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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.


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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. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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Telcos Record N27Bn Loss from Damaged Fibre Cables

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Repairs and revenue losses from damaged cables are estimated to have cost Nigeria’s telecom industry almost N27bn ($23m) in 2023, according to documents obtained by Bloomberg.

Telcos Record N27Bn Loss from Damaged Fibre Cables

MTN Nigeria, the biggest wireless operator in Africa’s most-populous nation, and Airtel Africa Plc bore the brunt of the costs, the documents show.

MTN suffered more than 6,000 cuts on its fiber cable last year, the documents show.

On Feb. 28, a cut in its network in three different locations by a road construction firm, an oil serving company, and someone burning rubbish in a manhole meant customers faced more than five hours of data and voice outages.

The operator relocated 2,500 kilometers (1,553 miles) of vulnerable fiber cables between 2022 and 2023, at a cost of more than N11bn —enough to build 870 kilometers of new fiber lines in areas without coverage.

Broadband fibre optic cables form the backbone of modern communication infrastructure, enabling the high-speed data transmission that underpins a wide range of personal, business, and societal activities.

On several occasions, the Nigerian Communications Commission (NCC), the industry regulator, has acknowledged this challenge and expressed willingness to work on measures to address it.

These measures include stricter regulations to deter vandalism and improved collaboration between telcos and government agencies responsible for construction activities.

According to the NCC, the telecom sector will make up more than a fifth of the country’s gross domestic product by the end of 2027, up from 13.5 per cent in the third quarter of last year.


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NCAIR Relaunch: Pantami, Tijani Fight for Credit

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Isa Pantami, former minister of Communications and Digital Economy, has voiced his discontent over the relaunch of the National Centre for Artificial Intelligence and Robotics (NCAIR) by Bosun Tijani, his successor.

Isa Pantami, former minister of Communications and Digital Economy,

Tijani announced the revitalization of NCAIR, highlighting enhancements in its capacity and partnerships with global tech firm Cisco.

However, Pantami took to social media to assert that NCAIR was already established during his tenure in November 2020, dubbing it “the first of its kind in Africa” and emphasizing its effectiveness in training numerous Nigerians.

Tijani responded by detailing the new initiatives accompanying the relaunch, including increased computing infrastructure, dedicated research labs, and remote connectivity for AI hubs across the country. He also unveiled outcomes from the Ministry’s National AI Workshop, such as the country’s first Multilingual Large Language Model and partnerships aimed at accelerating AI development projects of national significance.

The exchange between Pantami and Tijani underscores ongoing efforts to advance AI research and application in Nigeria while navigating questions of continuity and leadership transition within the Ministry.

 


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ABoICT Lecture 2024 to Focus on Artificial Intelligence (AI) In A Digital Economy

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This year’s Africa’s Beacon of ICT Merit and Leadership lecture will focus on the role of artificial intelligence in a digital economy with the theme: “Artificial Intelligence (AI): The Good, The Complex and The Anticipated”.

The lecture which will herald Africa’s Beacon of ICT Merit and Leadership Awards hold on May 25, 2024 at Four Points by Sheraton.

The sixteenth edition of the award ceremony according Ken Nwogbo, editor-in-chief of Nigeria CommunicationsWeek the organizers of the event, “is a special edition to recognize and celebrate organizations and individuals in the ICT industry that have been distinguished in delivery innovative services in the sector.

“Most of these organizations and individuals have consistently being voted by our readers as leaders in their areas of operations and we have decided to reward them in this especial edition”.

He added that, AI is considered to have the potential to instigate a fourth industrial revolution,1 and is dramatically changing people’s patterns of interaction and economic activities.

“The traditional factors of production and physical capital and labour may no longer promote substantial economic growth. It is generally believed that AI will be one of the most important factors determining future economic growth.

“However, unlike traditional machines, which replaced the use of human and animal labor for simple manual work and heavy or dangerous activities, AI-related inputs may change the type of human work in a comprehensive way.

“In contrast to previous industrial revolutions, AI does not simply involve the invention of a new machine or technology. Instead, AI has similarities to the accumulation of human capital, as it can learn and accumulate knowledge by itself,” he said.

The Africa’s Beacon of ICT Merit and Leadership Distinguished Lecture is designed to explore efforts to put Nigeria on the global Information and Communications Technologies map.

The lecture series however is reserved for distinguished achievers in the ICT sector.

Past lecturers included Dr. Ernest Ndukwe, then executive vice chairman, Nigeria Communications Commission (NCC); Engr. Yomi Bolarinwa, former Director-General of National Broadcasting Commission (NBC); Dr. Jean Luc Fort, CEO at OR System France and a specialist in Counterparty Risk; and Professor Chris Nwagboso, Chairman, Knowledge Factory International, United Kingdom.

Others are: Uche Orji, managing director/chief executive officer, Nigeria Sovereign Investment Authority (NSIA); Biodu Omoniyi, Managing Director/CEO, VDT Communications; Ayotunde Coker, Managing Director, Rack Centre Limited; Peter Adedayo Arogundade, managing director and chief executive officer, Sidmach Technologies Nigeria Limited; Dr. Adewale Obadare, chief visionary officer, Digital Encode and John Obaro, CEO and founder of Systemspecs; Prof. Isa Pantanmi, minister of Communications and Digital Economy; among others.


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