South African Equities Earnings Review: 14 – 18 November… | ThinkMarkets

14 November 2022

Vodacom (VOD) – Interim results for the six months ended 30 September 2022 (short form announcement)

Consensus Recommendation HOLD


Group Revenue      R53.7 billion   +7.7%
Operating Profit     R13.3 billion   -5.6%
HEPS                     457 cents          -9.5%
DPS                        340 cents         -19%



Vodacom  Price to Earnings:12.8x    Dividend Yield   6.3%
MTN        Price to Earnings: 11.4x    Dividend Yield   2.3%
Telkom     Price to Earnings: 6.2x    Dividend Yield   


Vodacom reported a mixed set of interim results for the 2023 financial year. Although group revenue growth was positive increasing by 7,7%, the company’s profits and its interim dividend contracted due to start-up costs associated with the recent launch of a national network in Ethiopia. Group service revenue increased by 7.2%, driven by service revenue growth in South Africa of 3% to R29.5 billion, service revenue growth in its international operations of 17.9% to R12.6 billion, and service revenue growth of 4.6% for its affiliate, Safaricom to 144.8 billion Kenyan shillings. The group’s number of customers increased by 2% to 132.6 million (34.31% in SA, 33.11% International and 32.58% Safaricom), bringing in an average revenue per user of R91 per month. Net profit decreased by 9% to R8.07 billion as start-up losses in Ethiopia and higher finance costs due to normalised interest rates to pre-pandemic levels. The group also cut its interim dividend by 19% to 340 cents. Vodacom is currently trading at a 5% discount from a price-earnings perspective to its long-term average and is on a 2% premium to its peer average price-earnings ratio. 

15 November 2022 

NinetyOne – Interim results for the six months ended 30 September 2022 

Consensus recommendation         HOLD  


Adjusted operating revenue    £330.9 million   +1%
Adjusted operating profit       £107.9 million    -7%
Basic EPS                               9.4 pence            -16%
DPS                                         6.5 pence            -6%           


Ninetyone                                                                          Price to Earnings: 10.1x  Dividend Yield: 6.9%
FTSE/JSE Investment Banking & Brokerage Services    Price to Earnings: 8.8x   Dividend Yield: 3.0%


Ninetyone reported a drop in half-year earnings due to volatile financial markets and client outflows triggered by the Ukraine war and global inflation. The asset managers closing assets under management (AUM) decreased by 8% to £132.3 billion due to net client outflows and negative markets. The company reported net outflows of £3.2 billion and negative market and forex movement of £8.4 billion. The AUM for equities and multi-assets contracted the most by 12% and 10% respectively to £60 billion and £22.6 billion, while fixed income and alternatives AUM both contracted by 1% to £36.1 billion and £4.04 billion respectively. The most significant client outflows originated in the Asia Pacific region and by institutional investors. The asset manager’s management fees and performance fees declined by 1% and 19% respectively to £312.8 million and £11 million. 

16 November 2022

The Spar Group (SPP) – Summarised consolidated group results for the year ended 30 September 2022 and cash dividend declaration

Consensus Recommendation    BUY                           


Turnover                 R135.6 billion    +6%
Operating Profit      R3.4 billion        +1.1%
HEPS                      1159.1 cents        -2.9%
DPS                        400 cents             -51%



Spar                                                                          Price to Earnings:11.7x      Dividend Yield:2.9%
FTSE/JSE Personal Care, Drug & Grocery stores   Price to Earnings: 21.6x   Dividend Yield:2.5%


Spar released a disappointing set of full-year financial results. Group turnover growth of 6% was driven by weak turnover growth of 8.4% in Southern Africa, 7.6% turnover growth in Ireland and Southwest England, 8.2% turnover growth in Poland and a 3% decline in turnover in Switzerland. The turnover growth in Southern Africa was driven by combined core grocery and liquor turnover growth of 9.2% (core grocery business turnover up 5.3% and TOPS liquor turnover up 42.6% from a low base affected by pandemic-related liquor trading restrictions), and Build-It turnover growth of 3.1%. The Group’s gross operating margin remained flat at 12%, while the operating margin contracted by more than 10 basis points to 2.52% from 2.65% in the prior year. The group’s Polish business reported another loss of R455.4 million after expecting it to break even by 2022, mainly because of a group of retailers quitting their contracts with the wholesale division due to unfavourable terms which required them to buy almost 40% of their goods from Spar. The group declared a final dividend of R2.25, bringing the total payout for the year to R4 per share, down from R8.16 to fund an upgrade of its IT systems across Southern Africa and Europe and its loss-making operations in Poland.


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