Remgro, with a 57% ownership in CIVH, revealed that CIVH contributed R206 million to its headline earnings for the year ending June 2023, a significant increase from R47 million the previous year. This boost is attributed to improved performances by CIVH’s core businesses, mainly DFA and Vumatel, driven by network expansion, although offset by higher finance costs.
DFA saw a 6.8% revenue increase to R2.6 billion, with annuity income reaching R213 million per month in March 2023, compared to R198 million per month in 2022.
Meanwhile, Vumatel experienced a 15.1% revenue surge to R3.4 billion, propelled by fibre infrastructure expansion and growing subscriber uptake.
Remgro also noted contributions of R61 million from Grindrod and R47 million from SEACOM, highlighting that Grindrod was equity accounted until September 26, 2022, when Remgro agreed to unbundle the investment.
Despite regulatory challenges, Remgro and CIVH remain committed to their proposed transaction with Vodacom, believing it will benefit South African consumers and the broader economy.
Vodacom has offered R4.2 billion in network assets and R6 billion in cash to acquire 40% of Maziv’s shares, which hold CIVH’s interests in Vumatel and DFA.
The Competition Commission South Africa recommended prohibiting the transaction in August 2023, but it awaits a final decision from the Competition Tribunal.
