COMPANY COMMENT: Why shareholders are divided over Curro’s future
Curro’s real challenge may result from constrained disposable incomes against the background of low GDP growth
Questions have been asked by investors about Curro’s investment value at the current levels, with little consensus on what the future holds.Cell C must be applauded for recording its first and massive net profit since the mobile network operator’s inception 16 years ago. This will go down in history as a truly remarkable turnaround in a company. Moving from a R5.6bn net loss to a profit of R540m in one year is simply breathtaking. The company gave a complicated explanation that involved forex exchanges that slashed debt. On face value, its performance looks great, but because it is unlisted and is selective in its financial reporting, it is difficult to get a full picture of its financial health. Whether the company can maintain the same level of profit in 2017 remains to be seen, because it still has substantial debt to pay. Considering what its competitors Vodacom and MTN are generating and spending on infrastructure, it is clear that a tough journey lies ahead for Cell C. The com...
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