Updated 4 December 2023
Can Tsogo Sun Maintain Its Momentum?
Tsogo Sun (JSE: TSG)
Tsogo Sun, a leading diversified gaming and entertainment group in Africa, announced its financial results for the six months ended 30 September 2023.
Tsogo Sun’s revenue increased by 7% to R5.86 billion. This growth was achieved despite ongoing global economic uncertainties and inflationary pressures. The company’s operating costs increased by 10% to R3.89 billion, primarily due to rising input costs and operational expenses. Despite the increase in operating costs, Tsogo Sun managed to maintain profitability, with EBITDA (earnings before interest, taxes, depreciation, and amortization) increasing by 1% to R1.97 billion. The company’s headline earnings, a key measure of profitability, surged by 47% to R895 million. Earnings per share, a measure of profitability per share of outstanding stock, also increased by 34% to 85.9 cents.
Reflecting its strong financial performance and commitment to shareholder value creation, Tsogo Sun declared an interim gross cash dividend of 30.0 cents per share for the period ended 30 September 2023. The dividend will be payable to shareholders on record as of 18 December 2023.
“We are pleased with our strong financial performance for the first half of 2023,” said Marcel von Aulock, CEO of Tsogo Sun. “Our results demonstrate our resilience and ability to adapt to a challenging environment. We are confident in our long-term growth prospects and are committed to creating value for our shareholders.”
Prosus NV (JSE: PRX) and Naspers (JSE: NPN)
Prosus NV (PRX) and Naspers (NPN), two global technology giants, have both released strong results for the half-year ended 30 September 2023.
Prosus, a Dutch multinational technology holding company, reported core headline earnings of US$2.0 billion, an increase of 85% compared to the same period in the previous year. This growth was driven by strong performance in its e-commerce and fintech businesses. The company’s e-commerce segment, which includes its investments in MercadoLibre, Takealot, and iFood, saw revenue grow by 19% to US$1.8 billion. Its fintech segment, which includes its investments in PayU and BillDesk, saw revenue grow by 25% to US$0.6 billion.
Naspers, a South African multinational media group, reported core headline earnings of US$0.9 billion, an increase of 90% compared to the same period in the previous year. The company’s growth was driven by strong performance in its online classifieds and food delivery businesses. Its online classifieds segment, which includes its investments in OLX and Avito, saw revenue grow by 15% to US$1.4 billion. Its food delivery segment, which includes its investment in Delivery Hero, saw revenue grow by 22% to US$0.8 billion.
Both Prosus and Naspers repurchased significant amounts of their own shares during the half-year ended 30 September 2023. Prosus repurchased 16% of its outstanding shares, while Naspers repurchased 14% of its outstanding shares. These share repurchases signal the companies’ confidence in their future prospects and their commitment to returning value to shareholders.
Devastating Accident at Impala Rustenburg Mine
On November 27, 2023, a tragic accident occurred at Impala Platinum’s (Implats) Rustenburg 11 Shaft in South Africa, resulting in the loss of 11 lives and injuries to 75 others. The incident involved the unexpected rapid descent of a personnel conveyance, which was hoisting employees to the surface at the end of their shift. The conveyance’s rapid descent was halted by the jack catches, trapping employees inside.
Implats expressed deep shock and sadness over the loss of life and is providing ongoing support to the families and colleagues of those affected. The company is also conducting a thorough investigation into the cause of the accident and has implemented precautionary measures to prevent similar incidents from happening in the future.
Sources: Moneyweb; Sharenet; News24
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