A landmark Vodacom transaction, alongside strong operational showings from Vumatel and Dark Fibre Africa, has propelled Remgro’s fibre infrastructure arm, CIVH, into profitability.
In interim results for the six months to 31 December 2025, released on Wednesday, Remgro revealed that CIVH recorded headline earnings of R216-million – a marked improvement from the R248-million loss in the comparative period.
The fibre unit’s contribution to Remgro’s headline earnings similarly strengthened to R123-million, reversing a loss of R141-million a year prior.
CIVH contributed a profit of R123 million to Remgro’s headline earnings, a sharp improvement from the R141 million loss a year earlier.
The earnings uplift was largely attributable to stronger operational performances across the CIVH group’s core fibre platforms for the six months ended 30 September 2025, with Dark Fibre Africa (DFA) and Vumatel both reporting solid revenue growth on the back of increased demand in enterprise and residential markets.
Notably, the prior comparative period included a negative fair value adjustment of R98 million on an interest rate hedge (R56 million at Remgro’s share).
For the six-month period, CIVH’s revenue rose by 11.1%, with EBITDA from continuing operations increasing by 10.9%. DFA recorded revenue growth of 3.6%, supported by sustained demand in fibre-to-the-business (FTTB) and fibre-to-the-tower (FTTT) segments, while Vumatel’s revenue grew by 15.4%, reflecting strong subscriber growth, higher average revenue per unit (ARPU), and a gradual return to fibre network expansion.
In line with the growth momentum in headline earnings during the 2025 financial year, Remgro experienced strong cash flow generation at the centre for the period under review, mainly due to a 34% increase in sustainable dividends received from investee companies amounting to R2.4 billion (six months to 31 December 2024: R1 816 million). This amount excludes inter alia the CIVH pre-implementation dividend of R2 661 million, which was received on completion of the CIVH/Vodacom Proprietary Limited (Vodacom) transaction during December 2025.
It was previously reported that Vodacom and CIVH entered into agreements for Vodacom to acquire 30% of Maziv Proprietary Limited (Maziv) through a combination of R4.9 billion in assets and R6.1 billion in cash, with an option to acquire a further stake of up to 34.95% indirectly from Remgro.
On 26 November 2025, Remgro announced that the Independent Communications Authority of South Africa (ICASA) had approved the transaction, and with all other conditions precedent met, implementation took effect on 1 December 2025. Vodacom has not yet exercised the option to acquire an additional 4.95% of Maziv, which has since been extended to 31 March 2027, while Remgro’s 57.0% interest in CIVH remains unchanged.
As a result of the transaction, Remgro’s indirect interest in DFA and Vumatel was diluted following Vodacom’s entry as a Maziv shareholder, though Remgro gained an indirect interest in the assets contributed by Vodacom. In addition, the transaction agreements provided for a pre-implementation dividend to CIVH shareholders, which saw Remgro receive a dividend of R2 661 million from CIVH in December 2025.
Remgro’s operating profit increased by R481 million to R1.4 billion (2024: R991 million), reflecting lower depreciation charges, the positive impact of operating leverage, sustained network investment at DFA and Vumatel, and improved utilisation of existing infrastructure.
DFA is South Africa’s premier open-access wholesale fibre infrastructure and connectivity provider, designing, building, operating, and maintaining a high-capacity fibre network that carries metropolitan and long-haul telecommunications traffic. Network capacity is leased to mobile network operators and internet service providers (ISPs).
DFA operates a fibre footprint exceeding 14 500 kilometres across major metropolitan areas including Johannesburg, Cape Town, Durban, Midrand, Centurion, and Pretoria, as well as secondary metros such as East London, Polokwane, Tlokwe, Emalahleni, and George. Revenue for the six months ended 30 September 2025 increased by 3.6% to R1 435 million (2024: R1 385 million), underpinned by sustained demand in the fibre-to-the-business (FTTB) and fibre-to-the-tower (FTTT) segments.
Vumatel is an open-access fibre-to-the-home (FTTH) wholesale infrastructure provider that leases network capacity to ISPs, which in turn deliver broadband services to end customers. The business is the South African market leader by both homes passed and homes connected, holding an estimated market share of approximately 30.3% of homes passed and 31.4% of homes connected.
Vumatel remains a key growth asset for the group, continuing to expand its infrastructure footprint into lower Living Standards Measure (LSM) areas while growing connections across its traditional Core network and lower LSM Reach segments. Revenue for the six months ended 30 September 2025 increased by 15.4% to R2 172 million (2024: R1 882 million), driven by strong subscriber uptake, higher average revenue per unit (ARPU), and a gradual resumption of fibre infrastructure expansion.
Maziv continues to support Corporate Social Investment (CSI) initiatives aimed at creating sustainable ecosystems in the communities where it operates. Focus areas include education, health, social upliftment, and the environment. The business remains committed to its schools project, which has connected 963 schools with 1 Gbps broadband services.
Subsequent to 30 September 2025, and following receipt of all required regulatory approvals, the Vodacom transaction was successfully implemented with effect from 1 December 2025, resulting in Vodacom acquiring a 30% equity interest in Maziv. The transaction included Maziv’s acquisition of fibre and transmission assets valued at R4.89 billion, as well as Vodacom’s subscription for newly issued ordinary shares in Maziv for a total consideration of R6.11 billion.
