High interest rates sting Vumatel parent CIVH

of Vumatel and Dark Fibre Africa, reported a 96.7% plunge in headline earnings in its latest six-month reporting period as high interest rates took a toll on the debt-laden fibre company.

CIVH’s contribution to Remgro’s headline earnings amounted to R6-million, down from R184-million in the same six-month period a year ago. Extrapolated out, that means CIVH reported total headline earnings of R10.5-million, down from R323-million previously. “The decrease in earnings is mainly due to higher finance costs resulting from increased interest rates,” Remgro said. CIVH’s two main assets are Vumatel, which operates South Africa’s largest fibre-to-the-home broadband network, and Dark Fibre Africa, which provides wholesale and business fibre networks and services.

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