Remgro released its financial results for the year ended 30 June 2021, which revealed that Seacom improved its headline earnings by 360% over the last year.
Seacom is best known for launching Africa’s first broadband submarine cable system along the continent’s Eastern and Southern coasts in 2009.
Since then, the company has significantly expanded its product offerings, which now include enterprise connectivity, cloud solutions, security products, and ISP services.
With operations in numerous African countries, in South Africa, Kanya, Tanzania, Uganda, and Mozambique, it has become a big telecoms player on the continent.
As a 30% shareholder in Seacom, Remgro provides insight into the company’s financial performance through its results announcements.
Remgro’s results for the year ended 30 June 2021 shows that Seacom increased its earnings from a R33 million loss in 2020 to an R87 million profit in 2021.
This 360% improvement, Remgro said, came despite the negative impact of the Covid-19 pandemic on sales in South Africa and Kenya.
While the financial performance of Seacom improved significantly over the last year, the company’s valuation declined from R3.03 billion to R2.66 billion.
This decline is a result of the USD/ZAR exchange rate. The USD/ZAR exchange rate as of 30 June 2021 was R14.28, while it was R17.35 on 30 June 2020.
So, while Seacom’s valuation decreased on a Rand-basis, it increased on a USD basis.