Community Investment Ventures Holdings (CIVH) has reported a significant increase in its contribution to Remgro's earnings, driven by the completion of the Maziv transaction. The Stellenbosch-based group's telecom infrastructure unit, which now trades as Maziv, saw its contribution to group headline earnings rise to R319m, compared to a loss of R93m in the previous period. This growth is attributed to the merger with Vodacom's fibre business, which was completed at the end of 2025.
The merger, valued at R13bn, brings together Vodacom's fibre business with Remgro's Maziv, creating a larger and more competitive player in the South African fibre market. Maziv comprises several fibre businesses, including Vumatel, Dark Fibre Africa (DFA), Herotel, SADV, Rise Telecoms, and BritelinkMCT. The combined entity is expected to drive growth and profitability for Remgro, which owns 57% of CIVH. Harith General Partners holds a 38% stake, with the balance held by other investors.
CIVH's revenue for the 12 months ended in March increased by 13.8% to R7.689bn, driven by gains at Maziv. Vumatel, the group's primary growth engine, reported revenue growth of 15.3% to R4.43bn, while DFA's income rose 8.9% to R3bn. The growth in revenue was driven by increased subscribers at Vumatel and higher demand for DFA's fibre-to-the-business (FTTB) products. This strong revenue growth, combined with a focus on cost management, resulted in significant operating profit growth for both Vumatel and DFA.
Vumatel's operating profit grew by 57% to R2.157bn, while DFA's operating profit rose 10.1% to R1.243bn. CIVH's earnings before interest, tax, depreciation, and amortisation (ebitda) from continuing operations increased by 11.2%, driven by the acquisition of the Vodacom assets and robust operational performances from each of Maziv's major fibre businesses. The company's results were also boosted by the completion of the takeover of Herotel in 2025.
Remgro received pre-implementation dividends from CIVH of R3.055bn on completion of the Vodacom and Herotel transactions. The group's other telecom investment, Seacom, also reported a significant jump in earnings, with its contribution to group headline earnings amounting to R71m, up from R12m in the prior period. Seacom has been classified under "other infrastructure" due to its relatively small size in the portfolio.
Remgro's telecom division had initially acquired a 45% non-controlling stake in Herotel through its Vumatel unit in February 2022. The acquisition of Herotel and the merger with Vodacom's fibre business have significantly expanded CIVH's presence in the South African fibre market. CIVH's growth is expected to continue, driven by the increasing demand for fibre-based services in South Africa.
Remgro cautioned that CIVH's results are not directly comparable with those of the prior year due to the significant Maziv transaction. However, the company's strong revenue growth and operating profit increases suggest a positive outlook for the business. Key points include: CIVH's contribution to Remgro's headline earnings rose to R319m; revenue increased by 13.8% to R7.689bn; and Vumatel's operating profit grew by 57% to R2.157bn.
Key points
- CIVH's revenue increased by 13.8% to R7.689bn
- Vumatel's operating profit grew by 57% to R2.157bn
- CIVH's contribution to Remgro's headline earnings rose to R319m
