HiPipo Money

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For the 3rd time, Airtel Uganda has once again partnered with The India Women’s Association to organize the India Independence celebrations in Uganda.

Airtel has been partnering with the Indian Women Association to sponsor the annualIndia Independence day celebrations. The monetary sponsorship usually ends up supporting a social cause like cancer, malaria or torture against certain vulnerable groups. Last year’s sponsorship was to fight against breast cancer. Similarly, this year’s event will focus on raising funds to continue the fight against cancer. This is a noble cause that Airtel would like to continue associating with.

The sponsorship covers a charity run to fundraise for Cancer on 19th October 2014

This year’s events will include a high profile performance by reknown Bollywood artist Sunidhi Chauhan who will be performing at Kampala cricket oval.
 

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Six-fold increase in EBITDA quarter-on-quarter in 2Q14 underscores impact of operational improvements at core units; company targets significant expansion of EBITDA in coming four years, on-course with its disposal program and remains open to very carefully targeted acquisitions in core industries.

Qalaa Holdings Financial & Operational Highlights of the First Half of 2014

·         Total Revenuesrose 33% year-on-year¹ to EGP 2,927.5 million.

·         Gross Profitaccordingly rose 93% from 1H13 to EGP 664.4 million.

·         EBITDAfor the period closed at EGP 210.2 million in 1H14, a decisive improvement from a negative EGP 141.5 million a year ago driven by the impact of improved revenues and a sustained emphasis on revenue growth and cost control across the board.

·         Net Losses After Minority Interestwidened 11%, reflecting the negative impact of discontinued operations, MENA Malls (Designopolis) losses, as well as higher interest and foreign exchange charges in the period.

·         Top contributors to revenuesinclude cement (41%) and energy (26%) on the back of standout performances from units of ASEC Cement as well as TAQA Arabia. In the agrifoods division, Dina Farms and sister companies ICDP (fresh milk) and ACST (retail) also turned in strong financial and operational results.

·         Total bank debtof EGP 11.6 billion vs. total equity of EGP 13.2 billion.

Qalaa Holdings (CCAP on the Egyptian Exchange, formerly Citadel Capital) released today its consolidated financial results for the six months ending 30 June 2014, reporting revenues of USD 409297.49, up 33% compared with the pro-forma results of the same period last year.

Notably, EBITDA (before one-off charges) moved to a positive USD34m 1H14 from a negative USD20m million in the first half of 2013 primarily due to significant operational improvements at core assets. Meanwhile, net loss after minority interest for the period widened 11% to USD 57.4m, primarily on the back of non-operational factors including increases in amortization, interest expenses and foreign exchange losses.

On a second-quarter basis, Qalaa Holdings reported revenues of USD200.000 in 2Q14, a 58% y-o-y rise. Notably, 2Q14 EBITDA moved to a positive EGP 181.2 million, up from a negative USD200.000in the same period of last year.

Management moreover notes that EBITDA rose more than six-fold q-o-q from USD400M in the first quarter of this year. Notably, 2Q14 is also the first quarter the company has reported a positive EBIT figure at EGP 61.8 million, while its Net Loss After Minority Interest narrowed from US$ 32.4M in 1Q14 to EGP 178.7 million in 2Q14.

“Our results in the second quarter were underpinned by strong operational results from companies including TAQA Arabia, cement division units ASEC Minya and MisrQena Cement, and Dina Farms in our agrifoods division, among others. Simultaneously, we continued the build-out of Egyptian Refining Company’s US$ 3.7 billion greenfield refinery and reported critical progress at Nile Logistics — on the back of increased stevedoring and the introduction of container transshipment — at the same time as ASCOM, our mining unit, landed a high-profile contract for work on the New Suez Canal. We also expect to see improved performance at Africa Railways over the next 12 months,” said Ahmed Heikal, Chairman and Founder of Qalaa Holdings.

“On the divestment front, we will continue to push forward with our disposal program throughout the year and beyond. We also made a strategic decision to shut down our discontinued operations either through sale or liquidation,” Heikal added. “Our view is that any new capital deployments should be directed to proven winners, of which we have an abundance, rather than risky turnarounds,” he explained.

Also new in the quarter, the company’s financial results now reflect the consolidation of Tawazon, a leading Egyptian solid waste management company and leading player in the alternative fuels sector on the strength of its refuse-derived fuels (RDF) business. All of Qalaa Holdings’ core companies are now consolidated with the exception of themining unit, ASCOM (which is separately listed on the Egyptian Exchange under the ticker ASCM).

“We expect continued improvements in EBITDA in the second half and heading into 2015 amid a continued emphasis on both revenue growth and cost control in a business climate that we expect will continue to move in favor of our core investment theses,” said Qalaa Holdings Co-Founder and Managing Director Hisham El-Khazindar. “In particular, the sustainability of this improvement will be bolstered by continued action on the state’s recently inaugurated program to reform Egypt’s inefficient energy subsidy system.”

Below the EBITDA line, profitability was impacted in 1H14 by a 25.0% y-o-y rise in interest expenses to USD59M from USD47.5 million. This includes interest expenses consolidated from ASEC Minya (a greenfield cement plant in Egypt), where interest expenses were capitalized in 1H13 while the plant was under construction, but are now recognized as expenses following its start of production last fall.

“Our stated goal of having Qalaa Holdings debt-free and to push debt to the level of operating companies by the end of 2019 is an achievable goal,” said Heikal.

The divestment of Sphinx Glass at an equity value of US$ 114.2 million closed in 3Q14 as planned. The sale price implies an enterprise value of c. US$ 180 million after deducting debt and liabilities which are to be assumed by the buyer. Qalaa Holdings held a 73.3% stake in Sphinx Glass, resulting in cash proceeds to Qalaa of around US$ 71 million (EGP 508 million) after the estimated capital gains tax. Capital gains realized from the transaction will be recorded in the company’s third-quarter financial statements.

Going forward, Management expects growth to be driven by existing investments — both currently operational and those set to come onstream in the coming period — and is increasingly mindful of opportunities to drive growth through very carefully targeted financially accretive acquisitionsin our core industries should the right opportunities present themselves.

“We continue to be extra-focused on our core assets (including microfinance),” concluded Heikal.

Highlights of Qalaa Holdings’ 2Q and 1H 14 results, along with management’s analysis of the company’s performance and detailed overviews of performance of operational companies in each of Qalaa’s core industries, and complete financials are available for download on ir.qalaaholdings.com.

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Airtel Uganda visited Nanfugaki Primary School, one of its adopted schools, and handed over new furniture and text books to the school administration.

Nanfugaki Primary School located in Jinja is the third school under the Airtel Adopt-A-School Corporate Social Responsibility Program. It was adopted at a ground breaking event held at the school attended by government officials, district officials and the Uganda Cranes team who handed over soccer equipment to the school on 12th December last year.

Airtel’s Adopt-A-School initiative is an initiative practiced in all Airtel Africa countries where the company chooses a needy school, adopts it and starts refurbishing it.This program ensures access to quality education for all children, in particular the underprivileged ones from disadvantaged and marginalized communities, so as to realize immense significance for overall development of the country.At present, this program, across Africa and India, exists in over 300 schools.

Speaking at the handover ceremony, Mrs. Charity Bukenya, the head of Corporate Social ResponsibilityatAirtel Ugandathanked all the Airtel Uganda staff members who contributed to this noble cause. “At Airtel, we believe that to achieve the best quality education, students have to have the best facilities possible.” “We hope these students will find value in reading the text books and also utilize the furniture given to the school,” she added.

The items donated by Airtel Uganda include;

• 90 classroom desks
• 5 tables
• 5 chairs
• 10 book shelves
• 12 Staffroom desks

The Guest of Honor and Jinja District LCV Vice Chairman Mr. Paul Balidawa, commended Airtel Uganda for fulfilling their initiative. “We thank Airtel Uganda for coming back to Nanfugakito repair and maintain our school as they promised last year when they adopted us.” In his remarks, he also pledged to work hand in hand with the school administration to ensure that there is no vandalism of the property that had been donated.

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As part of its Corporate Social Responsibility (CSR) drive MTN Uganda Foundation has commissioned two community projects in the western region; a classroom block in Kashuro in Mbarara district and a clean and safe water project in Gisorora, Kisoro district.

The classroom block constructed at Kashuro Primary school is complete with two water tanks of 10,000 liters each, furniture, plastic gutters and drainage pipes worth Ushs250 million.

MTN’s General Manager Corporate Services Anthony Katamba who represented the MTN Uganda CEO- Brian Gouldie, handed over the block to the school administration and local authorities on Wednesday 17^th September 2014 before heading South West to Kisoro to commission the water project in Kisoro.

The Gisorora water project was a response to the communities out cry for lack of safe and clean water that has led to high cases of water borne diseases caused by the unsafe water. On Thursday 18^th September 2014,MTN Uganda Foundation in partnership with Kisoro district local council commissioned the clean and safe water project in Gisorora parish, Nyakabande sub county in Kisoro district.

The Gisorora waterproject was implemented using Ushs 50 million shillings that MTN Uganda Foundation contributed towards the cause which will now see a total of 264 homesteads. The safe water was brought closer to the homesteads by a distance of 3kms in partnership with Compassion Uganda and National Water and Sewerage Corporation (NWSC) which conducted additional activities such as extension of the existing water lines deep to the communities. Water verification tests were done and also the institution and training of the water committee to manage sanitation.

The ceremony was presided over by District LC5 Chairman Mr. Milton Bazanyemaso who officiated at the event as Guest of honour.

Speaking during the event, Katamba said MTN Uganda will continue working with other partners to help making a difference in areas that matter most to the different communities in Uganda. We will focus more on the rural communities who need more of these life changing projects.

“MTN Uganda and our partners are committed to enhancing development in the communities in which we do business, not just by providing universal access to communication, but also through consistent contribution to provide basic and essential necessities such as clean and safe water, promotion of good hygiene and sanitation practices and supporting education in Uganda,”. He said MTN Foundation‘s decision to commit funds on the project stemmed from a feasibility study which indicated that Gisorora area had a severe water shortage challenge. This had affected food production and also children were dropping out of school. 

Katamba further reiterated that MTN Uganda is committed to partnerships with both the public and private sector to continue driving the national development of Uganda.

Kisoro district is located in the southwestern part of the country bordering Democratic Republic of Congo and Rwanda. The district has a population of 239,000 people. Over 1,219school going children are expected to benefit from the project which saw Kisoro district contribute 10 million.

Speaking at the event, the Guest of Honour Mr. BaznyemaasocommendedMTN Ugandafor consistently investing in life changing initiatives. He recognized MTN as a responsible Corporate citizen and a worthy developmental partner for the Government of Uganda. 

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Another first from Smile Uganda………..

Smile Uganda has today launched its latest innovation, SmileON, aimed at improving the customer’s experience by allowing continued internet usage if their data bundle runs out before the end of the validity period.

SmileON allows customers to keep on enjoying super-fast internet speeds for users subscribed to the 5GB or larger data bundles and for those who purchase the Smile@Home Night or Weekend bundles.

SmileON is a value addition to Smile Uganda’s product portfolio.  It allows customers continued access to Emails, Web browsing, Skype calls, Wikipedia, Online Banking, News and Social media at the same superfast speeds, even after their bundle is finished, until they are able to top up and use the full service.

Smile has set a trend built on speed, network quality, simplicity and innovation that sets it apart from all other service providers regionally and globally.

Smile Uganda’s Country Manager, FionaMcGloinapplauds the move, highlighting that Smile has brought new ideas and ways to deliver what customers really need; super-fast internet that they can use to improve their business or their experiences at home. 

“At Smile, our aspiration is to listen to consumer’s needs and it’s this desire that led to the development of our latest innovation, SmileON, which was as a result of customer feedback.  Our customers are the essence of our business and SmileON represents our commitment to continue listening and appreciating their feedback.” says FionaMcGloin.

SmileON is available as from today to all customers who will subscribe to the 5GB data bundle or higher. The 5GB anytime bundle can be purchased for UGX 90,000 while the 5GB Smile@Home bundle is UGX 60,000, all available from Smile shops and kiosks.

Smile – Now you can

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Only a week after Agnes Kasso, a resident of Nabweru, won 10 million shillings in the on-going MTN lottery game named ‘MTN Kaja’, Eliab Kato from Luwero has emerged as the second lucky customer to take home another 10 million shillings.

On Monday 22^nd September 2014, business came to a standstill in the usually quite Luwero town when huge crowd of people gathered to witness their fellow resident receive his cash prize of 10 million shillings from MTN officials.

An understandably happy Kato thanked MTN for launching Kaja, adding that his life will never be the same again.

Speaking as he held his prize, Kato urged people to keep on trying their luck. “This is a game of chance which can turn out with lots of surprises. I never knew I would hold this much money in my hands,” he said.

Kato said he is going to use the money to boost his farming. He expressed confidence that with the cash from the Kaja, he can increase the scale of his agricultural activities.

MTN Uganda in partnership with SMS2bet recently launched a new exciting lottery game namedKaja. Customers who subscribe are entered into a daily draw to win several cash prizes of up to 40 million shillings or airtime.

MTN’s acting Chief Marketing Officer Kenneth Kiddu who handed over the cash to Kato said there are still millions of shillings for customers to win on daily a basis.

He encouraged customers to enter the promotion by dialing *178# and select “subscribe” to be entered into the daily draws.

According to Kiddu, the promotion is open to all MTN customers and everyone who participates stands an equal chance of winning all prizes including the grand cash prize of 40 million shillings.

Draws are conducted daily to pick the winning number(s) and one MTNnumber is randomly drawn to win every day. Any customer who plays Kaja and whose mobile number constitutes 8 digits of the drawn number reading sequentially from right to left will win the grand prize of 40 million shillings.

All customers who play Kaja stand an equal chance of winning. Winners arenotified by SMS while thebig cash prize winners are contacted by the telephone number 0776 986 178.