ACTowers Revenue Leaps in South Africa
Buoyant conditions in the cellphone industry, and forays into the rest of Africa and other emerging markets have continued to pay off for AltX- listed Africa Cellular Towers (ACTowers).
The group said revenue for the year to February climbed 66% to R327m, largely due to increased demand for its products as it expanded into new regions such as Madagascar, Congo (Brazzaville) and Uganda.
ACTowers is active in 18 countries on the continent including Niger, Sierra Leone, Chad, Burkina Faso, Zambia, Uganda, Sudan, Zimbabwe, Botswana and Tanzania. It manufacturers steel communication towers, portal factories, steel fencing, diesel and water tanks, solar structures and it also undertakes general steel engineering.
Headline earnings grew to R45m, up 45% from the previous comparable period, while headline earnings per share rose 10% to 17,7c. The results were also boosted by ACTowers' acquisition last year of cellular tower shelter manufacturer JK Shelters, which added R58,5m to total revenue.
Since listing about two years ago, the group has benefited from Africa's high-growth cellphone market. According to the International Telecommunication Union, the United Nations body that sets worldwide telecommunication standards, Africa is the fastest-growing cell phone market in the world.
ACTowers' strong performance was achieved despite delays in completing contracts in Chad because of fighting in the country and some debtors being slow to make payment.