Company news in brief

MTN: SA's ex-ambassador to Iran arrestedPretoria's former ambassador to Iran has been arrested in South Africa on charges he took a bribe to help telecoms company MTN win a US$31.6 billion licence to operate in Iran.Yusuf Saloojee, now retired, was arrested on Thursday, police said on Friday, in the latest legal blow for MTN, which has faced a host of such problems in recent years. It denies the latest allegations.Police said Saloojee was given R1.4 million to help MTN win the 15-year contract to operate in Iran, worth US$31.6 billion, from Turkish mobile operator Turkcell. He used the money to buy a house in Pretoria, police said.The arrest is the first concrete development since June 2018 in connection with allegations of corruption involving MTN. In Uganda, police said on Friday that the chief executive of MTN Uganda had been deported over national security concerns. The company has also faced costly disputes over unregistered sim cards, tax and dividend repatriation in Nigeria. – Nampa/ReutersGPI to close Dunkin', Baskin Robbins in SASouth Africa's Grand Parade Investments (GPI) Ltd plans to close its loss-making Dunkin Donuts and Baskin Robbins franchises in the country after failing to find a buyer, and will focus on its Burger King outlets, GPI said on Friday.GPI signed a franchise agreement with Dunkin' Brands Group Inc, which owns Dunkin' Donuts and ice cream company Baskin Robbins, in 2016, betting that South African demand for snacks and drinks from international chains would hold up, despite pressures on disposable incomes.But a recession in 2018, elevated household debt, higher fuel prices, the introduction of sugar tax and an increase in value-added tax from 14% to 15% has squeezed consumer spending and hit earnings and margins at the chains.For the year ended June 30, 2018, the Dunkin' Donuts business made a loss before interest, tax, depreciation and amortisation of R24.9 million, while the Baskin Robbins business made a loss of R18.6 million on the same basis. – Nampa/ReutersUber posts US$50 bn in annual bookingsUber Technologies Inc had $50 billion in total bookings for its ride-service and food-delivery businesses last year, a testament to the size and global reach of the company as it prepares to woo investors in one of the biggest public stock listings to date.But figures released by the company on Friday showed revenue grew just 2% in the fourth quarter, a sign that Uber continues to heavily subsidise rides in competitive markets, raising questions about its future growth prospects.Uber's full-year revenue for 2018 was US$11.3 billion, up 43% from the prior year. Its losses before taxes, depreciation and other expenses were US$1.8 billion, an improvement over the US$2.2 billion loss posted in 2017.Uber highlighted the annual bookings figure, which was up 45% over 2017, in its release on Friday of a smattering of selected figures for its fourth-quarter and full-year results, a practice it has had for the last several quarters as it anticipated going public. The full-year figures are particularly important to show potential investors the trajectory of the business, as opposed to Uber's more erratic quarterly results.Uber in December filed confidentially for an initial public offering, which may come as early as the second quarter this year. It is racing neck-and-neck with rival Lyft to become the first ride-hailing IPO."Uber needs to show it can control costs and can make money, basically provide a strong argument that its business model is not broken and that it can achieve and sustain profitability despite issues with drivers, customers and politicians," said David Brophy, professor of finance at the University of Michigan's Ross School of Business. – Nampa/ReutersPepsiCo says investments to drive salesPepsiCo Inc said on Friday increased investments in advertising and products aimed at boosting sales growth would lead to a fall in profit this year.In his first major strategic move after taking over as chief executive officer, Ramon Laguarta unveiled plans to cut jobs and restructure plants to save US$1 billion annually through 2023 and fund its investments in a bid to claw back market share from larger rival Coca Cola.Pepsi and Coca-Cola are spending heavily to market low-sugar colas and flavoured waters to keep up with changing consumer preferences towards healthier beverages.Although increased advertising is helping sales, it is pressuring margins that are already squeezed by rising commodity and freight costs.The company said it expects 2019 adjusted profit per share to drop 3% to US$5.50, while analysts on average had expected a 3.5% rise to US$5.86 per share, according to IBES data from Refinitiv. – Nampa/ReutersMattel warns of weak 2019Mattel Inc on Friday issued a disappointing 2019 forecast and said demand for its iconic Barbie doll was slowing, triggering an 18% drop in its shares, their worst day in nearly two decades.The forecast comes barely a week after the company said strong holiday sales of Barbie drove a surprise fourth-quarter profit, which sent its shares up 23% the following morning.On Friday, the El Segundo, California-based toymaker said gross sales for 2019 would be flat on a constant-currency basis, with weakness in Thomas & Friends and American Girl offsetting comparatively stronger sales of Barbie and Hot Wheels.Even then, Barbie and Hot Wheels won't sell as much as they did in 2018, chief financial officer Joe Euteneuer said in an investor presentation.Both Mattel and rival Hasbro Inc have continued to be haunted by the collapse of Toys "R" Us as they have failed to find newer avenues to sell their toys. They also face pressure as more children shun traditional toys to play games on tablets and mobile phones.Mattel has been aiming to cut at least US$650 million in net costs by the end of 2019 through job cuts and other means. – Nampa/Reuters

Company news in brief

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Namibian Sun 2025-07-01

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Company news in brief

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Namibian Sun 2025-07-01

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