● Revenue growth: Strong 13.8% increase in services revenue, driven by fintech (+28.5%) and data services (+21.9%).
● Profitability: EBITDA margin improved to 39.9% in H2, up from 36.5% in H1.
● Dividend: R3.45 per share declared. A rise to R3.70 is expected for FY2025.
● Cash flow strength: R14 billion cash, helping maintain financial stability.
● Regional performances: Nigeria (+35.6%), Ghana (+34%), Uganda (+19.6%), and South Africa (+3.1%) all contributed to revenue growth.
Growth Opportunities:
● Fintech & digital expansion: Strong momentum in mobile payments. Expected to continue in FY2025.
● Increasing data usage: Demand for high-speed internet and 5G rollout is accelerating.
Potential Risks:
● Currency volatility: The devaluation of the Naira & Cedi remains a key risk.
● Regulatory & market challenges: Ongoing risks in Sudan and compliance with telecom regulations.
● Strong long-term potential despite short-term currency pressures.
● A dividend increase shows confidence in future cash flow stability.
● Momentum indicators are bullish, with the moving average convergence divergence (MACD) making a bullish crossover.
Stock Performance:
● +32.43% YTD growth from the R92 region.
● Volatility remains high, with shares sensitive to global economic trends.
Disclaimer:
*Any opinions, views, analysis or other information provided in this article is provided by BCS Markets SA trading as BROKSTOCK as general market commentary and should not be viewed as advice according to the FAIS Act of 2002. BCS Markets SA does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information provided by third parties. You must rely upon your judgement in all aspects of your investment decisions and all decisions are made at your own risk. BCS Markets SA and any of its employees shall not be responsible for and will not accept any liability for any direct or indirect loss including without limitation any loss of profit which may arise directly or indirectly from use of the market commentary. The content contained within the article is subject to change at any time without notice. BCS Markets SA is an authorised financial services provider FSP No. 51404.
** This article was prepared by BROKSTOCK analyst Maboko Seabi
