Five things making headlines in South Africa today

Pick n Pay, PSG results, Netflix growth forecast, Attacq has new development plans, Eskom’s crisis deepens.
Pick n Pay delivers an increase in earnings. Picture: Moneyweb

Here’s what caught our attention on Tuesday:

1.  Pick n Pay results

Retailer Pick n Pay delivered a 17% increase in headline earnings per share to 100.18 cents for the six months ended August 26, 2018, while turnover increased by 6.4% to R41.2 billion. The company attributes the performance of the first six months to its cost discipline, increased in-store execution and its more relevant customer offerings. Pick n Pay is declaring an interim dividend of 39.10 cents, a 17.1% increase from the previous year.

2. PSG results

PSG Group will release its financial results for the six months ended August 31 2018 today. In a trading statement dated October 12, the company said it expects headline earnings per share to increase between 39.1% and 40.5% to R5.05 and R5.10 and attributable earnings per share to increase between 32.6% and 34.7% to R5.12 and R5.20. This, it says, is mainly due to fair value gain recognised by Zeder on its investment into Joy Wing Mau.

3.Netflix’s potential resurgence

Popular online streaming platform, Netflix is expected to make an announcement detailing the number of subscribers it gained over the past three months. In the previous quarter, Netflix’s performance was ‘disappointing’ which had investors concerned, however, with the introduction of new series, improved programming strategies and its entrance into new markets, investors are somewhat confident that it has years of growth ahead. Netflix is projecting that it would spend $7 billion to $8 billion on movies and TV shows in 2018. 

Read: Netflix investors seek signs of resurgence after July letdown

4. Waterfall city gets a revamp

Attacq will be developing a collection of high-rise luxury apartments and office buildings in Waterfall City in Gauteng. It partnered with two Joburg-based private developers, Tricolt and Barrow Properties, on two separate developments totaling R2 billion within this new precinct. Moneyweb reports the CEO saying the group also has plans for a separate mixed-use office and hotel development, called The Atria. 

5. Eskom’s coal crisis

Energy regulator, Nersa confirmed in a report that power-utility Eskom is treading on thin ice as the availability of Eskom’s generation fleet deteriorated to an average of 72.8% for the first eight months of the year, the lowest since 2015. It should have a reserve margin of 23.1%. Following an explosion at the Lethabo Power Station, the facility’s temporary closure will affect electricity generation, while the utility also confirmed it is suffering coal shortages at some of its stations. The utility is still facing a financial crisis and also questions if it will be able to pay staff.

Read: Eskom crisis deepens, load shedding narrowly averted 

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