Tere,
Victoria from Techpoint here,
Here’s what I’ve got for you today:
- MTN Group forecasts 140-150% drop in H1 EPSs
- Glovo dives into advertising
- AliExpress to enter Ethiopia
MTN Group forecasts 140-150% drop in H1 EPS
MTN Group expects a major drop in its headline earnings per share for the year’s first half—between 140% and 150%.
Last year, they earned R5.42 per share, but this year they’re looking at a loss ranging from R2.17 to R2.71 per share.
The big hits to their earnings come from the devaluation of the Nigerian naira and the ongoing conflict in Sudan, which have increased their operating costs and foreign exchange losses.
The naira’s plummet has been a huge factor, adding around 90 cents to their expenses compared to just 4 cents last year. The foreign exchange losses from Nigeria alone are expected to cut their results by 389 cents, a significant jump from last year’s 123 cents.
Despite these setbacks, MTN says they’re seeing good performance in some markets like Ghana and Uganda, and they’re making progress in South Africa and with their fintech platform.
They’re also staying steady with cash flows from Nigeria and have renegotiated their tower leases there to reduce costs. Additionally, they’ve sold MTN Guinea-Bissau to focus more on their main strategy.
Glovo dives into advertising
Looks like Glovo might be diving into the advertising game in Nigeria! This comes a few weeks after rival Chowdeck rolled out a similar service.
How did we know this? Recently, Glovo showed an ad for Jollof+, a savings product, to a user who had just purchased a meal on the app.
With Nigeria’s young workforce craving convenience, food delivery and logistics startups like Glovo are booming, despite challenges like high inflation and rising operating costs.
To keep things fresh, Glovo has been investing in electric bikes—more costly upfront but cheaper to maintain.
Now, adding advertising services could boost revenue and strengthen their market position. They’ve already launched Glovo Ads to promote brands, restaurants, and shops through in-app banners and sponsored searches.
With Glovo’s user numbers likely close to those of Chowdeck (which has 500,000 users), this ad service could be a game-changer for food and grocery delivery startups. If it works out, it might even become a model for others in the industry.
In the end, this competition could lead to better personalisation for users. So, let’s see how it all plays out—and according to Chimgozirim, may the best meal win!
AliExpress to enter Ethiopia
AliExpress is about to make its move into the Ethiopian market!
Abiyot Bayu, a Senior Advisor to Ethiopia’s Minister of Innovation and Technology, confirmed the deal, and we should hear an official announcement soon.
This follows a partnership set up five years ago between the Ethiopian government and Alibaba Group — AliExpress parent company — aiming to build Ethiopia’s digital economy.
The recent virtual meeting between Ethiopian officials and Alibaba’s team, led by Chandee Zhuang, set the stage for this expansion.
AliExpress is expected to create jobs, spark startup innovation, and help showcase Ethiopian products globally, which could boost the country’s export potential.
The company’s entry into Ethiopia aligns with the country’s push to attract foreign investment and strengthen its digital economy. Ethiopia has also introduced new rules to make it easier for foreign businesses to get involved in various sectors, including eCommerce.
With these changes, Ethiopia is aiming to streamline the process for eCommerce businesses, having already issued around 45 licenses by December 2023.
What’s more, founded by Jack Ma in 1999, Alibaba began as a platform for bulk sales to small businesses and later launched AliExpress in 2010 for individual buyers.
n case you missed it
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Have a fun weekend!
Victoria Fakiya for Techpoint Africa.
