UBA Responds To False reports regarding NGN41 Billion fraud involving NITEL’s Liquidation

The attention of United Bank for Africa (UBA) has been drawn to false reports circulating in the media alleging that UBA and some of its principal officers have been indicted in a NGN41 Billion fraud involving NITEL in Liquidation.

This was disclosed in a statement issued by the company secretary, Bili A. Odum via the Nigerian Stock Exchange and made available to Brand Spur.

The statement reads:

“We would like to use this medium to inform the general public that the reports are untrue, misleading, malicious, libellous and should be disregarded in its entirety.

UBA has set in motion all appropriate legal actions to ensure that the misleading reports are retracted and the perpetrators held accountable for their actions.

UBA is a reputable global brand and responsible corporate citizen, operating in multiple jurisdictions, and will continue to conduct its business in line with global best corporate governance practices, extant laws and regulations, as it has done in over 70 years of operations.”

China Dongxiang Announces Sale of Kappa Japan to the Italian Company BasicNet

Focuses on business development in China; Continues to implement the multi-brand strategy

 

HONG KONG, CHINA – Media OutReach – 31 July 2020 – The leading international sportswear brand enterprise in the PRC, China Dongxiang (Group) Co., Ltd. (“China Dongxiang” or “the Company”, together with its subsidiaries, “the Group”, HKEx stock code: 3818) announces that its non-wholly owned subsidiary Phenix Co., Ltd (“Phenix”) will sell the Kappa Japan trademarks and the IP miscellaneous assets for a consideration of US$13 million (equivalent to approximately RMB91.26 million) to Basic Trademark S.r.l. con socio unico, a wholly-owned subsidiary of BasicNet S.p.A.. The disposal includes the Kappa Japan trademarks and the IP miscellaneous assets used in the Japan business. Closing of the disposal shall take place on 15 September 2020 or no later than 15 October 2020.

 

Taking into account of the consideration of US$13 million, the unaudited book value of the Kappa Japan trademarks and the IP miscellaneous assets of US$1.98 million as at 30 June 2020 (equivalent to approximately RMB13.9 million), and the estimated transaction costs of US$0.09 million (equivalent to approximately RMB0.63 million), the Group is expected to record an unaudited estimated gain on the disposal of approximately US$10.93 million (equivalent to approximately RMB76.73 million). The net proceeds from the disposal will be applied for production and operation, as well as external investment of the Group.

 

The Chairman of the BasicNet Group, Mr. Marco Boglione, regarding the transaction stated: “I admit that the satisfaction with repurchasing the Kappa brand in Japan is immense. With the world’s third largest economy entering the BasicNet system, the global strategic project for the “omini” brand is completed. China DongXiang will independently manage the Kappa brand in the PRC and Macau, and BasicNet the rest of the world. I would like to take this opportunity to thank my friend Mr. Chen Yihong, Founder, Chairman and Executive Director of China DongXiang, who has been working with passion, courage and intelligence to develop the standing and growth of the Kappa brand for almost 20 years now. “

 

Mr. Chen Yihong, Founder, Chairman and Executive Director of China Dongxiang, said: “The disposal enables the Group to better integrate its resources and focus on the development of Kappa brand in the PRC, which is in the interests of the Group’s long-term development and the shareholders as a whole. Looking forward, we will, as always, continue to develop our business in the PRC through a multi-brand strategy, as well as to explore market opportunities.”

 

Chairman Chen concluded, “In 2006, China Dongxiang acquired from BasicNet all rights of Kappa brand in Mainland China and Macau. In 2008, the Group acquired Phenix, which owned and managed Kappa brand in Japan, becoming the owner of Kappa in both China and Japan. Today, the sale of Kappa Japan back to BasicNet reflects our close and harmonious relationship. In our nearly two decades of cooperation, I’m delighted that we have been respecting each other’s core interests, and continued to deepen our cooperation. I would like to express my sincere gratitude to Mr. Marco Boglione, Chairman of BasicNet. I hope that we can treasure what we had in the past and look forward to the future, working on our new foundation and bring the century-old brand Kappa towards a new milestone.”

 

Headquartered in Turin, Italy, BasicNet S.p.A. (BIT: BAN) mainly engages in the sector of branded leisurewear and sportswear, footwear and accessories with a collection of market-leading registered trademarks, including Kappa®, Robe di Kappa®, Jesus® Jeans, K-Way®, Superga®, Sabelt®, Briko® and Sebago®.

About China Dongxiang (Group) Co., Ltd. (Stock code: 3818)

China Dongxiang (Group) Co., Ltd. is a leading international sportswear brand enterprise in China which has been listed on the Main Board of the Hong Kong Stock Exchange since 10 October 2007. The Group is primarily engaged in the design, development, marketing and wholesale of branded sportswear in China. Currently, China Dongxiang owns all rights to the internationally renowned Kappa brand in China, Macau and Japan. On 1 May 2008, China Dongxiang completed the acquisition of Phenix, a Japanese sportswear enterprise. Phenix is the most popular ski brand in Japan with the largest market share, as well as a well-known brand in the international market.

 

Issued by Cornerstones Communications Ltd. on behalf of China Dongxiang (Group) Co., Ltd..

What do 8,000 consumers in 22 countries think about the future of payments?

Consumers have an abundance of options when it comes to choosing how they want to pay and be paid thanks to the digital payment revolution. A new study shows that consumers–especially younger generations–are eager to use  “what’s next” in payments technology, they are not adopting tech for tech’s sake.

Instead, Visa’s new study found respondents are choosing personalized payment experiences they trust, solve an unmet need, and ultimately simplify their lives.

The fifth annual Global Commerce Unbound Report (GCU) was released today and studied more than 8,000 consumers in 22 countries to understand consumer payment behaviours, trends, and payment maturity versus innovation readiness.

The results show the path to consumer-centric payments is not a linear path and differ greatly across geographies and generations.

Key findings:

  • Banking is changing: 77% of global respondents are interested in a neobank (digital bank). While banking apps have been around for years, 2019 was the first time Americans preferred in-app banking over in-branch baking.
    • Despite this, U.S. respondents had 39% lower awareness of neobanks, and 30% less interest in this new banking model compared to the global average
  • Consumer interest at the core: 51% of respondents’ payment choice drivers were about human-centred needs, from control and convenience to simplicity and personalization
    • Showing the need for control, Gen Z use of debt has increased by 39% since 2017.
    • The use of mobile and desktop payments is on the rise both globally and in the U.S.
  • Payment maturity versus innovation readiness creates unmet demand:
    • Chile, Mexico, and Japan reported the greatest unmet demand. While the appetite for payment innovation technology is at parity with payment maturity in countries like Canada and the United Kingdom
    • Usage of traditional card-based payment methods is highest in India, China, Kenya, and Singapore
  • Interest in the Internet of Things remains high globally:
    • 46% interested in a tap to pay for transportation
    • 42% want to pay for things without leaving their car
    • 41% hope to pay at retail with biometrics
  • QR codes and mobile app payments usage is high- cash is declining:
    • Millennial usage of QR codes and mobile app payments increased by 60%
    • Gen Z usage of QR codes has increased by 75% and mobile app payments by 50%
    • Globally, Both Gen Z and Millennials have reduced cash usage by roughly 14% percent

Based on the findings, the ‘one size fits all’ approach no longer applies. Businesses must be nimble enough to navigate the different payment preferences by market and demographic to remain competitive.

EcoBank Nigeria Launches Special Loan Package to Empower Female Entrepreneurs

Ecobank Nigeria has unveiled a special loan package, the Ecobank Female Entrepreneurs’ Initiative (EFEI) loan specially designed to financially empower female business owners and entrepreneurs in the country.

According to Head, Consumer Asset Product, Ecobank Group, Daberechi Effiong, the EFEI loan as conceived by the bank, is targeted at boosting small scale businesses owned by women, adding that it is a further demonstration of the importance the bank attaches to the role of women in sustainable development and contribution to the nation’s economy.

Mrs Effiong who is also the EFEI Coordinator explained that prospective female business owners could access credit with interest rates as low as 1 per cent, noting that the process for accessing the credit facility is easy and stress-free.

“The EFEI loan is one of our several ways of further encouraging female entrepreneurs in the country. As a bank, we believe empowering women will enable them to play their role better in society and the economy.

This loan would position them for increased participation, validation and contribution to their communities. The terms and conditions for accessing the loan are simple and easily such that many female entrepreneurs could readily avail themselves of the opportunity and grow their business.” She said.

She advised the women business owners to approach the bank online through its social media platforms or send a mail to alleng-femaleinitiativedesk@ecobank.com for the loan to boost their business, assuring them of Ecobank’s support and assistance in growing their business.

Businesspagengr.com gathered that EFEI was introduced by the bank to assist women business owners. Earlier in the year, Ecobank trained over 140 female business owners through the EFEI platform on digital marketing skills in its state-of-the-art Academy.

This was a follow up to a two-day capacity building on cash flow management and EFEI business opportunities held last year.

The digital training drew participants from Lagos and its environs and they were exposed to seminars, networking events, loans, trade fairs and exhibition of customers’ products.

MTN Nigeria posts N94.9bn PAT in H1 2020 Results

MTN Nigeria Communications Pic, MTN Nigeria, one of Africa’s largest providers of communications services which has a clear vision to lead the delivery of a bold, new digital world. today announces its unaudited results for the six months ended 30 June 2020.

Salient features:

  • Mobile subscribers increased by 6.8 million to 71.1 million
  • Active data users increased by 3.8 million to 29.0 million
  • Service revenue increased by 12.696 to NGN637. 0 billion
  • Earnings before interest tax, depreciation and amortisation (EBITDA) grew by 8.296 to N327.1 billion
  • EBITDA margin declined by 2.0 pp to 51.3%
  • Profit before tax (PBT) declined by 2.096 to N139.6 billion
  • Earnings per share (EPS) declined by 4.796 to N4.66kobo
  • Interim dividend per share of N3.50 kobo

Unless otherwise stated. financial information is year-on-year (YoY. H1 2020 versus H1 2019) and nonfinancial information is year-ro-dare (lune 2020 versus December 2019).

MTN Nigeria CEO, Ferdi Moolman comments:

“Following a strong 5rs!‘ quarter, we experienced a challenging operating environment in the second quarter characterised by COVID-l9 induced lockdowns and the broader macroeconomic impact it has had. Despite this we have maintained double-digit service revenue growth of 12. 6% for H1, driven by strong growth in our key revenue lines.

Dara revenue rose by 57.6% supported by an increase in data users and traffic. Revenue from digital and fintech services rose by 121.8% and 29.6% respectively. while voice revenue growth was 2.896 amidst a change in frame pattern following the Iockdowns. However, costs also increased leading to an overall decline in profit before tax and earnings per share.

In the first half of the year, we achieved 6.8 million in net additions to connect over 71.1 million customers to our network. We also connected 3.8 million new users to the internet, bringing our active data subscribers to 29 million.

Our MoMo subscribers increased by 1.6 million to 2.2 million the majority of which were in 02. We prioritised the upgrade of our network capacity to accommodate growth in traffic while continuing to expand 4G network coverage albeit at a slower pace given the constraints presented by COVID-I9.

As part of several initiatives under our Y’ello Hope Package launched in O1, we offered our subscribers free SMS targeted at providing value to the vulnerable in the society. It is pleasing that 75% of our subscribers benefitted, sending over 4.3 billion messages through the SMS platform. We also offered free money transfers using the MOMO Agent Network with over 100,000 customers utilising the service.

During the period, we changed the accounting treatment of the Value Added Tax (VAT) component of our lease payments resulting in some impact on margins. In addition to this, the combined effect of the foreign exchange rate adjustments. the 2.596 increase in value-added tax and the associated costs of COVID-19 initiatives have impacted margins.

As a result, growth in EBITDA was 8.2% in H1, while E BIT DA margin declined by 2.0pp to 51.3% and profit before tax and EPS declined by 2.096 and 4. 796. respectively.

In line with our dividend policy, the Board of Directors has approved an interim dividend of N350 kobo per share to be paid out of distributable net income.”

Operational review

We recorded a 15.6% growth YoY in our‘ mobile subscriber base to 71.1 million, providing support for voice revenue. Voice revenue. accounting for 67.9% of service revenue and up by 2.896, remained in 21‘th in H1 in an environment where the effect of lockdowns impacted traffic, particularly in April and May.

Encouragingly, we have started to see a recovery following the gradual easing of lockdown. The continued deployment of additional SIM registration devices, rural telephony initiatives and targeted offers using our customer value management (CVM) I’oolkil’ will continue to provide support for continued growth in voice revenue.

Data revenue. making up 24.2% of service revenue. continued to grow. achieving 57.6%. This was realised through increased data subscribers, improved 4G penetration and enhanced network capacity to support traffic growth due to the lockdown.

Overall, PAT and EPS declined by 4.7% a piece. reflecting an increase in taxation mainly due to over-investment allowance and exempt income.

Treatment of VAT on the Lease Payments

During the period. we reviewed the treatment of non-recoverable VAT on tease payments which was previously included in the measurement of the lease liability and right of use asset and was depreciated over the leasing term As practice has developed, we have reassessed this treatment and excluded the nonrecoverable VAT from both the lease stability and right of use asset, and accounted for it as an expense over the lease period. We applied the revised accounting policy retrospectively from the date of IFRS 16 adoption. This resulted in 00.2pp decline in EBITDA margin in H1.

Outlook

The early trends emerging from the easing of lockdown restrictions indicate a steady normalisation of our revenue mix.

However, it remains unclear how this will continue to evolve for the remainder of the year given the ongoing uncertainties presented by the COVlD-19 pandemic including its potential effects on the economy and our customers White we expect the operating environment to remain challenging.

We will continue to build on our operational and financial resilience and execute on our strategy to position the business to sustain growth over the medium-term.

We will continue to invest in our networked ramp up our 4G rollout, which was slowed down by the impact of COVtD-IQ during HI.

We have prioritised the work to improve capacity and expand coverage to capture new cities and broaden rural connectivity this is important as traffic on our network continues to increase. We have built up a solid inventory of critical parts during the Iockctown period, and are welt prepared in the event of further disruptions.

We remain committed to expanding our fintech and digital service offerings. as we come to expand our MoMo Agent network with the conversion of our existing airtime agents Into MoMo agents. and broaden our service offerings We remain on track to achieve our agent network target of 300.000 by yeor~end.

The environment remains, fluid and we are assessing the various impacts on our business on an ongoing basis and implementing mitigating interventions as necessary.

Nestlé Nigeria reports a 16.84% decline in profit after tax in the first half of 2020

Nestlé Nigeria Plc announced its unaudited financial results for the half-year ended June 30, 2020, recording revenue of N 141.0 billion for the period January to June 2020.

The company reported a profit after tax of N 21.8 billion during the first half of 2020 representing a 16.84% decline.

  • Gross Revenue declined by -0.62% to N141.02bn from N141.90bn in the previous quarter.
  • Profit before tax declined by -16.26% to N33.86bn.
  • Profit after tax declined by -16.84% to N21.82bn.
  • Net Assets declined by -30.49% from N45.55bn to N31.66bn.

What did Nestlé Nigeria say?

Mauricio Alarcon, Managing Director of Nestlé Nigeria said:

“These results illustrate the resilience of our company.

“Amidst the on-going COVID-19 pandemic, Nestlé Nigeria has delivered consistent results in terms of revenue while exchange rate variations and an increase in the price of some key materials have affected profitability.

“While it is still early to assess the impact of this crisis, we are fully confident in our people’s agility and deep commitment to overcome challenges and continue to deliver value for our shareholders and society.

“Going forward, we will remain focused on three key priorities which include safeguarding the health and wellbeing of our people, ensuring business continuity to meet consumer needs and supporting our communities,’’

“We will achieve this by unlocking the power of food to enhance the quality of life for everyone today and for generations to come,’’.

Nestlé Nigeria is one of the largest food companies in Africa to unlock the power of food to enhance the quality of life for everyone today and for generations to come.

BUA Cement & 17 others led NSE-ASI to sustains seesaw movement, gains 0.18%

Transactions on the Nigeria equity market today (Wednesday) closed on a positive note, gaining 0.18%, to extend the seesaw movement of alternating losses and gains to five consecutive days, following value appreciation on some bellwether stocks like BUA CEMENT, FBNH, UBA and 15 others.

Consequently, the market breadth closed on a positive note, recording 18 gainers as against 14 losers.

In summary, the All-Share Index (ASI) decreased by 133.45 absolute points, representing a dip of 0.54% to close at 24,650.16 points. Similarly, the overall Market Capitalization size shed N69.61 billion, representing a contraction of 0.54% to close at N12.86 trillion

SEPLAT emerged as the top gainers while NPFMCRFBK emerged as the top loser.

The upturn was impacted by gains recorded in large and medium capitalized stocks, amongst which are; SEPLAT (+10.00%), HONYFLOUR (+4.17%), BUACEMENT (+1.03%), FBNH (+1.01%), UBA (+0.81%), FIDELITYBK (+0.59%) and FLOURMILL (+0.29%).

MARKET STATISTICS

CAP N12,881,709,459,280.55 One Day (ASI CHG) +0.18%
Index 24,693.73 One Week (ASI CHG) +2.15%
Volume 101,586,874.00 One Month (ASI CHG) -0.66%
Value N973,636,783.16 Six Months (ASI CHG) -15.17%
Deals 3,685 52 Weeks (ASI CHG) -11.65%
Gainers 18 Losers 14
Unchanged 61 Total 92
YTD -8.00%

Source: NSEGTI Research

FOREIGN EXCHANGE

The Naira at the official window on Wednesday closed at 381.00/$1, unchanged against the previous day’s position.

The Investors and Exporters (I&E) FX window opened at N388.61, traded high at N392.50, and eventually closed at N389.25representing a 0.06% appreciation against the previous day’s closing position. A total of $18.83 million was transacted through the I&E window today.

MONEY MARKET

Overnight(O/N) rate closed at 2.10%, representing a 0.10% appreciation against the previous day’s closing position, while Open Buy-Back (OBB) rate closed at 1.40%, representing a 0.07% appreciation against the previous day’s position.

FIXED INCOME
Securities Close P. Close Change
Bond 302.40 297.37 +5.03 bps
T.Bills 168.42 175.29 -6.87 bps
Note: BPS=> Basis Points

Source: FMDQGTI Research

NASD OTC MARKET

The NASD OTC market today (Wednesday) closed on a negative note as the Unlisted Securities Index (USI) closed at 700.82, representing a 0.68% depreciation against the previous day’s closing position. Similarly, Market Capitalization shed N3.50 billion to close at N514.80 billion, representing a 0.68% depreciation against the previous day’s closing position. However, the aggregate volume decreased by 3.24% while the aggregate value increased by 16.52%, as investors traded a total of 405,530 shares, worth N19.91 million in 19 deal.

Sector Performance

Sector % Change
NSE30 0.19
BANKING -0.21
CONSUMER GOODS 0.01
INDUSTRIAL 0.27
INSURANCE 1.40
LOTUS ISLAMIC 0.10
OIL/GAS 4.58

 

Top 7 Gainers

Company Pclose Open Close Change % Change
SEPLAT 282.00 282.00 310.20 28.20 10.00
CORNERST 0.50 0.50 0.55 0.05 10.00
PRESTIGE 0.46 0.46 0.50 0.04 8.70
PZ 3.90 3.90 4.10 0.20 5.13
MBENEFIT 0.22 0.22 0.23 0.01 4.55
HONYFLOUR 0.96 0.96 1.00 0.04 4.17
UACN 6.80 6.80 7.00 0.20 2.94

 

Top 7 Losers

Company Pclose Open Close Change % Change
NPFMCRFBK 1.31 1.31 1.18 -0.13 -9.92
ARBICO 1.54 1.54 1.39 -0.15 -9.74
STUDPRESS 1.99 1.99 1.80 -0.19 -9.55
NAHCO 2.10 2.10 2.00 -0.10 -4.76
JAPAULOIL 0.23 0.23 0.22 -0.01 -4.35
GUINNESS 13.50 13.50 13.00 -0.50 -3.70
TRANSCORP 0.64 0.64 0.62 -0.02 -3.13

 

Top 7 Traders By Volume

Company Volume Value(₦) Current Price
GUARANTY                            10,868,529                      244,682,665 22.50
FBNH                              9,715,949                        49,141,768 5.00
UBA                              9,446,483                        58,597,588 6.20
ETI                              6,081,250                        25,427,858 4.15
STERLNBANK                              5,870,265                          6,990,621 1.19
FCMB                              5,696,557                        10,857,297 1.95
ZENITHBANK                              5,176,792                        83,899,538 16.30

 

Top 7 Traders By Value

Company Volume Value(₦) Current Price
GUARANTY                            10,868,529                 244,682,665.15 22.50
SEPLAT                                 537,303                 166,658,481.70 310.20
ZENITHBANK                              5,176,792                   83,899,537.90 16.30
MTNN                                 659,860                   77,657,957.80 117.90
UBA                              9,446,483                   58,597,587.70 6.20
FBNH                              9,715,949                   49,141,768.40 5.00
DANGCEM                                 263,196                   35,668,810.00 141.80

GTI Group Research

British American Tobacco posts H1 2020 profit rises despite volume decline

British American Tobacco reported its first-half profit edged higher, as sales of higher-priced items and cost cuts offset a fall in volume.

The company said its profit from operations rose 3.3% to £5.37 billion, with revenue up 1.1% to £12.27 billion. Its adjusted earnings per share of 157.8 pence came in ahead of a FactSet-compiled analyst estimate of 156.54 pence on sales of £12.16 billion.

MULTI-CATEGORY STRATEGY DELIVERS GROWTH IN DIFFICULT TIMES

Volume and Share

Total cigarette and THP volume declined 6.3% to 315 billion sticks (30 June 2019: 336 billion sticks) with cigarette volume down 6.5% and THP volume up 9.1%.

COVID-19 led to a sustained impact on our GTR business due to international travel restrictions, acting as a negative drag on total cigarette and THP volume of 1.1%. Excluding GTR, cigarette and THP volume declined 5.3% against an estimated industry decline of around 6%.

While cigarette volume in Developed Markets has been largely unaffected, volume in Emerging Markets has been impacted by government-mandated factory closures and sales restrictions including in South Africa, Mexico and Argentina, as well as the severity and duration of lockdowns in a number of other markets, particularly in APME.

Volume was also down in Indonesia (driven by local pricing and tax) and Pakistan (as illicit trade grew).

In the key markets, value share increased 20 bps while volume share5 was 50 bps up against 2019; and Strategic Cigarette and THP volume was down 3.4%, with volume share up by 30 bps and value share up 40 bps, with growth in all regions.

The company stated that its “new categories” revenue growth of 14.7%, which includes 9.1% growth for tobacco heated products, 41% growth in vapour and 67% growth in what it calls “modern oral.”

What did BAT say?

Jack Bowles, Chief Executive said:

“The business is performing well in difficult circumstances as our continued focus on our three key priorities has enabled us to rapidly adapt to the current environment.

  1. We are building A Better Tomorrow
    •  10% of our revenues come from non-combustible categories
    •  We are making good progress towards our target of 50 million non-combustibles consumers by 2030
    •  Invested an additional £250 million in New Categories marketing
  2. We are continuing to deliver adjusted revenue, profit from operations and earnings growth at constant rates
    •  Strong cigarette price/mix (8.5%) reflects the strength of our differentiated brand portfolio
    •  Which offsets lower cigarette and THP volume (down 6.3%)
    •  And the impact of COVID-19 of approximately -4% on adjusted revenue in the first six-months of 2020
  3. Multi-category consumer acquisition drives share growth
    •  Our Non-Combustibles consumer base increased to 11.6 million (up 1.1 million from December 2019), is an increase of 2.7 million consumers on a rolling 12-month basis from June 2019
    •  New categories revenue grew 12.7% (at constant rates)
    •  We are growing volume share in THP and value share in Vapour, with Modern oral adjusted revenue up 71% (at constant rates)
  4. We are delivering excellent combustibles volume and value share growth
    •  Cigarette volume share (up 50 bps) and value share (up 20 bps)
    •  Driven by the strength of the Group’s differentiated cigarette portfolio
    •  Strategic cigarettes and THP portfolio now accounts for 66% of total cigarettes and THP volume
    •  US cigarette volume share up 10 bps and value share up 30 bps
  5. We are navigating COVID-19 supported by a diverse market footprint
    •  Consumption trends in Developed Markets (75% of Group adjusted revenue) remain robust, with good pricing and little evidence to date of accelerated down-trading
    •  In Emerging Markets, we are growing cigarette and THP volume share strongly, up 70 bps
    •  Volumes are strong where we see illicit trade reduction and can leverage our operational agility
    •  Weaker industry volume where there have been stricter lockdown measures (for instance South Africa)
    •  We continue to anticipate a full year headwind of around 3% from COVID-19 on a constant currency adjusted revenue
  6. We are committed
    •  We are on track to deliver against our 2020 guidance
    •  We maintain our medium-term post-COVID-19 guidance of 3-5% constant currency adjusted revenue growth and high-single figure constant currency adjusted diluted EPS growth
    •  We are committed to our 65% dividend payout ratio

I would like to thank our staff, customers, partners and suppliers for working tirelessly through this difficult period. We expect the coming months to bring continued uncertainty. Nevertheless, we will continue to invest in accelerating our strategy. Building on our excellent momentum, we are confident that we will exit this crisis as a stronger and better business”

JCDecaux suffers 63% decline in Q2 2020

  • JCDecaux SA’s adjusted revenue down -41.6% to €1,075.4 million

  • Adjusted organic revenue down -40.8%, with Q2 at -63.4%
  • Adjusted operating margin of -€61.8 million
  • Adjusted EBIT, before impairment charge, of -€258.5 million
  • Net income Group share of -€254.9 million, including an impairment charge of €55.9 million
  • The positive adjusted free cash flow of €69.5 million (vs. -€7.8m in H1 2019)
  • No quarterly guidance on adjusted organic revenue growth provided in 2020 due to Covid-19

JCDecaux SA the number one outdoor advertising company worldwide, announced today its 2020 half-year financial results.

Following the adoptions of IFRS 11 from January 1*t, 2014 and IFRS 16 from January 1s*, 2019, and in compliance with the AMF’s instructions, the operating data presented below are adjusted:

  • to include our pro-rata share in companies under joint control, regarding IFRS 11,
  • to exclude the impact of IFRS 16 on our core business lease agreements (lease agreements of locations for advertising structures excluding real estate and vehicle rental contracts).
OWORO EKO Arch -Nigeria | www.wordpress-1516176-5827464.cloudwaysapps.com

The values shown in the tables are generally expressed in millions of euros. The sum of the rounded amounts or variations calculations may differ, albeit to an insignificant extent, from the reported values.

L-R: Marcellus Van Der Merwe, Digital Manager, JCDecaux Sub-Saharan Africa; Adelaide McKelvey, Sales and Marketing Director, JCDecaux Sub-Saharan Africa; Mark Cooper, CEO, JCDecaux Sub-Saharan Africa and Opeoluwa Filani, Sales Director, Horizon Outdoor advertising at the launch of JCDecaux Grace Lake in Lagos.

Commenting on the 2020 first half-year results, Jean-Charles Decaux, Chairman of the Executive Board and Co-CEO of JCDecaux, said:

“During the Covid-19 lockdown period, the temporary historic drop in urban and transport audiences, as well as severe economic uncertainties, led companies to react immediately and to reduce their advertising spend on an unprecedented scale. Once lockdown measures were lifted, urban audiences started to recover progressively in Street Furniture and in Billboard while Transport audiences are still lagging significantly, mainly in airports.

Advertising revenue has, for the time being, not followed the same pace of recovery and we see an important difference between audiences’ levels, which are in some geographies close to pre-COVID-19, and revenue levels which do not yet reflect the positive momentum in urban audiences.

Our Group revenue declined by €766.9 million reaching €1,075.4 million with a decrease in adjusted organic revenue at -40.8%, mainly in Q2 2020 (-63.4%). Our H1 2020 operating margin reducing significantly to -€61.8 million. While the Group started the year positively, mainly in Street Furniture (up +3.9% by the end of February), the performance was hardly hit by the Covid-19 outbreak from March onwards. Immediate and dedicated action was taken on operating and financial levers to mitigate this decline and save cash, including but not limited to rent reliefs, severe cost management, reduced capital investment, tight control over the working capital requirement and dividend cancellation.

Our digital revenue now represents 24.0% of Group revenue, up +10bp for the same period last year. After a solid Q1 2020 performance digital revenue declined in Q2 2020, to post for H1 2020 a -41.3% decline.

We have further reinforced our global leading position by completing the acquisition of a minority stake in Clear Media Limited as a pad of a consortium of investors (including Han Zi Jing, Chief Executive Officer of Clear Media, Antfin (Hong Kong) Holding Limited and China Wealth Growth.

WHO issues new international travel advice

Public health considerations while resuming international travel

1. INTRODUCTION

Many countries have halted some or all international travel since the onset of the COVID-19 pandemic but now have plans to re-open travel. This document outlines key considerations for national health authorities when considering or implementing the gradual return to international travel operations.

The decision-making process should be multisectoral and ensure coordination of the measures implemented by national and international transport authorities and other relevant sectors and be aligned with the overall national strategies for adjusting public health and social measures.

The gradual lifting of travel measures (or temporary restrictions) should be based on a thorough risk assessment, taking into account country context, the local epidemiology and transmission patterns, the national health and social measures to control the outbreak, and the capacities of health systems in both departure and destination countries, including at points of entry.

Any subsequent measure must be proportionate to public health risks and should be adjusted based on a risk assessment, conducted regularly and systematically as the COVID-19 situation evolves and communicated regularly to the public.

2. OBJECTIVE

The objective of this document is to provide governments, health authorities of WHO Member States and relevant stakeholders with elements to consider in adjusting international travel measures to the changing epidemiological situation of the COVID-19 pandemic, national public health and health service capacity available in countries and evolving understanding of the virus.

This document should be read in conjunction with other relevant WHO guidance, particularly WHO COVID-19 Strategy update 14 April 2020, Considerations for adjusting public health and social measures, the Scientific Brief on the transmission of SARS-CoV-2, 09 July 2020 and the WHO Strategic Preparedness and Response Plan (SPRP).

3. FACTORS TO BE CONSIDERED FOR RESUMING INTERNATIONAL TRAVEL

Each country should conduct a risk-benefit analysis and decide on its priorities.

WHO recommends that priority should be given to essential travel for emergencies, humanitarian actions (including emergency medical flights and medical evacuation), travel of essential personnel (including emergency responders and providers of public health technical support, critical personnel in the transport sectors such as seafarers and diplomatic officers), and repatriation.

Cargo transport should also be prioritized for essential medical, food and energy supplies. Sick travellers and persons at risk including elderly travellers and people with chronic diseases or underlying health conditions should delay or avoid travelling internationally to and from areas with community transmission.

There is no “zero risks” when considering the potential importation or exportation of cases in the context of international travel. Therefore, thorough and continuous risk assessment and management will help identify, reduce and mitigate those risks, while balancing the socio-economic consequences of travel measures (or temporary restrictions) against potential adverse public health consequences.

The decision process should include an analysis of the situation, taking into account the local context in countries of departure and destination.

The following factors should be considered:

Local epidemiology and transmission patterns, the national public health and social measures for controlling the outbreaks in both departure and in destination countries; public health and health service capacity at national and subnational levels to manage suspect and confirmed cases among travellers, including at points of entry (ports, airports, ground crossings) to mitigate and manage the risk of importation or exportation of the disease; and the evolving knowledge about COVID-19 transmission and its clinical features.

3.1 Epidemiological situation and transmission patterns at origin and destination countries

Because the COVID-19 epidemiological situation will vary among countries, international travel, carries different levels of risk of exportation/importation of SARS-CoV-2 virus, depending on the passenger’s country of departure and country of arrival.

The epidemiological situation of COVID-19 in each country is available through WHO Situation Reports, which follow the transmission scenarios defined in the Interim Guidance WHO Global surveillance for COVID-19 caused by human infection with COVID-19 virus, 20 March 2020.

Four scenarios are considered:

  • No cases: Countries/ territories/ areas with no reported cases
  • Sporadic cases: Countries/territories/areas with one or more cases, imported or locally detected
  • Clusters: Countries/territories/areas experiencing cases, clustered in time, geographic location and/or by common exposures
  • Community transmission: Countries/area/territories experiencing larger outbreaks of local transmission defined through an assessment of factors including, but not limited to:
    • Large numbers of cases not linkable to transmission chains
    • Large numbers of cases from sentinel laboratory surveillance
    • Multiple unrelated clusters in several areas of the country/territory/area.

    The risk of importation of cases in the country of arrival depends on a number of factors including the epidemiological situation in the country of departure and the country of arrival:

    • When the country of departure and the country of arrival share a similar intensity of SARS-CoV-2 virus transmission, there is no substantial risk of the potential impact on the current epidemiological situation.
    • When the country of departure is experiencing a more intense transmission of SARS-CoV-2 virus than the country of arrival, the risk of adversely affecting the epidemiological situation in the country of arrival is higher.
    • When the country of departure is experiencing transmission of lower intensity, then the risk of adversely affecting the epidemiological situation in the country of arrival is lower.

    The above risk assessment should also take into account new knowledge as it emerges. Sub-national variations may be considered in both countries.

    Countries should continuously plan for and assess their surge capacities for testing, tracking, isolating and managing imported cases and quarantine of contacts.

    3.2   Public health and intersectoral capacity

    Assessing the risk that imported cases could pose to the national response to the pandemic depends both on public health and health services capacity and the capacity of other relevant sectors.

    WHO Interim Guidance on “Considerations in adjusting public health and social measures in the context of COVID-19,” highlights six areas required to minimize the risk of increased transmission of COVID-19: control of transmission including contact tracing and isolation, sufficient public health workforce and health systems capacities, minimizing risks in high-vulnerability settings, workplace preventive measures, managed risks of importation or exportation from communities with high risks of transmission and full engagement of communities.

  • WHO has developed detailed technical and operational annexes for most of these areas and provides a set of criteria to assess the need for adjusting public health and social measures at the national level:
    1) Is the epidemic controlled?
    2) Is the public health surveillance system able to detect cases and contacts and identify any resurgence of cases, particularly among travellers?
    3) Is the health system able to cope with a resurgence of COVID-19?

    The WHO updated COVID-19 Strategy [9] has outlined objectives in relation to sectors beyond health, such as foreign affairs, finance, education, transport, travel and tourism, public works, water and sanitation, environment, social protection and agriculture.

The aim is to leverage resources and efforts to ensure that every sector of government and society takes ownership of the response, participates in it and helps prevent transmission through sector-specific and general measures, including promoting hand hygiene, respiratory etiquette and individual-level physical distancing.

Other factors outside the public health

In addition to the public health risk posed by the COVID-19 pandemic, countries should also take into account other economic, political and social considerations when deciding on resuming international travel.

Such considerations should be assessed with relevant stakeholders and appropriate experts and authorities. Relevant guidance can be found, for example, through the United Nations Development Programme (UNDP) [10], the World Tourism Organization (UNWTO), the International Labour Organization (ILO), the International Maritime Organization (IMO), and the World Bank.

Some United Nations (UN) agencies that play key roles in supporting States in resuming international travels have launched concrete COVID-19-related initiatives in line with their agency-specific mandates with the active participation of States and other international organizations.

This includes the International Civil Aviation Organization (ICAO), which developed guidance for the resumption of international air travel (Take-off document) in collaboration with other UN agencies and relevant industry partners.

4. REQUIRED CAPACITIES FOR THE MITIGATION OF IMPORTED CASES

Understanding that the mitigation efforts to curb COVID-19 ultimately fall on countries and territories at the destination. Countries should have appropriate public health and health systems capacities, particularly at points of entry (ports, airports, ground crossings) to test, isolate and treat cases, and quarantine their contacts, and exchange information and data internationally, as appropriate.

4.1   Coordination and planning

Working across sectors is essential for the proper implementation of public health measures. The transport sector is central to travel operations, but the involvement of other sectors such as trade, agriculture, tourism and security are essential to capture all the operational aspects associated with the gradual resumption of international travels.

Although not specifically designed for the COVID-19 pandemic, tools for general capacity assessment for health emergency preparedness can be helpful. WHO has produced a tool outlining critical preparedness, readiness and response actions.

4.2   Surveillance and case management capacity

Active epidemiological surveillance for case detection, case isolation, contact identification and contact follow-up are central to the effective management of the COVID-19 pandemic.

The suspect and confirmed cases should rapidly be isolated, and contacts of confirmed cases should be quarantined. Persons who are suspect or confirmed to have COVID-19 and contacts of confirmed cases should not be allowed to travel.

Use of existing surveillance systems and laboratory capacity

The national surveillance system for COVID-19 would benefit from the information shared through existing respiratory disease surveillance systems, such as those for influenza, influenza-like-illness or severe acute respiratory illness.

A sufficient workforce of trained public health or community health workers for case detection and contact tracing, and integrated risk communication and community engagement including through social media to ensure population acceptance are key elements for effective surveillance.

Countries should have sufficient laboratory testing capacity and a clear testing strategy to reliably identify cases and trace contacts, including among incoming travellers. WHO guidance on surveillance and contact tracing should be followed.

Digital tools

Some countries are already using or are considering the use of digital tools to support contact tracing efforts. These include mobile phones and apps for location tracking or proximity tracing, and/or for symptom reporting during the 14-day post-arrival period.

Such technology cannot replace public health contact tracing but may be considered as an adjunct under specific conditions that the WHO has recommended. Mobile phones and apps can be effective in identifying and informing travellers who may have been in contact with a person confirmed to have COVID-19 or a positive test for COVID-19 only if a large proportion of the general population uses such an app.

For travellers, issues of compatibility and data sharing between countries need to be considered, should international contact tracing be warranted. Before adopting such digital tools, countries may want to consider legal and ethical aspects related to individual privacy and personal data protection.

International contact tracing

When a cluster or chain of transmission involves several countries, international contact tracing can be done in a coordinated and collaborative manner through rapid information sharing via the international network of National IHR Focal Points (NFPs).

The NFPs are accessible at all times and can receive direct support from the regional WHO International Health Regulations (IHR) Contact Points. The contact details of all National IHR Focal Points and WHO IHR Contact Points in the regions can be found in the WHO Event Information System (EIS), which is accessible to national health authorities.

4.3   Risk communication and community engagement

It is essential to proactively communicate to the public through traditional media, social media and other channels about the rationale for gradually resuming international travels, the potential risk of travel and the measures required to ensure safe travel for all, including regular updates on changes in international travel, or COVID helpline to disseminate information and provide advice tailored to sub-national level situations.

This is essential to build trust in travel advice, increase compliance with health advice and prevent the spread of rumours and false information. Timely and accurate communication on changes in international travel should target the general public, travellers, operators of the transport sector, health authorities and operators in other relevant sectors.

4.4   Capacity at Points of Entry

Countries should maintain or strengthen, as necessary, their capacities at Points of Entry (PoE) for the COVID-19 response.

These, include capacities for entry/exit screening; early detection through active case finding, isolation and testing of ill passengers (including the supply of personal protective equipment at PoE); cleaning and disinfection; case management, including any necessary transportation to a medical facility; identification of contacts for contact-tracing; public information sharing on local policies for adequate hygiene and sanitation measures; physical distancing and wearing of masks; sharing of emergency phone numbers; and risk communication and education on responsible travel behaviour.

Adapted procedures for handling baggage, cargo, containers, conveyances, goods and postal parcels should be available and clearly communicated.

Countries also need to ensure capacities for ship inspection and issuance of ship sanitation certificates within the framework of the IHR. WHO guidance on the management of ill travellers at points of entry and other relevant guidance, such as operational considerations for airlines and other transport operators, should be followed.

WHO recommends a comprehensive approach to supporting and managing travellers before departure and on arrival, which includes a combination of measures for consideration before departure and on arrival.

General advice for travellers includes personal and hand hygiene, respiratory etiquette, maintaining a physical distance of at least one metre from others and use of a mask as appropriate. Sick travellers and persons at risk, including elderly travellers and people with serious chronic diseases or underlying health conditions, should postpone travel internationally to and from areas with community transmission.

Exit and entry screening includes measures like checking for signs and symptoms (fever above 38°C, cough) and interviewing passengers about respiratory infection symptoms and any exposure to high-risk contacts, which can contribute to active case finding among sick travellers.

Symptomatic travellers and identified contacts should be guided to seek or channelled to further medical examination, followed by testing for COVID- 19. Confirmed cases should be isolated and offered treatment as required.

Temperature screening alone, at exit or entry, is likely to be only partially effective in identifying infected individuals since infected individuals may be in the incubation period, may not express apparent symptoms early in the course of the disease, or could even dissimulate fever through the use of antipyretic medications.

Where resources are limited, entry screening is advisable and should be prioritized for passengers arriving on direct flights from areas with community transmission.

In addition, passengers may complete a form informing health authorities about their possible exposure to cases within the last two weeks (contact with patients among health care workers, visits to hospitals, sharing accommodation with a person sick with COVID-19, etc.).

The form should include relevant contact details of passengers who may need to be reached after travel when, for instance, they are identified as a possible contact of a case. It is recommended that such a form be filled during the flight to avoid crowds at the arrival. Authorities may also require arriving passengers to download and utilize a national COVID-control App.

Crowd control should be put in place to prevent transmission in areas where travellers gather, such as areas for interviews.

Laboratory PCR testing (molecular testing for SARS-CoV-2) immediately prior to departure or on arrival may provide information about the status of travellers. However, laboratory results should be interpreted with caution, since a small proportion of false-negative and false-positive results may occur.

If conducted, testing should be accompanied by a comprehensive COVID-19 follow up, for example, by advising departing travellers who have been tested to report any symptoms to local public health authorities.

If the testing is conducted on arrival, all travellers should be provided with an emergency phone number in case symptoms develop. A relevant case management protocol should be followed in case of a positive test.

The use of “Immunity certificates” for international travel in the context of COVID-19 is not currently supported by scientific evidence and therefore not recommended by WHO. More evidence is needed to understand the effectiveness of rapid SARS-CoV-2 antibody tests.

For more information, please refer to WHO scientific brief “Immunity passports” in the context of COVID-19, which will be updated as new evidence becomes available. Beyond the scientific considerations, there are ethical, legal and human rights aspects related to the privacy of personal data, medical confidentiality, potential risk of falsification or engagement in risky behaviour, stigma and discrimination.

Travellers should self-monitor for the potential onset of symptoms on arrival for 14 days, report symptoms and travel history to local health facilities and follow national protocols. In accordance with WHO guidance on contact tracing in the context of COVID-19, contacts of confirmed cases should be quarantined or asked to self-quarantine as part of national response strategies.

If countries choose to implement quarantine measures for all travellers on arrival, they should do so based on a risk assessment and consideration of local circumstances. They should also follow WHO guidance on quarantine of contacts in the context of COVID-19.

Countries must follow the special considerations for travellers under the IHR (2005), including by treating travellers with respect for their dignity, human rights and fundamental freedoms and minimizing any discomfort or distress associated with any health measures applied to them.

Countries shall not charge travellers for measures required for the protection of health, including (a) examinations to ascertain their health status; (b) vaccination or prophylaxis on arrival (not published 10 days earlier); (c) appropriate isolation or quarantine; (d) certificates specifying the measures applied; or (e) applied to baggage accompanying them[34].

5. MONITORING AND EVALUATION

Countries should regularly reiterate the risk assessment process and review the capacity of their public health and other relevant sectors while gradually resuming international travels. In this process, countries should also consider new knowledge about the virus and its epidemiology by consulting updated WHO scientific briefs