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The Daily Update: 20 June

April 16, 2024
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FinMeUp
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FinMeUp

The latest updates from the JSE and NYSE over the past 24 hours.

 

South Africa

Transaction Capital

  • Gomo, a joint collaboration between WeBuyCars and Mobalyz, facilitates debt agreements for consumers to acquire pre-owned vehicles.
  • Gomo has concluded more than 2,500 vehicle-backed loans, with a loan book of R515 million funded on balance sheet.
  • Transaction Capital has announced that agreements have been reached with a leading South African bank. (undisclosed bank)
  • As per the agreements, Gomo will become an originator of loans for the bank based on agreed criteria.
  • Gomo will earn a portion of the net interest margin and other fees, with the bank funding the assets on its balance sheet.
  • The Gomo product will be made available nationwide across the entire dealership network of WeBuyCars, expanding beyond Gauteng.
  • A significant increase in the scale of Gomo's business is expected in the coming years, taking advantage of this growth opportunity.

Standard Bank Group Limited- Trading statement for the six months ending 30 June 2023

  • HEPS and EPS for the six-month period ending 30 June 2023 are expected to be more than 20% higher.
  • The global economic and geopolitical environment remains volatile, with slowed global growth, high inflation, and rising interest rates.
  • The macro-economic outlook in South Africa has deteriorated, with expectations of higher inflation and interest rates for a longer period and constrained economic growth.
  • Banking activities recorded revenue growth of over 20% compared to the same period last year, supported by higher interest rates and balance sheet growth.
  • Operating expenses grew in the mid-teens, driven by higher remuneration, incentives, and technology spend.
  • Credit impairment charges were nearly 50% higher due to larger lending books, consumer strain, and increased sovereign debt risk.
  • Elevated credit impairments in consumer banking, particularly in home loans, due to interest rate hikes and high inflation levels.

City Lodge Hotels Limited- Voluntary operational update and trading statement

  • HEPS and EPS for the year ending 30 June 2023 are expected to show over a 100% improvement compared to the previous year's results.
  • Travel trends are rebounding, and demand patterns have normalized to pre-Covid-19 levels.
  • The hospitality sector is recovering, with the return of international guests and strong domestic travel.
  • Monthly occupancies have steadily improved, surpassing 2019 levels, with March 2023 reaching 63% occupancies.
  • May 2023 group occupancy was 56%, exceeding 2019 by over 4%.
  • Average room rates (ARR) have rebounded, showing high single-digit percentage increases compared to 2019.
  • Year-to-date ARR for 2023 is 12% higher than the previous corresponding period.
  • Food and beverage offerings contribute approximately 17% of the Group's total revenue.
  • Improved financial performance has resulted in a near-neutral net debt position, with a cash balance of R297 million and borrowings of R300 million.
  • The Group has access to additional unused debt facilities and overdraft facilities.

 

The U.S.

Alibaba

  • Alibaba has announced Eddie Wu will succeed Daniel Zhang as CEO of Alibaba.

Airbus

  • Airbus has secured the biggest aircraft order in aviation history, notching a 500-plane sale to Indias dominant airline IndiGo.

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