Masunga unleashes BTCL value

SHARE   |   Monday, 13 March 2017   |   By Kabelo Adamson
Masunga Masunga

BTCL share price has appreciated by as much as 46.4 percent since the price reached its lowest of 84 Thebe a share mid last year. It has since the beginning of the year gone up by 25.5 percent. BTCL shares started plummeting immediately after announcing its full financial results early last year. However, BTCL share price has launched a massive comeback towards the end of 2016 after announcing the half year results which coincided with the appointment of Anthony Masunga as the substantive Managing Director, replacing Paul Taylor. Market analysts believe the resurgence of BTCL share price has to do with the half year financial results which were announced in December by Masunga shortly after he was confirmed as the MD following months of acting on the position. Masunga officially began his duties as the new Managing Director in January this year and has since witnessed the surge of company share price on daily basis.

An analyst at Motswedi Securities, Moemedi Mosele said the share price was negatively affected by the results of the 2015 financial year which showed that the company made a huge loss of P371 million. In December, BTCL released half year financial results and this time around there was a significant improvement with profit after tax going up by 19 percent, from P74 million to P88 million. The turnaround started at this point and by the time the festive period arrived it was on a full swing. It was also during this time that BTCL chairperson, Lorato Boakgomo-Ntakhwana confirmed Masunga as the substantive MD with effect from January. Though he could not commit himself if he sees the price going further up, Mosele said he expects more stability in the BTCL share price going forward. He said there is still more demand for the company shares, hence he expects more stability in the price.

Speaking at a dinner on Thursday evening after a listings conference, Masunga hailed BTCL as the best performing stock on the local bourse year to date. “Our stock is currently trading at P1.23, a 23 percent appreciation on listing price,” said Masunga. Masunga said this represents a 25.51% appreciation since the beginning of the year and a 46.43% appreciation for those who bought when the share price was the lowest at 84thebe. BTCL Initial Public Offering Price (IPO) was P1.00 per share. But on Friday, a day after Masunga delivered his speech; the share price had surged by P0.02 to P1.25 a share. According to Masunga, since listing BTCL created wealth to the value of P241.5 million for their shareholders and distributed P90.3 million in dividends. Though still relatively new in the stock market, Masunga said their net dividend yield at 6.5% compares favourably to most companies on the exchange, and is higher than the market average of 4.3% for domestic companies. 
Who is Masunga?

With 20 years’ experience in the telecommunications industry, Masunga began his tenure as the MD in January this year after acting in the position for a few months. Prior to that he was the Chief Operating Officer credited with leading strategic projects such as the turnaround strategy of beMOBILE (BTC MOBILE) and delivery of BTCL IPO as the project manager. He holds a BSc Computer Science from McGill University (Canada) and an MBA from DE Montfort University (UK). He has recently completed an Executive Development Program with Stellenbosch University Business School.