CIVH, the Remgro-controlled parent company of fibre network operator Maziv – which owns Vumatel and Dark Fibre Africa (DFA) – reported a loss in earnings for the six months ending December 2024.

JSE-listed Remgro disclosed that CIVH’s contribution to its headline earnings amounted to a R141 million loss, compared to a R6 million profit in the prior year’s period.

“The decrease in earnings is mainly due to increased borrowing costs due to higher average debt balances and a negative fair value adjustment on an interest rate hedge, totalling R232 million (Remgro’s portion being R132 million),” said Remgro.

Despite the loss, CIVH’s revenue for the six months ended 30 September 2024 rose 7.9% to R3.4 billion, driven by subscriber growth at Vumatel and increased demand for DFA’s fibre-to-the-business (FTTB) products. EBITDA from continuing operations also climbed 6.5%, as the company invested in security and maintenance to safeguard workers while maintaining network reliability.

DFA & Vumatel Performance

• DFA, South Africa’s leading open-access fibre provider, saw revenue grow 3.5% to R1.3 billion, with monthly annuity revenue up 6% to R228 million. Its network spans over 14,351 km across major metros.
• Vumatel, the FTTH market leader with 33% market share, reported an 11.1% revenue increase to R2 billion, fueled by infrastructure expansion and subscriber growth in lower-income areas.

Vodacom deal in jeopardy

Remgro and Vodacom’s proposed deal, where Vodacom would acquire 30-40% of Maziv (holding Vumatel and DFA) for R10.2 billion, faces regulatory hurdles. The Competition Tribunal blocked the transaction in October 2024, with an appeal set for 22-24 July 2025.

“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 Appeal Court, it will deliver significant benefits to South African consumers and the broader economy,” said Remgro.

The companies argue the deal would expand affordable fibre access, create jobs, and boost economic growth, particularly in underserved areas.

Maziv Chair Slams Vodacom Deal Rejection Says ‘Justice Delayed, Justice Denied’

By Staff Writer2024-11-17Updated:2024-11-19No Comments5 Mins Read

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Pieter Uys. Picture: RUVAN BOSHOFF

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Maziv chair Pieter Uys has criticised the Competition Tribunal’s decision to reject Vodacom’s proposed acquisition, describing it as a case of “justice delayed and justice denied.”

In a bold statement, Uys expressed disappointment with the ruling, emphasising its implications for business growth and market competition in South Africa.

The decision has sparked widespread debate, with stakeholders weighing in on its potential impact on the telecoms sector.

 

Speaking to Business Times, Uys said the decision undermines government assurances to investors that South Africa is “open for business.”

“This is not the message we want to send out to the world. The president [Cyril Ramaphosa] stands up every year and says he’s calling industry to commit to infrastructure investment. This is a perfect example of infrastructure investment, and the public interest benefits we’ve committed to make it a no-brainer,” he said.

Vodacom-Maziv: A Contrarian View

What’s more, the claim that Vodacom suddenly wants to provide affordable broadband for rural South Africans rings hollow.

By Paul Colmer2024-11-06Updated:2024-11-11No Comments6 Mins Read

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Paul Colmer, Exco member at Wireless Access Provider’s Association (WAPA)

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Ever since the news broke last week that Vodacom, South Africa’s largest cellular network operator, had its bid to buy fibre network operator Maziv blocked by the Competition Commission, we’ve been inundated by sob-stories of how this “setback” will “widen digital exclusion” in the country’s rural and underserviced areas.

To be direct: digital exclusion isn’t an issue in rural areas. Some of these communities are well served by smaller wireless data operators – it’s just that the large cellular providers with extensive coverage and with high pricing models aren’t one of them, and have created that exclusion.

WAPA (the Wireless Access Providers Association) applauds the recent decision by the Competition Commission, which we believe is in the interest of consumers getting a fair price for their broadband internet connection. The idea that blocking the Vodacom-Maziv deal is a setback for the entire industry is complete nonsense. It is only a setback for the companies involved in the deal.