Telcos not feeling the love <\/strong><\/p>\n\n\n\nNotably, the joy seen in the rest of the market has not translated to the telcos sector. <\/p>\n\n\n\n
MTN’s share price has dropped by 20% since the start of the year. The company had a dismal performance in the first half of 2024 following the devaluation of the Nigerian Naira.<\/p>\n\n\n\n
The group\u2019s service revenue (in rand terms) dropped by 20% from R107 billion to R85 billion in the year’s first half. <\/p>\n\n\n\n
Although service revenue in South Africa grew by 3.3% to R21 billion, Nigerian service revenue decreased by 52.9% from R43 billion in the prior period to R20.5 billion.<\/p>\n\n\n\n
Thus, the group recorded a loss per share of 409 cents, a 278% drop from the prior period.<\/p>\n\n\n\n
The group\u2019s headline earnings per share also declined by 198.5% to a headline loss of 256 cents per share. Therefore, the group did not declare a dividend. <\/p>\n\n\n\n
Telkom’s share price has not performed much better, with the partially state-owned company’s share price dropping 11% since the start of the year. <\/p>\n\n\n\n
In its most recent financial results for 31 March 2024, Telkom’s total headline earnings per share (HEPS) and basic earnings per share (BEPS) increased by well over 100% to 376 and 385.5 cents, respectively.<\/p>\n\n\n\n
\u201cFrom a loss position in the prior year, profit for the year also increased by more than 100% to R1.9 billion, boosted by the non-recurrence of once-off restructuring costs and lower depreciation, while higher interest rates increased net finance costs compared to the prior year,\u201d said the group.<\/p>\n\n\n\n
The group is also looking to return cash to shareholders, with its first year-end dividend payment targeted for this financial year. <\/p>\n\n\n\n
However, this has not been enough for investors, with investing R1,000 at the start of the year being worth R887.40 today. <\/p>\n\n\n\n
Vodacom has been the only stock to see a year-to-date change, with a measly 0.38% growth. <\/p>\n\n\n\n
Vodacom\u2019s latest financial results show that, for the quarter ended 30 June 2024, group service revenue dropped by R14 million to R28.962 billion on a non-normalised basis.<\/p>\n\n\n\n
Vodacom is also intensely litigating Kenneth Makate in the Please Call Me case. <\/p>\n\n\n\n
Makate\u2019s legal team had demanded R20 billion to compensate him for the idea of Please Call Me, based on a calculation that the Please Call Me product had generated R205 billion in revenue since its implementation at the start of the century. <\/p>\n\n\n\n
The performance of the three Telco’s over the last year can be found below: <\/p>\n\n\n\nTelco<\/strong><\/td>YTD Change<\/strong><\/td>R1 000 today<\/strong><\/td><\/tr>Vodacom<\/td> +0.38%<\/mark><\/td>R1 003.80<\/td><\/tr> Telkom<\/td> -11.26%<\/mark><\/td>R887.40<\/td><\/tr> MTN<\/td> -20.28%<\/mark><\/td>R797.20<\/td><\/tr><\/tbody><\/table><\/div>Data captured on 1 October 2024<\/figcaption><\/figure>\n\n\n\nRead<\/strong>: Capitec is hiring \u2013 with these skills in top demand<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"South Africa’s three major telco players have had a tough 2024 when it comes to their share prices. <\/p>\n","protected":false},"author":95,"featured_media":699355,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[26,28,65,27],"class_list":["post-793204","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-telecommunications","tag-headline","tag-mtn","tag-telkom","tag-vodacom"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/793204","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\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=793204"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/793204\/revisions"}],"predecessor-version":[{"id":793368,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/793204\/revisions\/793368"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/699355"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=793204"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=793204"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=793204"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}