Nedcor projects lower earnings

JOHANNESBURG – South African banking group Nedcor reiterated yesterday that it expected lower full-year earnings per share but said net interest income in the three months to end-September improved.

Nedcor, the country’s number three banking group in terms of assets, said in a trading update that it expected headline EPS, excluding translation gains or losses, to be 6-19 per cent below the 502 cents per share reported in 2003. The group is trying to turn around the business after a host of problems – including wrong interest rate calls – slashed its profits, hammered its shares and led to a 5,15 billion rand rights issue to shore up primary capital.”The group continues to pursue its target of achieving a return on ordinary shareholders’ funds of at least 20 per cent for 2007.”Expense control remains a key focus and management aims to keep the growth in operating expenditure, excluding merger and restructuring costs, below revenue growth in order to achieve this target,” Nedcor said.Nedcor is 53-per cent owned by insurer Old Mutual.It said net interest income continued to benefit from an improved funding profile and hedging strategies.Nedcor added that it was confident to exceed its 7,5 per cent Tier 1 capital target by the end of the year.Tier I capital is used to describe the capital adequacy of a bank and includes disclosed reserves and equity capital.Shares in Nedcor, which have gained 23 per cent so far this year, rose about three per cent to 71,58 rand by 1000 GMT – outperforming the JSE Securities Exchange’s banking sector which was marginally lower.-Nampa-Reuters Fox to provide TV series for wireless phones NEW YORK- The Twentieth Century Fox studio, a veteran of the big screen and the TV screen, is about to break into an entirely new realm: the really little screen, the kind that comes on a cell phone.In what appeared to be the first arrangement of its kind, Twentieth Century Fox said Wednesday it would create a unique series of one-minute dramas based on its hit show “24” exclusively for a new high-speed wireless service being offered by Vodafone PLC, the world’s biggest cell phone company.Vodafone will begin offering the one-minute episodes in January in the United Kingdom, coinciding with the start of the fourth season of the show on a satellite TV service.The “mobisodes,” as they’re being called, will be introduced later in 2005 in up to 23 more countries where Vodafone operates, mainly in Europe, as well as in the United States through the company’s Verizon Wireless joint venture.The deal is part of a broader agreement between Fox Entertainment Group and London-based Vodafone under which Fox, the entertainment unit of Rupert Murdoch’s News Corp., will develop other programming to be viewed on the phones.In March, the new Vodafone service, to be called Vodafone live! with 3G, will also offer trailers and clips of movies under a “Movie of the Month” service, the first one being “Bridget Jones: The Edge of Reason.”Cell phone operators have invested heavily to roll out high-speed wireless services, intent on driving new revenues from Internet browsing, streaming video and audio, and other forms of media.-Nampa-APThe group is trying to turn around the business after a host of problems – including wrong interest rate calls – slashed its profits, hammered its shares and led to a 5,15 billion rand rights issue to shore up primary capital.”The group continues to pursue its target of achieving a return on ordinary shareholders’ funds of at least 20 per cent for 2007.”Expense control remains a key focus and management aims to keep the growth in operating expenditure, excluding merger and restructuring costs, below revenue growth in order to achieve this target,” Nedcor said.Nedcor is 53-per cent owned by insurer Old Mutual.It said net interest income continued to benefit from an improved funding profile and hedging strategies.Nedcor added that it was confident to exceed its 7,5 per cent Tier 1 capital target by the end of the year.Tier I capital is used to describe the capital adequacy of a bank and includes disclosed reserves and equity capital.Shares in Nedcor, which have gained 23 per cent so far this year, rose about three per cent to 71,58 rand by 1000 GMT – outperforming the JSE Securities Exchange’s banking sector which was marginally lower. -Nampa-Reuters Fox to provide TV series for wireless phones NEW YORK- The Twentieth Century Fox studio, a veteran of the big screen and the TV screen, is about to break into an entirely new realm: the really little screen, the kind that comes on a cell phone.In what appeared to be the first arrangement of its kind, Twentieth Century Fox said Wednesday it would create a unique series of one-minute dramas based on its hit show “24” exclusively for a new high-speed wireless service being offered by Vodafone PLC, the world’s biggest cell phone company.Vodafone will begin offering the one-minute episodes in January in the United Kingdom, coinciding with the start of the fourth season of the show on a satellite TV service.The “mobisodes,” as they’re being called, will be introduced later in 2005 in up to 23 more countries where Vodafone operates, mainly in Europe, as well as in the United States through the company’s Verizon Wireless joint venture.The deal is part of a broader agreement between Fox Entertainment Group and London-based Vodafone under which Fox, the entertainment unit of Rupert Murdoch’s News Corp., will develop other programming to be viewed on the phones.In March, the new Vodafone service, to be called Vodafone live! with 3G, will also offer trailers and clips of movies under a “Movie of the Month” service, the first one being “Bridget Jones: The Edge of Reason.”Cell phone operators have invested heavily to roll out high-speed wireless services, intent on driving new revenues from Internet browsing, streaming video and audio, and other forms of media. -Nampa-AP