News & Insights

Financial Mail examines Canal+’s first year in control of MultiChoice, highlighting how the French broadcaster is prioritising cost discipline while betting on long-term subscriber growth across Africa. After discovering higher-than-expected operating costs, Canal+ accelerated €250 million in planned synergies, shut down the loss-making Showmax platform, and doubled down on satellite television, arguing it will remain Africa’s dominant distribution technology for decades. While profitability has improved, revenue remains under pressure. Peter Takaendesa, Chief Investment Officer at Mergence Investment Managers, says there are encouraging early signs of stronger execution, but cautions that revenue is not yet moving in the right direction.

News24 banks writer Garth Theunissen questions whether African Bank can realistically recover after a R624 million half-year loss, planned job cuts and branch closures, and yet another delay to its proposed listing. He argues that the bank may need a more fundamental solution rather than continued attempts to turn the business around. Radebe Sipamla, co-portfolio manager at Mergence, says cost-cutting should improve viability, but African Bank also needs to diversify beyond its mono-line credit offering and build more sustainable sources of non-interest income.

Commenting on the recent record Naspers results for the 2026 financial year, Peter Takaendesa, chief investment officer at Mergence Investment Managers, said both Naspers and Prosus performed well, with strong profit growth and record free cash flow generation. However, he cautioned that the outlook is somewhat clouded by the increasing investment required to compete in food delivery, adding that investors will be watching closely to see whether the heavier spending in the 2027 financial year translates into the expected business momentum.

In this thinkpiece published on EBnet, Mergence CIO Peter Takaendesa explains that global equity markets are entering a broader phase of opportunity as leadership widens beyond a handful of mega-cap technology stocks. Key themes shaping the second half of 2026 include the expansion of AI across industries, improving opportunities in emerging markets, a revival in value and cyclical sectors, greater regional diversification beyond the US, and heightened geopolitical uncertainty that reinforces the importance of active portfolio management. Investors should focus on long-term fundamentals rather than short-term market noise, as disciplined stock selection and diversified global exposure remain the best way to capture sustainable returns in an increasingly complex investment landscape.

In this feature article on Canal+ in Financial Mail, Peter Takaendesa, chief investment officer at Mergence Investment Managers, comments that Canal+ shares are light on income potential as the dividend yield is low relative to other opportunities on the JSE, adding that investors may find better long-term growth prospects elsewhere in Africa. His comments come as Canal+ pursues its R55bn acquisition of MultiChoice, betting that pay television can still succeed despite the rise of streaming. Canal+ believes Africa’s limited broadband infrastructure, high data costs and growing population will continue to support satellite TV.

Motlatjo Seima of Citywire chatted to Ismail Mohamed, Head: Fixed Income at Mergence Investment Managers, about the Mergence Money Market Fund. In a reminder that cash can still play a valuable role in portfolios, Mohamed argues that investors should not dismiss money market funds as merely a parking place for idle capital. The featured fund has delivered competitive returns while maintaining the liquidity and capital preservation that many investors seek in uncertain markets. Mohamed notes that higher interest rates have restored the attractiveness of cash investments, allowing money market funds to generate meaningful income without taking on excessive risk. He emphasises that cash remains an important asset class for diversification, liquidity management and capital protection. It is not a “dead asset” but a strategic portfolio tool, particularly during periods of market volatility and economic uncertainty.

Telkom delivered a strong set of annual results, with its data-led strategy continuing to drive growth across its mobile and fibre businesses. Mobile data revenue increased by 10.5%, fibre-related data revenue rose 6.3%, and headline earnings per share climbed 30.1%, supported by disciplined cost management and rising demand for affordable connectivity. The company also rewarded shareholders with a significantly higher dividend payout. However, enterprise technology subsidiary BCX remains under pressure. Commenting on the issue, Mergence Investment Managers CIO Peter Takaendesa noted that BCX requires a shake-up to unlock value and align with Telkom’s stronger-performing businesses.

Canal+’s secondary listing on the JSE marks a significant milestone in the French media giant’s African growth strategy following its acquisition of MultiChoice. The listing gives South African investors direct access to the company while maintaining its primary listing in London. Canal+ aims to leverage MultiChoice’s footprint across more than 50 African countries, millions of subscribers, extensive local content operations and premium sports rights to drive future growth. According to Peter Takaendesa, CIO of Mergence Investment Managers, if investors find the investment case attractive compared to other opportunities on the JSE, then buying the shares and voting their rights won’t be major issues technically despite the listing by introduction only. The move underscores Canal+’s long-term commitment to Africa’s media and entertainment sector.

“Telkom is looking increasingly strong, with management executing well on its data-led strategy and operational efficiencies,” said Mergence CIO Peter Takaendesa, after the telecoms group surprised the market with a much stronger profit outlook. Telkom forecast a 45% to 55% jump in headline earnings per share from continuing operations for the year to March 2026, driven by solid operating performance, structural cost savings and lower debt costs. Investors responded enthusiastically, sending the share price sharply higher. The update reinforced confidence in Telkom’s turnaround strategy, with growing mobile and fibre revenues helping offset declines in legacy services and positioning the company for sustained earnings growth.

NVIDIA shares swung after the chipmaker posted record first-quarter revenue of $81.6 billion, fuelled by booming AI demand. The stock briefly fell before recovering as investors weighed whether results justified soaring valuations. Peter Takaendesa, CIO of Mergence Investment Managers ,said the figures were slightly ahead of sell-side expectations but largely matched fund managers’ forecasts. He added that AI-related demand and spending by major tech firms continue to support chipmakers, although the sector’s rapid growth will eventually slow.