Seacom’s contribution to JSE-listed investment group Remgro’s headline earnings fell by 77% in the year ended December 2021, driven lower by increased operational costs and foreign exchange losses.
Remgro owns an effective economic stake of 30% in Seacom, which operates undersea fibre assets and terrestrial fibre infrastructure in Southern and East Africa. The company has a December financial year-end, and its results for the six months to 31 December have been included in Remgro’s results for the same reporting period, published on Thursday.
Seacom contributed R8-million to Remgro’s earnings in the six-month period, down from R35-million a year earlier.
“[There was] marginal growth in the top line, primarily from the wholesale business. This, however, was offset by increased operational costs and unfavourable unrealised forex losses,” Remgro said of Seacom’s performance.
“The company continues to expand and grow business in the enterprise and service provider market, offering national long-haul, metro and last-mile fibre solutions to customers, providing high-capacity Internet, metro Ethernet and cloud services.
“Seacom continues to adapt to the rapidly evolving data market and investment in its submarine and terrestrial networks to respond to an ever-increasing demand for faster and more reliable data services. [This is] critical to maintaining its ongoing competitive positioning,” Remgro said.
“Seacom maintains a proactive approach to ensuring profitability by expanding its network and products to meet market demand, and introducing a more diversified product range that allows it to capture increased market share by offering a better value proposition.”