Seacom, the privately owned cable company helping to bring broadband to Africa, made a ZAR30 million (US$3.2 million) loss during the six months ending December 2012.
One of the reasons for the loss has been put down to delays with implementation of its cable through Egypt.
The results are according to listed company Remgro, which says its share of the loss amounts to ZAR7 million.
HumanIPO reported this week that Seacom’s former group strategy and business development executive, Aidan Baigrie, believed while cable companies were still relevant they needed to re-evaluate their business model.
The losses are however, down on the same period in 2011 which was ZAR75 million – Remgro suffered ZAR19 million of that loss.
Remgro said: “Delays with the implementation of the cable through Egypt, have resulted in additional unforeseen operational costs which are not expected to recur in future.
“Seacom maintains a proactive approach to ensuring profitability, by implementing various initiatives to cut back on costs.”
HumanIPO reported earlier this month Seacom was due to upgrade its submarine cable network on the Southern and Eastern African coastlines to meet growing demand for affordable internet access in East Africa.
