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Jumia Posts Strong First Quarter Results Amid Citron Accusation

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Jumia Technologies has released its financial results for the quarter ended March 31, 2019.

Jumia in a first quarter report made available on Monday shows strong momentum amid Citron Accusations.

Sacha Poignonnec and Jeremy Hodara, co-CEOs of Jumia, said. “Jumia delivered excellent results during the first quarter of 2019: strong GMV growth of 58% leading to102% growth in marketplace revenue, year-on-year improvement of 356 basis points of Operating loss as a percentage of GMV and further development of JumiaPay, highlighted by the investment and partnership with Mastercard.

“We believe that Jumia is increasingly relevant for consumers and sellers in Africa.

“Looking ahead, we remain focused on our core operations, driving consumer adoption and engagement on our marketplace, increasing the penetration of JumiaPay, while continuing to improve our financial profile and making a sustainable impact on the continent.”

According to the report, Business highlights show that “the €50 million investment by Mastercard into Jumia, in a concurrent private placement with our Initial Public Offering, marked another milestone in the development of JumiaPay and a validation of its potential.

“We are partnering with Mastercard on a number of initiatives, including the development and marketing of co-branded products (i.e., cards, virtual cards and quick response codes).

“In the first quarter of 2019, our marketplace continued to gain depth and diversity as we focused on attracting quality sellers to our platform and providing our consumers with an expanding range of products and services.
“An example of this strategy is the partnership we announced this quarter with the technology leader Xiaomi.

“As part of this partnership, we are opening the Mi official store on our platform with the ability to offer a number of Xiaomi products on an exclusive basis.

This demonstrates the attractiveness of Jumia as a destination of choice for high profile international brands, giving them access to millions of potential consumers in Africa with one partnership.

The report further show their Financial highlights as follows, “Gross Merchandise Volume (“GMV”) grew this quarter by 58% on a yearly basis, on the back of strong marketplace growth, leading to a 102% increase this quarter in Marketplace revenue on a yearly basis.

“Our strong GMV growth combined with the attractive value proposition we offer both sellers and consumers are a key engine of monetization, which we derive from diversified revenue streams such as Commissions, Fulfillment, Value Added Services, Marketing and Advertising services.

“Gross Profit margin as a percentage of GMV increased from 5.6% in the first quarter of 2018 to 6.5% this quarter, as a result of the increased GMV monetization rate.

“Our Gross Profit also exceeded Fulfillment expense this quarter.

“We continue to have a strong focus on cost efficiency. Leveraging our strong brand awareness and highly localized marketing approach, we have been able to gain 205bps of marketing efficiency this quarter, bringing the Sales & Advertising expense from 7.2% of GMV in the first quarter of 2018 to 5.1% in the first quarter of 2019.

“Adjusted EBITDA loss as a percentage of GMV improved from negative 19.8% in the first quarter of 2018 to negative 16.4% in the first quarter of 2019.

Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University.

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MTN Bars Staff from HQ over Threats by NANS to Disrupt Operations

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Management of MTN Nigeria has directed staffs to stay away from its headquarters in Lagos today in case the National Association of Nigerian Students (NANS) and some other youth-based groups make good their threats to picket the telecom giant over xenophobic attacks on Nigerians in South Africa.

 

MTN Nigeria is a subsidiary of MTN Group South Africa, which came under threat along with other companies with South African connections over the continuous attacks and killings of Nigerians in South Africa.

 

According to TheCable, MTN Nigeria received a letter from NANS and other of the planned picketing.

 

“Right now, I am talking to you from my house. They told us to stay at home because they are scared that the picketing might turn violent.

 

“The last time that the NLC guys came, some staff sustained injuries and they want to avoid that at the moment.

 

“We might still go but they want to monitor the situation first.”

 

TheCable understands that the associations are displeased with the killings of Nigerians in South Africa, thus they made plans to protest at South African businesses.

 

There have been recorded cases of Nigerians losing their lives in xenophobic attacks in South Africa.

 

The latest record of a Nigerian who lost their life in South Africa is Elizabeth Ndubisi-Chukwu, deputy director-general of Chartered Insurance Institute of Nigeria (CIIN), who was killed in her hotel room.

 

At 12pm, the company dispatched buses to pick up staff so normal activities could resume.

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GSMA Signs £38M Funding Partnership with DFID

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The GSMA has announced that it has signed a thirty-eight million-pound partnership with the UK’s Department for International Development (DFID).

The ‘Partnership for Inclusion, Innovation and Scale’ will provide funding for the GSMA’s Mobile for Development work on digital inclusion, digital identity, energy, water, sanitation and the reduction of the mobile gender gap. It will also include two new areas of focus: disability and climate.

“This landmark partnership with DFID reinforces the joint power and potential of the private and public sectors working together and ensures that we will continue our crucial role of stimulating digital innovation to deliver both sustainable business and large-scale socio-economic impact for the underserved,” said Mats Granryd, Director General, GSMA.

“This project reinforces our commitment to supporting the UN’s Sustainable Development Goals and using the power of technology to reduce global inequalities.”

The partnership will unearth critical insights on the needs of the underserved and identify and invest in mobile-enabled innovations and business models which can drive inclusion at scale. New technologies and business models, such as mobile money and pay-as-you-go (PAYG) solar energy, have been crucial to delivering socio-economic impact to the underserved.

DFID, one of the world’s first donors to embrace digital technologies, has been at the forefront of these innovations.

The GSMA’s Mobile for Development programme is experienced in bringing digital innovations to scale, by engaging the private sector, especially mobile operators and digital innovators.

The new partnership builds on the GSMA’s long-standing relationship with DFID. Since 2013, over 20 million lives across 39 countries have been impacted, of which over 70% have been women. The link-up has already impacted all 17 SDGs, in particular SDG 5 which focuses on Gender Equality, SDG 10 which focuses on Reduced Inequalities and SDG 7 which looks at Affordable and Clean Energy.

The GSMA’s Mobile for Development programme was established to drive innovation in digital technology to reduce inequalities in the world. In particular, the programme aims to deliver sustainable business and large-scale socio-economic impact for the underserved.

The programme sits at the intersection of the mobile ecosystem and the development sector and provides unique research and insights, and in-market expertise that unites the mobile industry, tech innovators, governments and the development community.

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Yolanda Cuba joins MTN as Group Chief Digital and Fintech Officer

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MTN Group has announced appointment of Yolanda Cuba as Group Chief Digital and Fintech Officer.

 

Yolanda will join the MTN Group Executive Committee reporting to the Group CEO Rob Shuter.

 

In this role Yolanda will lead the Group’s strategic expansion of its financial services and digital solutions efforts and transformation into a digital operator.

 

Yolanda brings extensive telecommunications and leadership experience to MTN Group.

 

She joins MTN Group from Vodacom, where she served as Chief Officer of Strategy and M&A.

 

She was previously the CEO of Vodafone Ghana for a three-year period, a role that saw her named Telecom CEO of the Year in 2018.

 

“This role gives me the opportunity to drive digital innovation and financial inclusion across the Group’s vast footprint.

 

“I’m really looking forward to the new challenge and being part of the MTN leadership team”, said Yolanda.

 

Rob Shuter said, “We are very pleased to bring an executive of Yolanda’s calibre into MTN Group.

 

“Yolanda is a highly qualified and experienced executive, with a unique combination of operational telecommunications experience as well as finance, financial services and digital skills.

 

“I am confident that Yolanda’s leadership will place us in good stead as we intensify our efforts to build a digital ecosystem and scale our fintech offering across our markets”.

 

Under Yolanda’s leadership, MTN will continue to progressively grow the fintech and digital opportunities in Africa as we see these areas as major drivers of our BRIGHT growth strategy. Yolanda’s start date will be communicated in due course.

 

 

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