Publications
Partners
In a busy day for corporate news in SA, Aveng jumped after flagging a hefty lift in earnings, while Blue Label picked up after its own somewhat mixed report. In international news, automotive group Stellantis has booked record profits.
ICT group Blue Label Telecoms, the largest shareholder of Cell C, informed shareholders they can expect a surge in headline earnings per share to as much as 45.95c in its six months to end-November, though this was due to the prior effects of the mobile operator's recapitalisation. Core headline earnings for the period amounted to R420 million from R35 million, but excluding the effects of Cell C, they declined 22% to R355 million. This decline was attributable to the Comm Equipment Company (CEC), while other entities in the group increased their earnings by 10%. CEC clients are typically medium-large enterprises, with the company aiming to provide unique financing for companies looking to build scale. The company said there was increased expenditure related to a distribution agreement but didn't expand on this, while there has also been a "significant increase" in the expected credit loss. "This increase aligns with the expansion of CEC's subscriber base and the deteriorating macroeconomic environment in South Africa, characterised by rising interest rates, power outages, and a depreciating rand," it said, adding that its expectation of a heightened future loss was in line with the approach taken by other consumer lenders. Blue Label climbed almost 3% on Thursday, but has still fallen by more than a third in the past year.
Infrastructure and resources group Aveng surged about 15% on Thursday after it informed shareholders they could expect earnings from continuing operations to rise as much as 120% in its six months to end-December. It didn't go into details about its operations but had completed the sale of its Trident Steel in 2023, ending that financial year in a net cash position. While it took a massive hit from a gas project in the Philippines, it also reported a jump in work in hand. Shares in Aveng, now valued at about R902 million on the JSE, have still about halved in the past 12 months.
