WPP Scan Group Revenues Dip by 2 Percent

Ahead of Safaricom Ltd (NSE: SCOM) annual results announcement for the year ended 31st March 2016; a slight rally was observed last week, with the price touching a high of KES 17.90. The telco giant’s mobile money transfer platform, M-Pesa has hit over 25 million active customers globally as at 31st March 2016, marking another year of accelerated growth on their services.

The 27.1% surge in active customers was experienced across Africa, Asia and Europe, with the growth attributed to new market launches in Albania and Ghana. The listed firm’s M-Pesa revenues account for approximately 20% of the total revenues, thus marking the next growth frontier for Safaricom as they diversify from the traditional voice revenues.

Family Bank Ltd – one of the actively traded over the counter stocks- announced plans to raise KES 4Bn through a rights issue planned for later in the year, in order to boost capital ratios and fund regional expansion. The bank has actively engaged shareholders through corporate actions, with the latest KES 3.1Bn cash call conducted in 4Q2014 and KES 2Bn raised through a bond issue in 2015. The rights issue will result in an additional 200 million new shares created, with a share currently trading at an average price of KES 30. The bank’s shareholders also gave a nod during the AGM, for the setting up of a non-operating holding company; Family Bank Group Plc which will then own the subsidiary- Family Bank Kenya Ltd.

Media and advertising company, WPP Scan Group Ltd (NSE: SCAN) announced their full year results for the period ended 31st December 2015 with a flat performance. Revenues dipped by 2% to KES 5.02Bn, attributable to a tough operating environment in 2015. Kenya accounts for 66% (FY14-70%) of the group’s revenues, with the management anticipating a further reduction in Kenya’s contribution to total revenues to around 60% in 2016/2017.

Profit before tax declined by 4.1% to KES 875Mn, on account of a strong cash management system. This resulted in a 23.5% slide in the profits after tax attributable to deferred tax adjustments. Performance of operations outside of Kenya remained strong as they continued to develop the newer markets (Ghana, Nigeria, South Africa and Uganda). The counter remained unchanged during today’s trading at KES 26.50.

TPS Eastern Africa Ltd (NSE: TPSE) announced their end year results for 2015, recording a 2.3% decline in turnover to KES 6.19Bn resulting in squeezing of the EBITDA margins to 8.9% from 12.3%, the previous year. This followed with a loss after tax of KES 280.61Mn (202.3% decline) and an EPS of KES -1.63.

The company has however recommended a final dividend of KES 0.25, an 82% cut from the previous year’s dividend of KES 1.35. If approved, the said dividend will be paid from their retained earnings, thus leading to a contraction in the company’s reserves. On the other hand, EABL share price climbed 3.86% after announcing a one-time special dividend of KES 4.50 to be paid from the retained earnings. This is in addition to the interim dividend announced in HY16. The distribution is part of income received from sale of its subsidiary, Central Glass Industries (CGI) Limited, in 2015.