Infraco improves financial position
State-owned infrastructure provider has reduced its losses in the 2012 financial year. By Duncan McLeod.
State-owned telecommunications infrastructure company Broadband Infraco has reduced its net losses in the 2012 financial year ended 31 March 2012, reporting a loss for the year of R95m against a loss of R206m in the 2011 financial year.
Earnings before interest, tax, depreciation and amortisation (Ebitda) improved from a loss of R81m in 2011 to a loss of R27m in 2012.
Revenue climbed by 32% year on year, rising from R297,6m in 2011 to R393,6m in 2012. Cash from operations improved to R52m.
Public enterprises minister Malusi Gigaba says Broadband Infraco is “making steady progress with regard to financial performance and strengthening of its governance practices”.
“We are confident that the company has turned the corner and from its past experience of poor governance that attracted negative attention,” Gigaba says. “As shareholders the department of public enterprises and the Industrial Development Corp remain committed to supporting the company in fulfilling its mandate in reducing broadband costs and [improving] broadband penetration.”
The company says a “revitalisation process” resulted in the appointment of a new board of directors and a new executive management committee. This, it says, “ensured that appropriate accountability and internal controls were put in place across the organisation, thereby allowing the company to focus on expanding its operations, as well as growing its customer base, in order to regain its competitive advantage”.
During the year, the company secured new contracts from Seacom, Vodacom, Business Connexion and Namibia’s Internet Technologies. Infraco also recently entered into a new, five-year business relationship with Neotel, ending the historical “right of use” between the two entities. — (c) 2012 NewsCentral Media