Vumatel Parent CIVH Got Stung by High Interest Rates

Vumatel parent CIVH got stung by high interest rates. CIVH reported a 96.7% decline in headline earnings during its most recent six-month reporting period due to the debt-ridden fiber company being negatively impacted by high-interest rates.

Vumatel Parent CIVH Got Stung by High Interest Rates

 

Vumatel Parent CIVH Got Stung by High Interest Rates

Remgro, which owns 57% of CIVH’s shares, claims this. On Tuesday, Remgro released its interim results for the quarter that concluded on December 31, 2023.

Remgro stated, “Higher financing costs as a result of higher interest rates are primarily to blame for the decline in earnings.” Vumatel, which runs the biggest fiber-to-the-home broadband network in South Africa, and Dark Fibre Africa, which offers wholesale and business fiber networks and services, are CIVH’s two primary assets.

He added, “The group remains operationally cash generative, albeit not at the same levels as in prior periods due mainly to the higher financing costs.”

Vumatel’s Revenue Climbed by 11% to R1.8 Billion

“Reinvestment of free cash flow into an expansion of its operations and network is strategically managed and lower than prior period to preserve balance sheet strength against the backdrop of the macroeconomic challenges being experienced locally.”

According to Remgro, Vumatel’s revenue climbed by 11% to R1.8 billion in the six months ending September 30, 2023, mostly due to the company’s subscriber growth and fiber infrastructure expansion program.

Targeting lower-class households, the Reach network grew by 11%, with a rise in subscribers of 20% and a million or more Reach houses crossed. For the six months ending September 30, 2023, Dark Fibre Africa’s revenue climbed by 3% to R1.3 billion.

ALSO CHECK:

LEAVE A REPLY

Please enter your comment!
Please enter your name here