DFA and Vumatel recorded a massive jump in profits of 900% over the last six months of 2022, according to Remgro’s most recent results.
The holding company said that the two fibre infrastructure providers’ parent Community Investment Ventures Holdings (CIVH) contributed R184 million to Remgro’s headline earnings for the second half of 2022.
That was based on CIVH’s performance over the six months ending September 2022.
The profit represents a significant turnaround from a loss of R23 million over the same period in 2021.
Remgro explained that DFA and Vumatel saw a 14% increase in revenue due to network expansion over the last two years.
That resulted in operating earnings jumping from R696 million for the six months ended September 2021 to R1.176 billion over the same period ending in September 2022.
“The group is operationally cash generative and continues to reinvest any excess operating cash flow and capital into expanding its operations and network footprint, with a continued principle of limiting overbuild in key markets,”
Remgro said that Vumatel remained South Africa’s fibre-to-the-home (FTTH ) leader, both in terms of homes passed and connected, with respective market shares of 36% and 34%.
“Vumatel remains a growth asset for the group as it continues infrastructure expansion into identified lower Living Standards Measure (LSM) areas and accelerating connections in both its traditional core network and lower LSM areas,”
Between April and September 2022, Vumatel group’s revenue increased by 14.2% to R1.642 million compared to the prior period of R1.438 million.
Remgro attributed this to its fibre infrastructure expansion program and subscriber uptake growth for the period.
Vumatel’s underlying operating earnings also increased by 16.7% to R565 million for the six months to 30 September 2022.
DFA’s underlying operating earnings surged by a whopping 112.8% — from R304 in September 2021 to R647 million in September 2022.
Its revenue from continuing operations also increased by 10.5% to R1.297 billion, compared to R1.174 million by 30 September 2021.
In addition, DFA’s annuity income increased to R210 million per month, up from R192 million per month the year before.
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