Latest news with #OldMutual
The Herald
8 hours ago
- Business
- The Herald
Innovate Africa: Inside the future – a conversation with Vuyo Mpako from NEXT176
NEXT176 is Old Mutual Group's new growth and innovation arm. While the parent company has been around for 180 years, NEXT176 is focused on what's next, backing bold ideas that can improve people's lives across Africa. Led by MD Vuyo Mpako, the team is working to make a difference in health, education, jobs, financial wellbeing, sustainability and debt management. Their goal is to have an impact on 1-billion lives on the African continent. In our interview, Mpako shares the hard lessons of corporate venturing, how NEXT176 bridges the gap between start-up speed and corporate structure, and why partnering with the likes of SC Ventures makes sense when trying to build financial tools that work for everyone. This is a conversation about real-world innovation, what it takes, what's working and where it's going. TimesLIVE
The Citizen
3 days ago
- Business
- The Citizen
The hidden costs of gambling
South Africans place over R1 trillion in bets annually, with R700 billion spent on sports betting alone. For many, particularly those with limited financial resources, the appeal of a big win can be incredibly tempting. However, the reality is often more complex. Instead of earning easy money, those who indulge in excessive gambling frequently face financial strain, says John Manyike, Head of Financial Education at Old Mutual. In March, an online betting platform shared a story of someone turning a R4 wager into an astounding R83,701.54. While stories like this grab attention, the rise in online sports betting also brings important considerations. According to the National Gambling Board's 2022/23 gambling statistics, sports betting in South Africa has expanded significantly over the past decade, growing from under 10% of the gambling sector in 2009/10 to over half in 2022/23. 'What stands out is that 36% of those who gamble do so to pay off debts or cover expenses,' explains Manyike, referring to the 2024 Old Mutual Savings and Investment Monitor. Among low-income earners (those earning between R8,000 and R15,000 per month), this figure rises to 41%, highlighting a concerning trend. Understanding the risks Despite rising costs of living and economic pressures, gambling has gained popularity, particularly due to the widespread use of mobile phones and internet access. This is especially evident among young African men. Advertising from betting companies further fuels this trend, increasing participation within this demographic. 'This can be risky, particularly for young people and low-income earners, who may see gambling as a way to improve their financial situation,' says Manyike. However, he notes that losses can add up quickly, sometimes leading to financial stress. 'In a country already facing high unemployment and economic challenges, it's important to be aware of the potential financial pitfalls of gambling.' A game of chance, not strategy Unlike investing, gambling is based purely on luck, yet many believe they can develop a winning approach. The truth is that the house edge ensures that bookmakers maintain a profit over time. For instance, when odds are at -110 on both sides of a bet, a bettor must risk R110 to win R100, meaning even skilled bettors face a statistical disadvantage in the long run. The belief that that the system can be beaten can lead to risky financial decisions. 'Beyond financial losses, gambling can also take a psychological toll,' says Manyike. 'It can lead to stress, anxiety, and even a cycle of chasing previous bets in the hope of recovering losses.' A 2016 study by the University of Cape Town's Department of Psychiatry and Mental Health noted a significant association between suicidality and pathological gambling. It found that pathological gamblers were five to ten times more likely to have a history of suicide attempts than non-gamblers. Furthermore, gambling doesn't just affect individuals—it can have ripple effects on families, sometimes resulting in financial strain for loved ones. 'While gambling is legal,' Manyike points out, 'many people don't fully understand the long-term risks involved due to a lack of financial education.' For those who feel their gambling habits might be affecting their financial well-being, Manyike advises seeking support. 'The South African Responsible Gambling Foundation offers free and confidential counselling services,' he says. Additionally, professional counsellors who specialise in gambling addiction can provide guidance. 'Gambling is not a reliable source of income, and without careful management, it can lead to serious financial setbacks,' concludes Manyike. 'By increasing financial awareness and promoting responsible gambling, we can help people make informed decisions and avoid unnecessary financial risks.' At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
IOL News
3 days ago
- Business
- IOL News
The hidden costs of SA's gambling crisis
In March, an online betting platform shared a story of someone turning a R4 wager into an astounding R83,701.54. While stories like this grab attention, the rise in online sports betting also brings important considerations. South Africans place more than R1 trillion in bets annually, with R700 billion spent on sports betting alone. For many, particularly those with limited financial resources, the appeal of a big win can be incredibly tempting. However, the reality is often more complex. Instead of earning easy money, those who indulge in excessive gambling frequently face financial strain, said John Manyike, Head of Financial Education at Old Mutual. According to the National Gambling Board's 2022/23 gambling statistics, sports betting in South Africa has expanded significantly over the past decade, growing from under 10% of the gambling sector in 2009/10 to over half in 2022/23. 'What stands out is that 36% of those who gamble do so to pay off debts or cover expenses,' explained Manyike, referring to the 2024 Old Mutual Savings and Investment Monitor. Among low-income earners (those earning between R8,000 and R15,000 per month), this figure rises to 41%, highlighting a concerning trend. Despite rising costs of living and economic pressures, gambling has gained popularity, particularly due to the widespread use of mobile phones and internet access. This is especially evident among young African men. Advertising from betting companies further fuels this trend, increasing participation within this demographic. 'This can be risky, particularly for young people and low-income earners, who may see gambling as a way to improve their financial situation,' says Manyike. However, he notes that losses can add up quickly, sometimes leading to financial stress. 'In a country already facing high unemployment and economic challenges, it's important to be aware of the potential financial pitfalls of gambling.' Unlike investing, gambling is based purely on luck, yet many believe they can develop a winning approach. The truth is that the house edge ensures that bookmakers maintain a profit over time. For instance, when odds are at -110 on both sides of a bet, a bettor must risk R110 to win R100, meaning even skilled bettors face a statistical disadvantage in the long run. The belief that that the system can be beaten can lead to risky financial decisions. 'Beyond financial losses, gambling can also take a psychological toll,' said Manyike. 'It can lead to stress, anxiety, and even a cycle of chasing previous bets in the hope of recovering losses.' A 2016 study by the University of Cape Town's Department of Psychiatry and Mental Health noted a significant association between suicidality and pathological gambling. It found that pathological gamblers were five to ten times more likely to have a history of suicide attempts than non-gamblers. Furthermore, gambling doesn't just affect individuals—it can have ripple effects on families, sometimes resulting in financial strain for loved ones. 'While gambling is legal many people don't fully understand the long-term risks involved due to a lack of financial education.' For those who feel their gambling habits might be affecting their financial well-being, Manyike advises seeking support. 'The South African Responsible Gambling Foundation offers free and confidential counselling services,' he added. Additionally, professional counsellors who specialise in gambling addiction can provide guidance. 'Gambling is not a reliable source of income, and without careful management, it can lead to serious financial setbacks. By increasing financial awareness and promoting responsible gambling, we can help people make informed decisions and avoid unnecessary financial risks,' Manyike concluded.
Yahoo
4 days ago
- Business
- Yahoo
Here's Why Old Mutual (JSE:OMU) Has Caught The Eye Of Investors
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should. In contrast to all that, many investors prefer to focus on companies like Old Mutual (JSE:OMU), which has not only revenues, but also profits. Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS) outcomes. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Over the last three years, Old Mutual has grown EPS by 5.9% per year. While that sort of growth rate isn't anything to write home about, it does show the business is growing. One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. Our analysis has highlighted that Old Mutual's revenue from operations did not account for all of their revenue in the previous 12 months, so our analysis of its margins might not accurately reflect the underlying business. Old Mutual maintained stable EBIT margins over the last year, all while growing revenue 5.4% to R105b. That's a real positive. In the chart below, you can see how the company has grown earnings and revenue, over time. To see the actual numbers, click on the chart. See our latest analysis for Old Mutual The trick, as an investor, is to find companies that are going to perform well in the future, not just in the past. While crystal balls don't exist, you can check our visualization of consensus analyst forecasts for Old Mutual's future EPS 100% free. As a general rule, it's worth considering how much the CEO is paid, since unreasonably high rates could be considered against the interests of shareholders. Our analysis has discovered that the median total compensation for the CEOs of companies like Old Mutual with market caps between R36b and R115b is about R28m. Old Mutual's CEO took home a total compensation package worth R18m in the year leading up to December 2024. That comes in below the average for similar sized companies and seems pretty reasonable. CEO compensation is hardly the most important aspect of a company to consider, but when it's reasonable, that gives a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of good governance, more generally. As previously touched on, Old Mutual is a growing business, which is encouraging. On top of that, our faith in the board of directors is strengthened by the fact of the reasonable CEO pay. So based on its merits, the stock deserves further research, if not an addition to your watchlist. You still need to take note of risks, for example - Old Mutual has 1 warning sign we think you should be aware of. There's always the possibility of doing well buying stocks that are not growing earnings and do not have insiders buying shares. But for those who consider these important metrics, we encourage you to check out companies that do have those features. You can access a tailored list of South African companies which have demonstrated growth backed by significant insider holdings. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
IOL News
27-05-2025
- Business
- IOL News
SA inflation at 2. 8%: Why it feels higher and how to calculate your personal inflation rate
Although the official inflation rate is 2.8%, many South Africans feel prices are rising faster than that. To help people understand their personal cost increases, Statistics South Africa offers a DIY guide on its website for calculating individual inflation based on personal spending Image: Ayanda Ndamane/ Independent Newspapers. With the official inflation rate at 2.8%, consumers may be asking themselves how this is possible because their experience at the till point belies the number recently put out by Statistics South Africa. The official statistics agency has, however, made it easy for people to calculate their own inflation basket. On its website, it provides a do-it-yourself guide to working out how much items are going up each month for the ordinary South African. Last Wednesday, Statistics South Africa issued the latest Consumer Price Index (CPI) print, which went up from 2.7% in March to 2.8% in April. This increase in the cost of living was a bit higher than Old Mutual chief economist Johann Els had expected (2.6% to 2.5%), although it was lower than what Investec chief economist Annabel Bishop had anticipated (closer to 3%). The data indicated that the higher rate was driven by housing and utilities, food and non-alcoholic beverages, alcoholic beverages and tobacco, as well as restaurants and accommodation services. So, how do you calculate your own household CPI? Focusing on the example of education, Statistics South Africa said that the first step was to look through the 391 products in its Excel dataset to identify those associated with education. Statistics South Africa does not include all items on which consumers spend money in every monthly basket. In the spreadsheet, it said, there are 20 items relevant to education, which are across different categories in its CPI basket, which was last updated in January. For example, it noted, school uniform items are classified under clothing and footwear, while textbooks and books are listed under recreation, sport and culture. Consumers may also want to add aspects such as sporting equipment. Building a separate spreadsheet for all these items is advised. The second step Statistics South Africa details is identifying the weights associated with the product, which are also in the spreadsheet. This determines each item's contribution to increases in total household spending. For example, school jerseys account for 0.07%. Adding together the 20 items Statistics South Africa identified for its example, the weight of education in terms of this category's contribution to increases in cost of living, it gets to 3.61%. The agency then demonstrated the calculations (third step) that are required to work out each product's contribution to its custom basket, which requires adjusting weights. This is done by dividing the basket weight for each product as listed in the spreadsheet by the total of 3.61%. For example, the calculation for school jerseys is: 0.07/3.61 = 0.020, which provides the weight of school jerseys in terms of the custom basket for education. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Calculate a weight for each product in the custom basket Image: Stats SA Step four involves requires sourcing price indices for two time periods from the spreadsheet that will, eventually, provide the inflation rate for our custom basket. In this example, indices for February 2025 and March 2025 are selected, which will show the month-on-month increase for the basket when all the calculations are complete. Source product-level price indices from published data Image: Stats SA Step five is to calculate two price indices (one for February and one for March) for the custom basket as a whole. 'This is the trickiest part of the exercise but can be easily done in Excel,' said Statistics South Africa. (Or one could use an alternative software provider's tools.) Two calculations are involved. First, determine a weighted index for each product by multiplying the product's price index by its weight. For example: School jerseys: 101.1 x 0.020 = 2.02 This needs to be done for each product in the list, it explains, which will result in 20 weighted indices for February. The second calculation is to add up all these weighted indices to give us an aggregate index for our basket, which is 100.1 for February. The same method returns an overall index of 103.9 for March. Calculate price indices for the custom basket as a whole Image: Stats SA Finally, it noted, the sixth step is to calculate the percentage change in price – which then provides the inflation rate – for the custom basket using these the February and March indices. Subtract the February index from the March index, divide the difference by the February index and multiply by 100: [(103.9 – 100,1) / 100.1] x 100 = 3.8 This will show that the increase in the overall price of education – based on the products in the customised list – increased by 3.8% between February 2025 and March 2025. Calculate percentage change in price for the custom basket Image: Stats SA The same percentage change formula is used to calculate an inflation rate for each of the 20 products. The price of school socks decreased by 0.3 percentage points between February and March. Fees for public secondary education and after-school centres increased by 6.8 percentage points. The information to work out a do-it-yourself basket is available on the Statistics South Africa website. IOL
