Commenting on aspects of Vodacom’s business post-year end results, Mergence Head: Equities Peter Takaendesa said that Vodacom is in a relatively stronger position compared to its peers, as it has the ability to recoup from the consumer some of the cost pressures affecting the industry in its key markets, has a stronger balance sheet and a better dividend payout, and still owns its cellphone towers. However, Vodacom was not immune to some of the key industry headwinds, including high cost inflation, high interest rates and weaker currencies. All telecom operators are trying to pass through some of the cost inflation to the consumer, especially in South Africa, and their success in this regard will be key to the long-term sustainability of their businesses given the pressure to continue to invest tens of billions of rand in their mobile networks.
Are the Magnificent Seven losing their shine?
The Magnificent Seven are the group of mega cap stocks – Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, Tesla – that
