CIVH, the Remgro-controlled holding company whose investments – through Maziv – include Vumatel and Dark Fibre Africa, has reported a big jump in headline earnings.
That’s according to Remgro, which published its results for the year ended 30 June 2023 on Thursday. Remgro said CIVH’s contribution to its headline earnings amounted to R206-million for the year, up from R47-million in 2022.
Because Remgro owns 57% of CIVH, it’s simple to calculate that CIVH reported headline earnings for the year of R361-million, from R82-million previously.
“The increase in earnings is mainly due to improved performances by CIVH’s underlying businesses. The performance of the underlying businesses, being mainly DFA and Vumatel, improved due to network expansion, partly offset by an increase in finance costs.”
DFA’s revenue increased by 6.8% to R2.7-billion, while its annuity income increased to R213-million/month as at 31 March 2023 (31 March 2022: R198-million/month). Vumatel’s revenue increased by 15.1% to R3.4-billion, driven by its fibre infrastructure expansion programme and subscriber uptake growth, Remgro said.
Meanwhile, Remgro said it remains committed to concluding a transaction with Vodacom involving the CIVH assets. This is despite a recommendation by the Competition Commission that the deal be barred.
Vodacom and Vumatel
Vodacom has offered R4.2-billion in network assets and at least R6-billion in cash to buy as much as 40% of the shares in Maziv, which holds CIVH’s interests in Vumatel and DFA.
That deal will dilute Remgro’s stake in the companies’ fibre assets, but it will gain an indirect interest in the fibre assets contributed by Vodacom.
Watch | A tour of Vumatel’s Alexandra fibre roll-out
First, though, the parties must convince the Competition Tribunal that the commission was wrong to recommend that the deal be blocked.
“Remgro and CIVH remain committed to the proposed transaction and firmly believe that, should the implementation of the proposed transaction ultimately be permitted by the Competition Tribunal, it will deliver significant benefits to South African consumers and the broader economy.” — © 2023 NewsCentral Media