South African ICT group Reunert has published its interim results for the six months ended 31 March 2014 (1H 2014), reporting that profit generated by its subsidiary Nashua Mobile plunged by 41% year-on-year to ZAR60.4 million (USD5.82 million) from ZAR101.8 million in the corresponding period of 2013, while operating profit declined by 35% to ZAR85.6 million. The negative development came on the pack of a 2% annual decrease in revenues, from ZAR1.85 billion in 1H 2013 to ZAR1.81 billion.
As previously reported by TeleGeography’s CommsUpdate, in April 2014 Nashua Mobile confirmed that, as soon as its subscribers are migrated to domestic cellcos Vodacom and MTN, it will cease its operations. The decision was taken as ‘it is unlikely that the business would generate acceptable returns’. Reunert said that the sale proceeds will be used to settle liabilities of Nashua Mobile, and for the payment of dividends and/or the repurchase of Reunert shares. Mark Taylor, Reunert executive director and Nashua Mobile CEO, commented: ‘This was a strategic decision on our part. Our priority now is to ensure that we maintain our service levels to our customers and that they are migrated seamlessly.’ The transaction is subject to approval from the relevant authorities.