SEACOM’s revenue plummeted by 77% due to elevated operational prices and unfavourable unrealised foreign exchange losses.
Remgro revealed particulars about SEACOM’s poor monetary efficiency in its interim outcomes for the six months ended 31 December 2021. Remgro owns a 30% stake in SEACOM.
SEACOM has developed because it launched a submarine cable system alongside Africa’s Jap and Southern coasts in 2009.
The corporate now operates metropolitan, regional, and worldwide fibre networks and a continent-wide IP-MPLS community.
It supplies a set of communications and cloud companies aimed on the enterprise and enterprise market.
Its merchandise embrace high-capacity worldwide and native bandwidth companies like Worldwide personal strains, IP transit, web entry, and cloud companies.
Over the previous few years, SEACOM acquired quite a few corporations, together with Africell Uganda, Hirani Telecom’s metro fibre community, and FibreCo.
Rising its service choices and buying quite a few corporations within the telecommunication house haven’t finished a lot for SEACOM’s monetary place.
Remgro stated SEACOM solely contributed a revenue of R8 million to its headline earnings during the last yr, down 77% from the R35 million over the earlier interval.
There was solely marginal top-line development which was primarily from the wholesale enterprise. Nevertheless, it was offset by elevated operational prices and unfavourable unrealised foreign exchange losses.
MyBroadband requested Remgro for extra details about SEACOM’s income, nevertheless it stated they may not disclose extra info based mostly on its shareholder preparations on disclosure of information.
Regardless of SEACOM’s monetary challenges, Remgro is speaking up the prospects of the operator due to will increase demand in using information and cloud companies.
“SEACOM continues to adapt to the quickly evolving information market and funding in its submarine and terrestrial community to answer an ever-increasing demand,” Remgro stated.
Remgro added that SEACOM can also be introducing a extra diversified product vary that permits it to seize elevated market share by providing a greater worth proposition.
Remgro considerably elevated SEACOM’s ebook worth and intrinsic worth regardless of the drop in revenue and marginal income improve.
Remgro instructed MyBroadband the primary purpose for the intrinsic worth improve is due to the weaker rand.