MTN: The Nigerian Nightmare

[Image description: A stock image of a person running away from a money pit with a caption that reads "Nigeria’s economy is sucking the life out of MTN"]

It’s no surprise that MTN is bleeding money in Nigeria, a country that’s notorious for its toxic business environment. The company’s latest financial report reveals a whopping loss of ₦519.1-billion (R5.7-billion) in the first half of its 2024 financial year. Yeah, you read that right – that’s a loss, not a profit!

Despite CEO Karl Toriola’s attempts to spin the story, the numbers are a clear indication of the chaos that’s unfolding in Nigeria. The country’s economy is a ticking time bomb, and MTN is right in the crosshairs. With inflation raging at 34.2%, the naira plunging against the dollar, and painful economic reforms driving up costs, it’s no wonder MTN is struggling to stay afloat.

But here’s the kicker – despite the challenges, MTN still managed to deliver service revenue growth of 32.6% in the first half. That’s some impressive stuff, especially considering the headwinds it’s facing. Data and fintech services are driving growth, and the company’s digital business is booming.

However, all this growth comes at a cost. Operating expenditure has more than doubled due to depreciation, higher energy costs, and VAT on tower leases. And don’t even get me started on the forex losses – a whopping ₦887.7-billion, up 95% from the same period last year.

MTN’s share price is taking a hit, down 0.2% on the day and 27% over the past three years. Principal rival Vodacom Group is faring no better, down 23% over the same period. It’s clear that the pressures facing telecoms operators in South Africa and across the continent are mounting.

So what’s the solution? For starters, MTN needs to focus on accelerating earnings recovery, strengthening its balance sheet, and restoring its net asset position. And regulators, listen up – it’s time to approve those consumer price increases and support the long-term sustainability of the industry.

[Image description: A stock image of a broken egg with a caption that reads "Nigeria’s economy is breaking MTN"]

In conclusion, MTN’s latest financial report is a stark reminder of the challenges facing telecoms operators in Nigeria. It’s a tough nut to crack, but the company must continue to adapt and innovate to survive.

The timid CFOs who cling to outdated methods are doomed to be left in the dust, while the bold and visionary leaders who harness the power of AI and automation will revolutionize their companies and leave the competition in their wake.

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WAR LOOMS OVER DSTV CHANNELS

eMedia Holdings, the parent company of e.tv and Openview, is ready to take on the giant MultiChoice in a legal battle over the fate of four of its channels on DStv. The drama began when DStv removed the channels, eExtra, eMovies Extra, eMovies, and eToonz, citing "technical issues" – a claim eMedia vehemently denies.

CHANNELS WORTH FIGHTING FOR

The four channels in question are eMedia’s bread and butter, and removing them would be a devastating blow to the company’s advertising revenue. But eMedia CEO Khalik Sherrif is not one to back down from a fight. "We will not let DStv bully us into submission," he said in a statement. "These channels are a vital part of our business, and we will do everything in our power to keep them on the DStv platform."

A DOMINANT FORCE

But eMedia is not the only one with a beef with DStv. The satellite TV giant has been accused of dominating the market, with a whopping 9 million subscribers out of a total of 12 million satellite homes. This "absolute dominance" has given DStv the upper hand in negotiations with eMedia, and the company is fed up with being taken advantage of.

A HISTORY OF CONFLICT

This is not the first time eMedia and DStv have clashed. Earlier this year, eMedia took DStv and the SABC to court over a sports sublicensing deal that eMedia claimed was unfair. The dispute has been ongoing for months, with no end in sight.

THE FUTURE OF BROADCASTING

As the battle between eMedia and DStv rages on, the future of broadcasting in South Africa hangs in the balance. With the rise of streaming services, traditional TV providers like DStv and eMedia are facing increasing pressure to adapt. But will eMedia’s fight to keep its channels on DStv be enough to save the company from extinction? Only time will tell.

Radio’s Apocalypse: How Podcasting and Streaming are Wrecking the Industry

The traditional radio industry is on the brink of collapse, with podcasting and streaming services ravaging its very existence. The latest figures from the Interactive Advertising Bureau (IAB) reveal a catastrophic decline in mainstream radio listeners, as South Africans flock to online platforms in droves.

Smartphones and Streaming: The Perfect Storm

The widespread adoption of smartphones and digital devices has created a perfect storm of change, with radio listeners abandoning traditional sets for online audio content. The IAB’s dashboard reveals a staggering growth in dedicated online audiences for radio station websites in Gauteng and KwaZulu-Natal (KZN), with 5.6 million listeners visiting Jacaranda FM’s website alone.

The Rise of Niche Radio

Niche radio stations, such as Sepedi, Zulu, and Tswana stations Thobela FM, Ukhozi FM, and Motsweding FM, are also enjoying a surge in online popularity, with millions of page impressions during the quarter. The proliferation of digital devices and declining data costs have created a golden age for online radio, with audiences migrating to digital platforms in droves.

The Death of Traditional Radio

Industry insiders are sounding the alarm, warning that traditional radio is facing extinction. "The pandemic accelerated the adoption of digital technologies in SA by an estimated four years," says Chris Borain, independent media and digital innovation consultant. "This has contributed to the large-scale shift to online radio listening."

The Rise of Podcasting

Podcasting, once a niche format, is now exploding in popularity, with South Africans consuming podcasts at an exponential rate. While many doubt podcasting will become mainstream media, it’s undeniable that traditional radio is facing a tectonic shift, as audiences abandon traditional sets for online audio content.

The End of an Era

The writing is on the wall: traditional radio is on its last legs. As podcasting and streaming services continue to ravage the industry, radio stations must adapt or die. The future of radio is online, and it’s time for the industry to wake up and smell the coffee.

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BOMBSHELL! Primedia Shareholders Are Secretly Courting Global Giants

Exclusive insiders claim that private equity firms holding stakes in South African broadcasting behemoth Primedia are quietly courting international investors, setting the stage for a potentially blockbuster deal.

Sources close to the situation reveal that Primedia’s dramatic turnaround under CEO Jonathan Procter has sparked serious interest from local and international companies eager to tap into the explosive growth potential of African media.

A surge in operating cash flow has turned Primedia into a juicy prize for private equity firms EPE Capital Partners, FirstRand, Old Mutual, and Mineworkers Investment Trust, which are now said to be weighing their options.

As mobile phone usage soars and data prices plummet across the continent, broadcasting firms are drawing increasing interest from global giants, particularly those from Europe and Asia. Can we predict a bidding war is brewing for Primedia’s valuable assets?

Some speculate that France’s Canal+ may be considering a massive offer for Primedia’s competitor, MultiChoice Group, in a deal valued at R55 billion. With its prized Eyewitness News and Radio 702 outlets, Primedia’s value is expected to skyrocket – potentially hitting R6.4 billion to R9.2 billion in the near term.

We’re told Primedia has attracted interest from "a variety" of international and local investors, with discussions still in the early stages. So, will the board of Primedia make a move? Or will this intriguing saga unfold on the sidelines of Africa’s broadcasting landscape?

Eskom’s Cancellation of Integrated Prepaid Vending Solution Tender Sparks Controversy

In a shocking move, Eskom has cancelled its tender for an integrated prepaid vending solution, citing "improper/unrealistic specifications and functionality criteria in the enquiry document". The tender, which was due to close on March 15, had been extended three times before its cancellation.

This decision has raised eyebrows, with many questioning the motives behind the cancellation. Was it a deliberate attempt to sidestep the tender process, or was it a genuine mistake?

The original scope of work for the IPVS was to provide a more integrated system with enhanced controls and functionality aligned to the Smart Grid Technology strategy. The system was meant to cater for better controls and revenue loss management capability, as well as provide a customer support portal for Eskom’s support staff.

The cancellation of the tender has left many wondering what the future holds for Eskom’s prepaid vending system. Will the utility reissue the tender, or will it opt for a different solution?

Meanwhile, other tenders are making waves in the tech industry. The Department of Human Settlements, Eastern Cape, is looking for a service provider to implement strategic ICT initiatives, while the State Information Technology Agency is procuring two routers with support and maintenance for the Department of National Treasury.

In other news, the South African Revenue Service is seeking Red Hat OpenShift subscriptions licenses with maintenance and support, while Eskom is calling for a database security management solution and an application security test solution.

Stay tuned for more updates on these tenders and the controversy surrounding Eskom’s cancellation of its integrated prepaid vending solution tender.