Big jump in price today and huge spike in volume (400% of av daily) as I write.
News reels say there is a license for Financial services being granted in Nigeria...........
Am in the dark as to how this fits in with their core telecom businesses, so am top-slicing today as I am up 60%.
Anyone see the actual merits of this latest move??
Hi Neil.
My sense is that in the brave new world telecoms are becoming integrated with a whole range of services that used to rely on substantial fixed infrastructure (such as branch banking) that can now come to the palm of your hand via a phone. I think this is especially true of less economically developed countries where such fixed infrastructure has never fully developed and is being by passed by new technology. Nigeria is Airtel’s biggest market and one of the most populous countries in Africa so the potential for ramping up their revenues per client via this latest license is possibly the tip of a very large iceberg. Jam tomorrow perhaps but plenty of it in sight.
Gus.
Makes some sense I guess Gus......though given the nature of the African beast am sure it's fraught with peril, especially in Nigeria! Time will tell, meantime am happy to bank some profits to deploy elsewhere.
It has not yet been granted it has just "been given approval in principle. Final approval is subject to the company satisfying certain standard conditions within six months."
So it has some way to go. I have taken some profits also at around 122p. I think it is a good move, having payments linked to smart phone, especially in Africa but shares have jumped up over 20% in a few days. I agree with Gus it has plenty of potentially and could be rolled out in other countries.
