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Business

Troyka Holdings Chair, Biodun Shobanjo, Inducted into Loeries Hall of Fame

Nigeria’s foremost advertising leader and Chairman of Troyka Holdings,...

Zenith Bank, NEM, Seplat, AIICO, Dangote Cement, First HoldCo Recognised as Nigeria’s High-Performing Companies

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Finance Min, Wale Edun, to Keynote FiBOP Annual Confab Oct 18

The Honourable Minister of Finance and Coordinating Minister of...

Niteon Unveils First African Manufacturers Bank to Unlock $200bn Digital Export Market

Niteon, one of Nigeria's largest digital export marketplaces, has...

FG Boosts MSME Financing with NCGC Initiative

In a bid to boost economic growth and development,...

ICT

Konga Partners Verve to Delight Customers with Free Shopping Vouchers

  Konga, Nigeria’s leading composite e-commerce platform has partnered with...

NCC Spotlights Renewable Energy on World Consumer Rights Day

  The Nigerian Communications Commission (NCC) has concluded arrangements to...

Governors, NCC Set for Broadband Awareness Forum Oct 20

All Nigeria State Governors are set to discuss how...

VerveLife 5.0 Gears Up for Nairobi, Lagos Events

Following a successful series of Verve Life 5.0 satellite...

Telecom Infrastructure Critical to Successful 2023 Elections – Danbatta

The Executive Vice Chairman of the Nigerian Communications Commission,...

Capital Market

SEC DG: Commission Considering Gradual Implementation of ISSB Standards

The Director General of the Securities and Exchange Commission...

ISSB-Aligned Disclosures Will Lower Capital Costs, Attract Global Investors — SEC

The Securities and Exchange Commission (SEC) has unveiled plans...

SEC DG to Cadets:  Invest Early, Long Term to Create Wealth

Graduating Cadets of the Nigerian Defence Academy (NDA) have...

SEC DG: Accountability, Transparency will Boost Investor Confidence in Capital Market

The Director General of the Securities and Exchange Commission...

SEC DG: Digital Assets Represent $10tn Opportunity by 2030

The Director General of the Securities and Exchange Commission...

Insurance

13-year-old Rhema-Love Abraham Emerges Winner of 2025 Heirs Insurance Essay Championship

L:R- Funmi Olotu, National Coordinator, National Social Safety-Nets Coordinating...

Leadway Assurance: Insurance Company of the Year at 2025 BAFI Awards

L-R: Managing Director, Leadway Assurance, Gboyega Lesi; Publisher, BuisnessDay...

Heirs Insurance Group Announces Inaugural Travel Festival: A Call for Inclusive Travel Ecosystem for Africans

Heirs Insurance Group (HIG), Nigeria’s fastest-growing insurance group, has...

Sovereign Trust Insurance Celebrates 2025 Customer Service Week

Sovereign Trust Insurance Plc has been actively involved in...

Leadway: 55 Years of Innovation, Expanding Financial Access, Inclusion Across West Africa

Leadway, one of Nigeria’s foremost non-banking financial services and...

Business

Troyka Holdings Chair, Biodun Shobanjo, Inducted into Loeries Hall of Fame

Nigeria’s foremost advertising leader and Chairman of Troyka Holdings,...

Zenith Bank, NEM, Seplat, AIICO, Dangote Cement, First HoldCo Recognised as Nigeria’s High-Performing Companies

L-R:    Michael Ani, Manager, Investor Relations, Dangote Cement; Oluseyi...

Finance Min, Wale Edun, to Keynote FiBOP Annual Confab Oct 18

The Honourable Minister of Finance and Coordinating Minister of...

Niteon Unveils First African Manufacturers Bank to Unlock $200bn Digital Export Market

Niteon, one of Nigeria's largest digital export marketplaces, has...

FG Boosts MSME Financing with NCGC Initiative

In a bid to boost economic growth and development,...

ICT

Konga Partners Verve to Delight Customers with Free Shopping Vouchers

  Konga, Nigeria’s leading composite e-commerce platform has partnered with...

NCC Spotlights Renewable Energy on World Consumer Rights Day

  The Nigerian Communications Commission (NCC) has concluded arrangements to...

Governors, NCC Set for Broadband Awareness Forum Oct 20

All Nigeria State Governors are set to discuss how...

VerveLife 5.0 Gears Up for Nairobi, Lagos Events

Following a successful series of Verve Life 5.0 satellite...

Telecom Infrastructure Critical to Successful 2023 Elections – Danbatta

The Executive Vice Chairman of the Nigerian Communications Commission,...

Capital Market

SEC DG: Commission Considering Gradual Implementation of ISSB Standards

The Director General of the Securities and Exchange Commission...

ISSB-Aligned Disclosures Will Lower Capital Costs, Attract Global Investors — SEC

The Securities and Exchange Commission (SEC) has unveiled plans...

SEC DG to Cadets:  Invest Early, Long Term to Create Wealth

Graduating Cadets of the Nigerian Defence Academy (NDA) have...

SEC DG: Accountability, Transparency will Boost Investor Confidence in Capital Market

The Director General of the Securities and Exchange Commission...

SEC DG: Digital Assets Represent $10tn Opportunity by 2030

The Director General of the Securities and Exchange Commission...

Insurance

13-year-old Rhema-Love Abraham Emerges Winner of 2025 Heirs Insurance Essay Championship

L:R- Funmi Olotu, National Coordinator, National Social Safety-Nets Coordinating...

Leadway Assurance: Insurance Company of the Year at 2025 BAFI Awards

L-R: Managing Director, Leadway Assurance, Gboyega Lesi; Publisher, BuisnessDay...

Heirs Insurance Group Announces Inaugural Travel Festival: A Call for Inclusive Travel Ecosystem for Africans

Heirs Insurance Group (HIG), Nigeria’s fastest-growing insurance group, has...

Sovereign Trust Insurance Celebrates 2025 Customer Service Week

Sovereign Trust Insurance Plc has been actively involved in...

Leadway: 55 Years of Innovation, Expanding Financial Access, Inclusion Across West Africa

Leadway, one of Nigeria’s foremost non-banking financial services and...

Fitch Ratings: LG – Improved Financials in Midst of Present Risks

­Fitch Ratings says LG Electronics still faces an unfavourable macro-economic environment and intensifying competition in its core businesses, notwithstanding the turnaround in the company’s operating results and financial profile during 2012.

LGE reported an EBIT margin of 2.2% (2011: 0.7%) and EBITDA grew 65%, lowering gross debt to KRW6.5trn at end-2012 from KRW7.4trn at end-2011. LG Display, a key subsidiary, returned to profitability with an EBIT margin of 3.1% in 2012 while almost doubling its EBITDA to KRW5.4trn. As a result, Fitch estimates LGE’s financial leverage to have improved to about 2.5x at end-2012 from 4.4x at end-2011. In its analysis, Fitch proportionally consolidates LGE’s two major operating subsidiaries, LG Display and LG Innotek.

Fitch expects LGE’s margins to remain stable in 2013, backed by its solid market positions in the TV and appliance businesses, as well as by gradual recovery in its smartphone competitiveness. LG Display is also likely to continue its margin recovery, mainly on account of an improved product mix with higher average selling prices for its panels. However, this could be partly offset by a lower level of orders from Apple Inc. during H113.

However, risks stemming from an unfavourable operating environment have not fully abated. Fitch expects demand for consumer electronic products to remain weak due to frail global economic conditions. In addition, accommodative monetary policies overseas have contributed to the recent appreciation of the Korean won which could erode LGE’s price competitiveness. Further, the weakening Japanese yen could elevate competition in the TV industry where LGE struggled to maintain healthy margins during H212. However, Fitch does not expect LGE to lose its competitive edge over Japanese peers.

Within LGE’s smartphone business, Fitch forecasts that recovery in margin and market share will be slow but steady, despite improvement in quality and brand recognition. This is because competition is increasingly becoming fierce among second-tier manufacturers as they close in on their overall technological gap with first-tier manufacturers.

Fitch expects the industry will remain dominated by Samsung Electronics Inc. (‘A+’/Stable) and Apple Inc. at least in the short- to medium-term, making it difficult for LGE to improve its market share.

Fitch will consider revising the Outlook to Stable if LGE’s EBIT margin improves further and leverage remains below 2.5x on a sustained basis. However, Fitch may downgrade the rating if the company’s EBIT margin deteriorates and leverage is sustained above 3x with negative free cash flow.

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Topics

FedEx Acquires TNT Express

FedEx acquires TNT Express recently. The acquisition of Dutch...

Almond Insurance Industry Awards 2024 Holds Nov 1 in Lagos

The stage is now set for the 2024 Almond...

Stanbic IBTC Insurance Highlights Benefits of Life Insurance Policy

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Aliko Dangote & Arsenal FC: The 30-Year Love Affair!

Aliko Dangote, Africa's richest man, and President/CEO of the Dangote Group in passionately in Love! It is a love affair that spans over 30 years and is looking set to transform from mere relationship to something much more serious-marriage. Recent media reports have it on good authority that Dangote is set to bid for Arsenal FC, a club he has ardently supported and loved passionately for over 30 years. Listed by Forbes magazine as the 67th richest person in the world with net worth of over $17 billion, Dangote’s business interest spans from cement to various household products.

MTN Invests $16bn in Nigeria over 15 Years

The MTN Group yesterday announced its annual results for...

Stanbic IBTC Insurance Unveils Comprehensive Funeral Expenses Cover – Sunset Benefit Plan

Stanbic IBTC Insurance Limited, a subsidiary of Stanbic IBTC...

Nigeria Applauds Take-off of WTO Trade Facilitation Agreement

Nigeria received with great excitement the announcement by Roberto...

INEC Publishes Notice of Anambra State Governorship Election Nov 6

The Independent National Electoral Commission (INEC) held its regular...
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