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Safaricom 1H16 Results net profit up 23%
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sitaki.kujulikana
#121 Posted : Tuesday, November 10, 2015 12:50:46 AM
Rank: Veteran

Joined: 8/25/2012
Posts: 1,826
I know it has been discussed elsewhere but just thought its worth looking at in the context of the current thread

Private equity firm Helios takes over Telkom Kenya's stake
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VituVingiSana
#122 Posted : Tuesday, November 10, 2015 3:12:32 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,351
Location: Nairobi
What I posted in a different thread.

"The likes of Netflix, Amazon, Hulu and AppleTV are causing 'networks' jitters in the US.
I expect Safaricom's push with 50Gb data bundles delivered to our homes to push more folks away from network TV. As @poundfoolish says the future is 'internet TV' but the final itineration is an unknown.

Google has introduced YouTube Red. It is even installing Google Fiber in some areas.

Some TV/Internet providers (in the US) allow users/subscribers to stream a movie on their TV & then continue watching it on their phones/tablets. This is done in one of two ways. Download the movie or stream it using a generous and fast data connection.

Data is king."

The Orange/Zuku tie-up is good news for Kenyan consumers as it brings on board a solid well-funded investor (Helios) who can push for Triple Play and compete with Safaricom. Competition is good.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Ericsson
#123 Posted : Tuesday, November 10, 2015 9:37:46 AM
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Joined: 12/4/2009
Posts: 10,809
Location: NAIROBI
Hellios may decide to merge Wananchi and Telkom Kenya but that will be hard since there is minority stakes in both.
I see a situation where Hellios may sell its stake in Wananchi to avoid issues of competition among entities it has stakes in.
Let's see whether Hellios will shake Safaricom dominance
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Aguytrying
#124 Posted : Tuesday, November 10, 2015 11:10:36 AM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
Ericsson wrote:
Hellios may decide to merge Wananchi and Telkom Kenya but that will be hard since there is minority stakes in both.
I see a situation where Hellios may sell its stake in Wananchi to avoid issues of competition among entities it has stakes in.
Let's see whether Hellios will shake Safaricom dominance


Buying Telkom 70% and wananchi is clearly strategic. As for what they are planning, that remains to be seen. Are they capable of going for an all out war with safaricom? Where so many have failed? That requires a company ready to make losses even for 10 yrs. These guys to me look more like a quick fix, medium term play like they did with equity
The investor's chief problem - and even his worst enemy - is likely to be himself
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dunkang
#125 Posted : Tuesday, November 10, 2015 11:27:33 AM
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Joined: 6/2/2011
Posts: 4,824
Location: -1.2107, 36.8831
Aguytrying wrote:
Ericsson wrote:
Hellios may decide to merge Wananchi and Telkom Kenya but that will be hard since there is minority stakes in both.
I see a situation where Hellios may sell its stake in Wananchi to avoid issues of competition among entities it has stakes in.
Let's see whether Hellios will shake Safaricom dominance


Buying Telkom 70% and wananchi is clearly strategic. As for what they are planning, that remains to be seen. Are they capable of going for an all out war with safaricom? Where so many have failed? That requires a company ready to make losses even for 10 yrs. These guys to me look more like a quick fix, medium term play like they did with equity

They should cook the books for 5 years, then sell their stake at the NSE.

All i can say for now is, good luck and i will keep you in my prayers.
Receive with simplicity everything that happens to you.” ― Rashi

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oltome
#126 Posted : Tuesday, November 10, 2015 1:36:41 PM
Rank: Member

Joined: 8/27/2012
Posts: 136
Ever since i discovered KODI on another Wazua segment, i can safely say i don't miss anything DSTV. I hope Hellios will help that dormant giant roll out fibre optic/ home internet solutions countrywide, as @VVS says thye future is truly in internet TV.
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hisah
#127 Posted : Tuesday, November 10, 2015 2:23:18 PM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
Helios coming in or not that is just noise. The chart structure in the meantime is hinting mpesa bank will be challenging the all time highs soon.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Aguytrying
#128 Posted : Tuesday, November 10, 2015 2:31:30 PM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
hisah wrote:
Aguytrying wrote:
hisah wrote:
Ericsson wrote:
No material effect in the books;this relates to the National Police Surveillance System

Thanks. That clears the confusion I had with those construction entries.

From the look of things since the elephant sprints a bit faster in H2 is this the year EPS clocks KES 1.00? If so, the bear will not have a hold on it and should continue being a bellweather stock. And not that bandia NSE stock staging a rally that doesn't make sense like the small caps did last year! Better buying KNRE or BAMB than that NSE stock if one is chasing value.


But in real bear even bell weather stocks feel the heat. Or is this a baby bear. I may have to rise my Buying price to 12.00 due to this performance. The capitulation that we normally see in bear hasn't really started on the big 5.

The big 5 are putting up a solid fight. At times a bear shows up and the index heavyweights refuse to collapse. But if you look across the NSE20 index components, the other 15 counters have taken it in the chin as they faced the bear.


truly this is a bellweather stock this time round. The half year income(profit) 18b is more than what the second most profitable listed firm equity made the whole of last year 2014 17b.

How do you value a company with those profits and profit growth relative to the other companies operating in the same environment??

No wonder the bellweather status.... we need some really bad news or something that will spook the market if we are ever going to get this share at low valuations
The investor's chief problem - and even his worst enemy - is likely to be himself
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  | | Edit by user: Tuesday, November 10, 2015 2:35 PM | Reason: Not specified
VituVingiSana
#129 Posted : Tuesday, November 10, 2015 8:34:52 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,351
Location: Nairobi
Ericsson wrote:
Hellios may decide to merge Wananchi and Telkom Kenya but that will be hard since there is minority stakes in both.
I see a situation where Hellios may sell its stake in Wananchi to avoid issues of competition among entities it has stakes in.
Let's see whether Hellios will shake Safaricom dominance

Even if there are minority shareholders in Wananchi & Telkom, the 2 entities could collaborate since the controlling shareholders will control the management of both. It's easier to have them coordinate Triple Play packages.

Over time, Helios can slowly but surely orchestrate a merger between the two by offering shares in a 'Holding Co' to the minority shareholders of each. GoK is just a lazy participant in Telkom & it would be better off having shares in a profitable Holding Co than a money-losing Telkom.

In the meantime, Wananchi can use/lease capacity from Telkom eg dark fiber while Telkom can market its services to Zuku's base of customers. In some regions/areas, Zuku can lease office space from Telkom for sales offices while Zuku salespeople can also offer Telkom's services on their menu.

Zuku (Wananchi) is strong in Nairobi & some urban areas. Telkom has infrastructure all over the country. Can Zuku leverage/upgrade Telkom's infrastructure to offer TV services to more people?

Competition is good. This is good for Kenyans.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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  | | Edit by user: Tuesday, November 10, 2015 8:37 PM | Reason: Not specified
Aguytrying
#130 Posted : Tuesday, November 10, 2015 9:02:48 PM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
VituVingiSana wrote:
Ericsson wrote:
Hellios may decide to merge Wananchi and Telkom Kenya but that will be hard since there is minority stakes in both.
I see a situation where Hellios may sell its stake in Wananchi to avoid issues of competition among entities it has stakes in.
Let's see whether Hellios will shake Safaricom dominance

Even if there are minority shareholders in Wananchi & Telkom, the 2 entities could collaborate since the controlling shareholders will control the management of both. It's easier to have them coordinate Triple Play packages.

Over time, Helios can slowly but surely orchestrate a merger between the two by offering shares in a 'Holding Co' to the minority shareholders of each. GoK is just a lazy participant in Telkom & it would be better off having shares in a profitable Holding Co than a money-losing Telkom.

In the meantime, Wananchi can use/lease capacity from Telkom eg dark fiber while Telkom can market its services to Zuku's base of customers. In some regions/areas, Zuku can lease office space from Telkom for sales offices while Zuku salespeople can also offer Telkom's services on their menu.

Zuku (Wananchi) is strong in Nairobi & some urban areas. Telkom has infrastructure all over the country. Can Zuku leverage/upgrade Telkom's infrastructure to offer TV services to more people?

Competition is good. This is good for Kenyans.



So not taking safaricom head on but leveraging on zuku and Telkom strengths to grow each other. This makes more sense considering they are an equity fund, safaricom can on be taken out by a player their own size and even that ain't easy.

@dunkang. It's possible, their main goal is capital, dividends over a short period if equity is anything to go by
The investor's chief problem - and even his worst enemy - is likely to be himself
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