Market Insight: May 10, 2012

Highlights of Delta’s results released last night:

•  Revenue increased by 36% to $554.8 million
•  Operating income grew by 44% to $98.3 million
•  EBITDA up by 45% to $118.7 million
•  Earnings per share up by 38% to 6.22 cents
•  Attributable income increased by 39% to $73.7 million
• Interim dividend paid per share = 0.83 cents and final dividend proposed per share = 1.25 cents per share
•  Net borrowings at $25.8 million

Highlights of Safcom’s FY 2012 busy being released:

•  71% SIM penetration in Kenya
•  19.1m customers
•  66.1% market share from 69.9%
•  Mobile subscribers 28.1m-
•  71.3% penetration rate
•  Revenue up 13%, voice +9%, non-voice + 29%, ebitda +5%, net profit -4% (expectations were for -19%)
•  DPS declared 0.22 +10% higher
•  2H performance +15.6% revenue, 114.9% increase in profits half on half
•  •Revenue for year driven by a 3% increase in tariff and a 10% increase in customers
•  Mpesa main driver of non-voice revenue (over 50%).29% of airtime top ups now on mpesa
•  SMS performed better that our estimates +3% while we expected a decline
•  Costs +17% increase for the year, but flat in 2H1
•  Ebitda margin of 35%- sustainable into 2013
•  Estimates for 2013-revenue mid- single digit, same ebitda margin
•  They appear cautious in giving a strong guidance due to concerns about the regulatory environment
•  Dividend payable towards end of November

Africa

•  Angola’s inflation rate declines to 10.9% in April
•  Rwanda sees 33% boost in foreign investment on plants

Nigeria

•  ASI -0.55%, Vols USD 23.89m.
•  Dangcem Q1 2012 PAT rises 10.68%
•  Banks took a beating yesterday with a number of the bigger banks closing limit down

Kenya

•  Kenya: NSE 20 +0.37%, Vols USD 4.68m.
•  EABL once again the dominant market player in terms of value traded

Botswana

•  DCI +0.02%, Vols USD 140k

Egypt

•  EGX 30 +0.48%, Vols USD 53m

Mauritius

•  Semdex +0.18%, Vols USD 2.06m

South Africa

•  Top 40 -0.19%, Vols USD 1.47bn

Zambia

•  LuSE -0.30%, Vols USD 88k

Zimbabwe

•  Industrial -0.20%, Mining -2.29%, Vols USD 2.15m