With revenue having reached record levels and losses narrowing significantly during the year to March 31, State-owned entity Broadband Infraco has turned earnings before interest, taxes, depreciation and amortisation- (Ebitda-) positive for the first time.

This is in line with promises made by CEO Puleng Kwele in 2014 that the embattled telecommunications infrastructure entity would bring its Ebitda into the black within two years.

The operator on Thursday briefed media on the highlights of the company’s results for the 2015/16 financial year, which, according to CFO Ian van Niekerk, would be publicly released pending Parliament’s review of the report within the next week.

The outcomes of the 12 months to March 31, indicate that Infraco, operating under the Department of Telecommunications and Postal Services, is seemingly recovering and improving after years-long periods of widening losses.

Along with a 7% Ebitda margin, Infraco narrowed its losses significantly from R245-million in the year to March 31, 2015, to a loss of R91-million in the year under review.

Gross profit for the year under review reached R192-million, improving some R141-million on the prior year’s R51-million.

The cost of sales for the year also reduced by 18% to R260-million and operating costs were down 6% to R292-million.

The parastatal also posted record revenue of R452-million for the year under review, 24% higher than the R366-million reported in the prior year, owing to additional revenue from key customers, new contracts and the retention of existing customers.

Infraco increased the number of customers to 23 during the year under review, up from one anchor client in 2012 and 18 in 2015.

With the year’s financials now signed off, the company’s focus moving forward will be on driving revenue, optimising costs and securing funding.

The group, which had cash of R141-million at year-end, is not applying for Medium-Term Expenditure Framework funding this year, but is in talks with its shareholders to convert R1.8-billion in shareholder loans into equity to strengthen Infraco’s balance sheet and make it more attractive to potential investors.

Government owns a 74% stake in Infraco, while the Industrial Development Corporation holds the remaining 26%.

Infraco also achieved an unqualified audit for the fourth consecutive year.