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Reunert H1 earnings up 11%, mobile unit sale helps

Nashua Mobile unit was not viable in the face of tough competition from MTN and Vodacom, the group said.

South African electronics and electrical group Reunert posted an 11% rise in first-half headline earnings per share on growth in operating profit and income from the sale of its Nashua Mobile unit.

Reunert, which owns power cable and office printer businesses said on Tuesday diluted headline earnings per share rose to 264.8 cents in the six months to end-March from 238.5 cents a year earlier. Headline EPS is the main profit measure in South Africa that excludes one-off items.

The company sold South Africa’s largest independent cellular service provider Nashua Mobile for about R3 billion ($253 million) late last year, saying it was not viable in the face of tough competition from MTN Group and Vodacom.

Reneurt said revenue increased by 7% to R3.9 billion despite a sluggish domestic economy and frequent power cuts imposed by South African power utility Eskom, which is struggling to cope with supply shortages.

Electronics firms in Africa’s most advanced economy have been hard hit by a stumbling economy that depleted their customers ability to spend.

The company said it would pay a first-half dividend of 105 cents, up from 95 cents a year ago.

Reunert’s shares rose 1.2% to R64.30 by 10:28 GMT, while Johannesburg’s All-shareindex fell 0.3%. Reunert’s shares are about 6% up so far this year.

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