{"id":38499,"date":"2013-05-23T10:21:38","date_gmt":"2013-05-23T08:21:38","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=38499"},"modified":"2013-05-23T11:46:36","modified_gmt":"2013-05-23T09:46:36","slug":"reunert-confident-of-vodacom-deal","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/trending\/38499\/reunert-confident-of-vodacom-deal\/","title":{"rendered":"Reunert confident of Vodacom deal"},"content":{"rendered":"

Nashua Mobile<\/a>, a wholly-owned subsidiary of JSE-listed Reunert<\/a>, is confident that it will successfully renegotiate its service provider agreement with Vodacom<\/a>.<\/p>\n

On Tuesday, Reunert published its interim results for the six months ended March 2013, and stated that it was in talks with Vodacom to renew its partnership.<\/p>\n

The group also said \u201cdiscount rates have been reduced, which has negatively affected our margins\u201d.<\/p>\n

Further explaining its history with Vodacom, Reunert said: \u201cWe have had a mutually beneficial partnership with Vodacom since the inception of Nashua Mobile some 18 years ago.”<\/p>\n

\u201cWe have successfully renegotiated our service provider agreement with Vodacom a number of times in the past. \u00a0We are currently in negotiations with Vodacom to renew our agreement and will inform the market once this process has been completed,\u201d it said.<\/p>\n

In October last year,\u00a0Mark Taylor<\/a>\u00a0rejoined\u00a0Nashua Mobile\u00a0as CEO from Vodacom, where he served as MD of\u00a0\u00a0Vodacom Payment Services (M-PESA)\u00a0as well as managing executive for Vodacom\u2019s Supply\u00a0Chain and Logistics divisions.<\/p>\n

Taylor had joined Vodacom from Nashua Mobile, where he was MD from July 2003 to September 2008.<\/p>\n

He said that his main goal at Nashua Mobile would be to strengthen the company\u2019s position in the telecoms space, continuing its partnerships with Vodacom,\u00a0MTN<\/a>,\u00a0Cell C<\/a>\u00a0and\u00a08ta<\/a>\u00a0(Telkom Mobile).<\/p>\n

Results<\/strong><\/p>\n

Reunert\u2019s interim results reflected an 8% drop in revenue.<\/p>\n

Normalised headline earnings per share declined by 14%, from 298 cents to 257 cents, while operating profit was 21% lower at R583 million.<\/p>\n

Revenues within the Nashua segment declined by 9% to R3.3 billion, whilst operating profit decreased by 23% to R311 million.<\/p>\n

Nashua Mobile reflected a 12% decrease in revenue as Least Cost Routing (LCR) revenues continued to decline due to the drop in interconnect rates.<\/p>\n

The reduction in interconnect rates also resulted in enhanced hybrid packages from the networks, which negatively affected airtime revenue within this business.<\/p>\n

Net connections increased by 57,684; however, these new contracts are generally at lower subscription rates which, together with reductions in the high value LCR business, resulted in a further decline in margin over the comparative period in the prior year, Reunert said.<\/p>\n

Shares<\/strong><\/p>\n

Shares in Reunert have declined markedly since March, down from a high of R87.91, to R69.30 in early trade on Thursday (23 May). This despite holding its dividend at 95 cents per share.<\/p>\n

Stockbroker and investment expert, David Shapiro\u00a0of\u00a0Sasfin, told Moneyweb on Tuesday that Reunert was taking strain from the broader economy.<\/p>\n

\u201cAll segments were down \u2013 from the mobile to the cable side. That 15% is quite hard…they are one of the better dividend payers in the market,” he said.<\/p>\n

More on Reunert<\/h3>\n

Nashua weighs on Reunert interims<\/strong><\/a><\/p>\n

Reunert shares decline 5%<\/strong><\/a><\/p>\n

Reunert blames slower economy for earnings fall<\/strong><\/a><\/p>\n

Reunert hits back at AppChat<\/strong><\/a><\/p>\n

Best performing tech shares of 2012<\/strong><\/a><\/p>\n

Nashua Mobile extends retail footprint<\/strong><\/a><\/p>\n

Reunert lifts full-year profit by 10%<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Nashua Mobile, a wholly-owned subsidiary of JSE-listed Reunert, is confident that it will successfully renegotiate its service provider agreement with Vodacom.<\/p>\n","protected":false},"author":9,"featured_media":18279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[42,3265,26,28,2618,551,555,1075,27],"class_list":["post-38499","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trending","tag-cell-c","tag-david-shapiro","tag-headline","tag-mtn","tag-nashua","tag-nashua-mobile","tag-reunert","tag-telkom-mobile","tag-vodacom"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/38499","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=38499"}],"version-history":[{"count":7,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/38499\/revisions"}],"predecessor-version":[{"id":38504,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/38499\/revisions\/38504"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/18279"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=38499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=38499"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=38499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}