Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Finance includes the derivative and FX losses as per footnote 4:
(4) Net finance costs of $519m, has increased $228m from the prior period largely due to higher foreign exchange and derivative losses of $184m mainly comprised of a $40m loss on derivatives and higher foreign exchange losses arose from the restatement of balance sheet liabilities (a loss of $70m on devaluation of the Nigerian Naira, and other devaluation losses of $53m mainly arising from the Malawian Kwacha, Ugandan and Kenyan shilling).
Expenses have increased at the same percentage (constant currency basis) as revenue (17.2/3%) which is somewhat to be expected (more business = more business expense)
AAF is trading on a forward p/e of around 8 - which seems odd for a telecoms company with consistent double digit growth. FX tailwinds also to be factored in with the prospect of a weakening dollar.
what does derivative losses mean?
respectively, buying spectrum and then the naira fx mess in the autumn which you'd think was priced in by now
what caused the increased expenses and net finance costs do you think?
does acquisition come under this?
Great time to top up or enter - solid base and big potential imo!
Bad quarter, good business. The underlying business is solid with customer base continuing to rapidly increase and sustained profitability.
Drop is over done.
More informed reasons
https://m.marketscreener.com/quote/stock/AIRTEL-AFRICA-PLC-61661826/news/Airtel-Africa-nine-month-profit-falls-on-expenses-net-finance-costs-42875707/
Thanks for you're informed post and explanation which totally makes sense .. hopefully all bad news priced in now
Thanks for the insight, Joberalo
Agree that it is a v solid set of results but the Naira is widely expected to devalue by 20% post the upcoming election. Using the rns guidance this would lead to declines in revenue of c400m , ebitda of c220m and additional finance costs of c160m. There is the reason for the drop. African politics seems incapable of change and so these risks will always be present. That said longer term the potential from the mobile money services in Nigeria is huge, the government is making it their mission to have a cashless economy .
Good question. Almost as if the naira fubar was news, which it isn't as we knew about it in November.
This is a great set of results illustrating a strong, growing underlying business and a great strategy helped along by PESTEL tailwinds.
I suspect the SP juddering today is just market noise. A spot of turbulence imho, and the SP will settled down and grow steadily through 2022. I will also take this opportunity to top up.
GLA, DYOR
I just bought 10k @109p
I just topped it. This sell on the news regardless of the results are plain stupid
Dont get the sell off .. solid results .. foreign exchange losses will reduce as dollar weakens now fed slowing down interest rate rises
If the results aren't spectacular - which they won't be - a sp plunge will be inevitable.
Big mistake I made here as usual.
Q3 results due early Feb , should shed light on dawdling SP , took a few late on ...atb
Nice story...
Airtel had no choice really but to buy the expensive spectrum. Fear is, it will rack up more costs than revenue. where have we seen that happen before I wonder?
interesting entry point perhaps - grabbed a tranche - will add if lower.
the same market that took it up to 160p?? Yes we all got together and had a chat over the weekend and decided it was too expensive...
the market thinks it is expensive....
back to 117, my buy in point.....
Mention below of shenanigins and shill bidding. Very unusual for such a new company to win such a prestigous deal.
The situation was mentioned - https://nairametrics.com/2022/02/04/alhaji-musbau-mohammad-bashir-the-man-behind-mafab-communications-5g-license-winner/
Mafab Communications
Mr Bashir came to the limelight after Mafab, his telecoms company won the bid for the 5G technology spectrum auction.
Mafab was on the lips of many Nigerians as they wondered about the financial capacity of the company that beat the popular Airtel Nigeria on the 5G auction.
Mafab is one of the technological subsidiaries of Althani Group of companies.it was incorporated on July, 8, 2020 and is licensed by NCC to provide and operate Local Interconnect and International carrier services.
Next major news results 2nd Feb , thats all i can find , took a few , lowest ever paid
https://airtel.africa/#/pages/investors?tab=financial-calendar