Vumatel parent CIVH reduces losses

Remgro-controlled CIVH reduced its losses in the year ended 30 June 2021, with its contribution to headline earnings of a loss of R435-million, from R649-million a year ago.

Remgro held 55.2% of CIVH – which owns assets such as fibre operators Vumatel and Dark Fibre Africa (DFA) – at the end of the reporting period, meaning that for the full year, the telecommunication infrastructure business turned in a total headline loss of R788-million.

“Included in CIVH’s comparative year are once-off costs relating to the financing of the Vumatel acquisition, as well as costs incurred on CIVH’s debt refinance process, which was finalised in December 2019,” Remgro said in notes alongside its latest results.

“The decrease in losses is also due to an increase in annuity income at DFA and subscriber growth at Vumatel,” it added.

DFA’s revenue increased marginally to R2.48-billion, impacted by lower once-off revenue due to Covid-19. “DFA’s annuity income amounted to R192-million/month on 31 March 2021 (31 March 2020: R179-million/month). Vumatel’s revenue increased by 50.1% to R2.4-billion, driven by accumulated subscriber uptake growth.”

In January this year, Remgro subscribed for 54 738 shares in CIVH for a total amount of R1.64-billion in terms of a a rights issue. This share subscription increased Remgro’s interest in CIVH from 54.7% to 55.2%.

Further rights offer

Following the June year-end, Remgro subscribed for a further 67 364 shares in CIVH for a total amount of R2.1-billion under a second rights issue, increasing Remgro’s interest in CIVH to 55.5%.

The proceeds of both rights issues were used to reduce CIVH’s debt, as well as to unlock capital expenditure facilities for further growth, Remgro said.  — © 2021 NewsCentral Media