on the sidelines of the World Economic Forum in Davos.

Museveni accused some unnamed telecoms companies of dodging taxes by under-declaring the volume of calls and that his government had bought machines that helped detect such activity. – Nampa/Reuters

Anglo says Q4 copper output at five-year high

Anglo American said its copper output had reached a five-year high and its overall output for the last quarter of 2018 had risen 7% following operational changes that boosted efficiency.

The high copper output - up 23% versus the same quarter a year ago and the highest since late 2013 - more than offset a 13% fall production at Kumba iron ore in South Africa because of infrastructure issues.

Production from the De Beers diamond arm rose by 12%, driven by increased output and good grades at the Orapa mine in Botswana.

Rough diamond sales for the full year were 4% lower versus 2017, however, as demand fell for lower value rough diamonds in the second half.

Platinum and palladium production both increased by 3%. – Nampa/Reuters

Vedanta to invest billions in India

Vedanta Resources will invest up to 600 billion Indian rupees (US$8.42 billion) in India in the next three years, chairman Anil Agarwal told TV channel ET Now.

Vedanta, which is looking to expand its zinc business in India and Africa, is targeting a total annual global production of the metal of 2 million tonnes, Agarwal told ET Now.

The oil-to-metals conglomerate, which operates in India through its unit Vedanta Ltd, plans to invest US$3 billion in oil and gas, he said.

The company is also looking to produce 1,400 tonnes of silver in India, he said, adding that he is also looking to set up a glass manufacturing unit in Maharashtra, India's most industrial state.

Vedanta is committed to invest US$1.5 billion in South Africa, Agarwal said, without specifying a timeline. – Nampa/Reuters

Hyundai suffers first net loss in 8 years

South Korea's Hyundai Motor surprised the market on Thursday by posting its first quarterly net loss in at least eight years as its vehicle sales slumped in the key China market.

Hyundai has been grappling with the lack of attractive models and strong branding in China, its biggest market where the auto industry's sales contracted for the first time in more than two decades last year due to the Sino-US trade war and the phasing out of tax cuts on smaller cars.

The automaker, which together with affiliate Kia Motors was the third-biggest automaker in China until 2016, is now saddled with overcapacity, with its 2018 China sales falling short of target and reaching only half of its total production capacity.

Hyundai reported a net loss of 129.8 billion won (US$114.95 million) for the fourth quarter ended in December compared with the average 784 billion profit estimate of analysts based on I/B/E/S Refinitiv data.

It was also the sixth consecutive annual net profit fall for Hyundai, which with Kia is the world's No.5 automaker. – Nampa/Reuters.

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Namibian Sun 2024-11-22

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