In a normal world, we’d be sad to have all these issues. But we’re in the newsletter world, and so, we’re super stoked to be sending out our 10th issue! 🎉
We are really glad we made it all the way here. Thank you for your eyes and fingers, we hope we’d be able to celebrate 130 years soon like the Eiffel Tower —world’s tallest building from 1889 to 1930—did this week.
What’s going on?
Uber went public last week Friday, meaning anyone can become a co-owner of Uber by buying a part of it. However, Uber, which was once valued by private investors at a high level of $120 billion, is currently worth about half that. As Axios reported, IPO investors lost $655 million last week Friday alone, while the company’s investors from 2016 to 2018 saw a combined $2.27 billion disappear.
Whoa. Why though?
3 possible reasons: Mark Cuban said Uber waited too long to go public, Trump’s war with China affected the US stock market and also the fact that Uber’s prospect of achieving profitability isn’t anytime soon.
What’s Uber saying?
It’s okay, Facebook and Amazon also had similar disappointing public debuts. Uber’s CEO, Dara Khosrowshahi (not sure we can help you in pronouncing this) sent a memo on Monday to employees that the stock “did not trade as well as we had hoped post IPO.”
He said, “We will be judged long-term on our performance, and I welcome that, it’s all in our hands.”
Did anyone even really gain from this?
Sure, a lot of people did. Lance Armstrong, the cyclist who had to pay millions to settle legal issues related to taking performance-enhancing drugs, invested about $100,000 which might be worth about $20m.
Beyoncé in 2015 was offered $6 million to perform for a corporate Uber event in Las Vegas. Instead of cash, she asked for payment in equity and now that $6 million has turned into much more money. 🙌
“My great-great-grandchildren already rich, that’s a lot of brown children on your Forbes list”
Beyonce in Boss
What’s going on?
Google’s two paid music services, YouTube Music and Google Play Music, have passeda total of 15 million subscribers.
Okay, I’m listening
In terms of paying users, Spotify has more than 100 million subscribers, followed by Apple with more than 50 million subscribers. While Amazon comes in third place with around 30 million subscribers.
Why does Google have two music streaming platforms?
Well let’s just say it’s all part of an experiment and the plan is to move everyone to YouTube music eventually.
Anyone in Africa doing anything similar?
Well, the closest we know of is Boomplay. It has 42 million users, not paying users. FYI: Boomplay defines an active user as anyone who logs into the app more than once after first downloading or opening an account.
FYI: Boomplay defines an active user as anyone who logs into the app more than once after first downloading or opening an account.
The National Bureau of Statistics, in its April 2019 inflation report, said inflation increased to 11.37 per cent last month from 11.25 per cent in March.
Hmm, how did we get here?
At the end of a period in Nigeria, say monthly or quarterly, the average prices of a collection of consumer goods and services such as Housing, Apparel, Food & Beverages, Transportation, Medical care, etc. are calculated to arrive at the Consumer Price index. Inflation is measured by a change in the Consumer Price Index.
Why does it matter?
It means things are slightly more expensive in the country.
The inflation rate gives the government, businesses and citizens an idea about prices change in the economy, and can act as a guide in order to make informed decisions about the economy.
If you don’t wear glasses like most of us at Cloout do, you might not know that about 50% of all eyewear comes from the same company. $54 billion French-Italian company EssilorLuxottica is the world’s largest eyewear company. Last year, Essilor and Luxottica merged two parts of the eyeglass industry: Essilor’s optical expertise and Luxottica’s frame distribution and branding.
What do I need to see here?
EssilorLuxottica resulted from the 2018 merger of French lenses maker Essilor and Italian peer, Luxottica. They were supposed to have equal weighting in the combined company’s leadership but accused each other of trying to dominate. They recentlysettled to appoint a new CEO without any ties.
Why should I care?
Almost everyone wears glasses at some point in their lives. By 2050, half of the world could be nearsighted. Huge market share (45% of prescription lens and 25% of frame sales before merging) and growing demand amid limited competition may eventually see EssilorLuxottica focus on raising its prices, this could result in more expensive glasses for (half of) you.
MTN released its financial report for the first 3 months of the year 2019 and also went public on the Nigerian Stock Exchange.
Anything interesting there?
MTN has 60.3 million subscribers in Nigeria and brings in 50% of the total revenue from Telecom in Nigeria. Also, 20 Million Nigerians live in places where MTN is the sole provider of communication. What would those people be without MTN?
Tell me more
MTN’s revenue is broken down into 5 segments, voice revenue (74.9%) which grew by 12.7%, data revenue (16.6%) which grew by 31.5% , Fintech revenue (2.9%) which increased by 22.9%, and digital revenue (1%) which dropped by 68.0% and others (4.5%).
Digital revenue! Something doesn’t add up 🤔
In case you’re wondering, digital services refer to music, video, gaming & messaging platform. Clearly, there’s a decline, because users are getting these services from other platforms.
MTN plans to launch its own services platform and partner with others to make this segment come alive.
Why should I care?
It’s been an interesting year with Apple and Disney announcing their own video streaming services. We wonder if people leave the likes of Iroko TV, Netflix, Spotify or Apple Music for MTN Movie/Music?
What’s going on?
President Trump recently issued an executive order declaring a national emergency prohibiting U.S companies from using telecom equipment and services that are foreign-owned or controlled without obtaining a license.
Something is fishy here
Yeah, This is clearly a ban on Huawei – the Chinese company leading the race in creating 5G technology.
More words on that would be great…
In our previous issue, we talked about how the US accused China of making gains from stolen intellectual property and spying of them. Apparently, the US is still on this matter.
How’s Huwawei holding up?
While Huawei has the revenue of Microsoft & makes as many phones as Apple, The New York Times reported that of the $70 billion that Huawei spent on components and other supplies last year, $11 billion went to American companies. So it’d definitely rattle the company.
Only Trump knows
Venezuela’s political crisis keeps unfolding. Venezuela a country which has the highest oil reserves in the world was once the richest country in Latin America, but all went sour in 2015 after oil prices came crashing down.
In recent years, millions of people have fled the country as it deals with hyperinflationand shortages of basics like food and medicine. A lot of people blame the socialist administration of Nicolás Maduro and have called his last year’s election a sham.
Inflation occurring at a very high rate. Currently $1 = N361, if it changes rapidly to $1 = N3,610, that’s hyperinflation.
Uhun, Tell me more
Sure. In January, President of the National Assembly of Venezuela Juan Guaidó invoked the country’s constitution to declare himself interim president until new elections happen. Maduro has refused to step down – and countries like Russia, Bolivia, and Cuba are backing him. While 54 countries including the US and dozens of others – including most Latin American countries – are backing Guaidó.
What’s the latest?
The US suspended all flights to Venezuela indefinitely due to security reasons. While protests continue, Nicolas Maduro appears to have the support of the military, while Guaido has the backing of people who are clear on what they want.
It seems like all we hear about is companies going public—making their shares available to the public— but what of the opposite? Well, two companies – First Aluminium and Newrest – have recently chosen to be delisted from the Nigerian Stock Market.
First Aluminium Plc, an aluminium manufacturing company, decided to delist because its shareholders are not benefiting from the company’s continued listing on the NSE and not getting exit opportunities either. “The share price was stuck at 50 kobo for about six years between June 2011 and June 2017, and then further declined.
Newrest Plc, a catering and hospitality services company delisted simply because they couldn’t get other people apart from the owners and directors to buy their shares or in legalese due to the inability to meet up with the 20% free float requirement of The Exchange.
Why does this matter?
Companies that are delisted signals trouble and also means they can’t access capital from public investors as before.
Just one week after Governor of CBN, Godwin Emefiele was recommended for a second term, an audio recording of him connived with one of his deputies and some top officials to cover up the loss of billions of naira was released on 12th May 2019 by Sahara Reporters.
Is this true or not?
Well, the audio is real but CBN is denying the allegations. CBN claims to have provided a 650 billion loan to 35 states due to the inability of the states to pay workers’ salaries following the global oil crash in 2015. However, in 2018 150 Billion Naira was wrongly classified as bad loans by the auditors, This negatively affected the Bank’s Balance Sheet and Shareholders fund. So the 500 bn was missing not stolen.
Are you convinced? Is it stolen or missing money?
Perhaps, this might just be a case of carelessness in the administration of its affairs. Or maybe it’s truly a fishy and scandalous case. In all this didn’t stop the CBN Governor from being confirmed for a second term by the Senate.
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