While big technology shares in the US have continued to hit new highs in 2020 – among them, Microsoft, Apple, Amazon, Google and Nvidia – JSE-listed IT companies have had a torrid start to the new decade.
Browsing: Blue Label Telecoms
Blue Label Telecoms said on Monday it will report a sharp swing back into profit in the six months ended 30 November 2019 after previously writing down the value of its 45% stake in mobile operator Cell C to zero.
It’s been a grim start to 2020 for some South African-listed technology companies, which have seen their shares battered on weak earnings updates and negative investor sentiment.
Cell C has defaulted on the payment of interest on a $184-million loan, which was due in December 2019, along with interest and capital repayments related to bilateral loan facilities with various lenders.
Vodacom is in talks with Cell C about taking on the smaller rival’s contract-paying mobile phone customers, a move that would strengthen its position as South Africa’s telecommunications market leader, sources said.
After a massive selloff on Monday, shares of South Africa’s biggest listed telecommunications companies continued to trade lower into Tuesday.
Shares of Vodacom Group and MTN Group slumped after South Africa’s two biggest mobile phone companies were ordered to step up efforts to lower data prices within the next two months or face prosecution.
Shares in Telkom soared shortly after markets opened in Johannesburg on Friday as investors took cheer from the fact that the it won’t be burdened with rival Cell C’s debt problems.
The share price of Telkom tumbled on Monday morning while Blue Label Telecoms rose after MTN South Africa and Cell C announced they had signed a massively expanded roaming deal.
Telkom on Friday informed investors that it is pursuing an acquisition of Cell C. So, why didn’t Telkom just say so in the first place? By Duncan McLeod.