SEACOM’s profit plummeted by 77% because of increased operational costs and unfavourable unrealised forex losses.<\/p>\n
Remgro revealed details about SEACOM’s poor financial performance in its interim results for the six months ended 31 December 2021. Remgro owns a 30% stake in SEACOM.<\/p>\n
SEACOM has evolved since it launched a submarine cable system along Africa’s Eastern and Southern coasts in 2009.<\/p>\n
The company now operates metropolitan, regional, and international fibre networks and a continent-wide IP-MPLS network.<\/p>\n
It provides a suite of communications and cloud services aimed at the business and enterprise market.<\/p>\n
Its products include high-capacity international and local bandwidth services like International private lines, IP transit, internet access, and cloud services.<\/p>\n
Over the past few years, SEACOM acquired numerous companies, including Africell Uganda, Hirani Telecom’s metro fibre network, and FibreCo.<\/p>\n
Growing its service offerings and acquiring numerous companies in the telecommunication space have not done much for SEACOM’s financial position.<\/p>\n
Remgro said SEACOM only contributed a profit of R8 million to its headline earnings over the last year, down 77% from the R35 million over the previous period.<\/p>\n
There was only marginal top-line growth which was primarily from the wholesale business. However, it was offset by increased operational costs and unfavourable unrealised forex losses.<\/p>\n
MyBroadband asked Remgro for more information about SEACOM’s revenue, but it said they could not disclose more information based on its shareholder arrangements on disclosure of info.<\/p>\n
Despite SEACOM’s financial challenges, Remgro is talking up the prospects of the operator thanks to increases demand in the use of data and cloud services.<\/p>\n
“SEACOM continues to adapt to the rapidly evolving data market and investment in its submarine and terrestrial network to respond to an ever-increasing demand,” Remgro said.<\/p>\n
Remgro added that SEACOM is also introducing a more diversified product range that allows it to capture increased market share by offering a better value proposition.<\/p>\n
Remgro significantly increased SEACOM’s book value and intrinsic value despite the drop in profit and marginal revenue increase.<\/p>\n
Remgro told MyBroadband the main reason for the intrinsic value increase is because of the weaker rand.<\/p>\n
SEACOM’s profit plummeted by 77% because of increased operational costs and unfavourable unrealised forex losses.<\/p>\n","protected":false},"author":23,"featured_media":438628,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[3],"tags":[35,21387,317],"class_list":["post-438614","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-telecoms","tag-headline","tag-remgro","tag-seacom"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/438614"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=438614"}],"version-history":[{"count":2,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/438614\/revisions"}],"predecessor-version":[{"id":438636,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/438614\/revisions\/438636"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/438628"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=438614"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=438614"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=438614"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}