Good day, ladies and gentlemen, and welcome to the Remgro results presentation for the six months ended 31 December 2022. All participants will be in listen-only mode. There will be an opportunity to ask questions after the presentation. If you should need assistance during the call, please signal an operator by pressing star then zero. Please note that this call is being recorded. I would now like to hand the conference over to Chief Executive Officer, Jannie Durand. Please go ahead, sir.
Good morning, everybody. Welcome to the result presentation of Remgro for the six months ended 31st of December, 2022. In the room, I've got my management board with me. They will help me answer the questions at the end of the presentation. Neville Williams will do the biggest part of the results presentation when he announce the results. The agenda, the contents, we'll all set the scene. I'll actually evaluate us on how we are delivering on our strategy that we've explained in the past. Neville will deal with the results for the interim period. I'll conclude by just looking ahead of how we see the future unfolding, not that we will always be right in that. Right at the end, we will give the audience the opportunity to raise questions, and we will be able to answer some of those questions.
If you look at these graphs, normally when you see graphs going up, it's actually positive news, in these instances, they're mostly not positive news on the global side. I mean, we're looking at across the world, inflation, interest rates, uncertainty, except for the one on the GDP growth. It's all signs of a very constrained environment in 2022, and that's the backdrop to our results. Economic prospects were lowered at the beginning of 2022 with the Omicron virus. We've got the lockdowns still in China, the crash in the property market in China. Couple that with in Russia, the Ukraine war there and the impact on that on inflation, the global supply shocks, and also the energy crisis. Europe actually handled it much better than everybody anticipated.
Luckily, it was also of a mild winter that actually coincided with that, so that actually helped in that respect. The IMF revised its growth forecast for 2022 and further also going forward. Inflation, big problem. It is a peak level in the U.S. at 9.1% in June. The U.K. was 11.1% in October. That is for both countries, the 41% is a 41-year high. In the Euro area was at 9.9% in September. I think yesterday the new latest U.K. numbers came out at 10.1%, so they back into double digit inflation. Reduced demand from China because of the lockdown, also heightened concerns over global growth factors going forward into equity markets in quarter three. The central bank, the hiking cycle continued throughout 2022.
Monetary and fiscal policy looks to remain tight through 2023. As you probably saw yesterday, the Fed raised its interest rate by another 25 basis points. This uncertainty and volatility dominate the sentiment across global markets during 2022. We are of the opinion that interest rates will remain high for longer than we anticipate going forward. The Fed is really between a rock and a hard place at the moment. Do they curb inflation, or do they actually curb inflation with higher interest rate, or do they keep in interest rate at the current levels to actually helping the banking crisis? I'm not sure exactly what's going to happen.
All I think that we think from our point of view is that these interest rates will remain higher for longer than we think. If we move on to the domestic side, I mean, similar picture on the graphs. They're all going up, but it's up, it's not a positive sign on the interest rate cycle. Commodities, energy availability, that's one thing that come into play in the domestic environment. Then food inflation, which is a real concern, not just for us, but I think for the country as a whole. Also that coupled with the food security issues that we might get into the future if things remain the same. On the interest rating side, clearly the higher interest rate had a positive impact on the cash at the center, but also had a negative impact for us on our valuations.
The high cost of debt and the higher risk-free rates equating to a higher discount rate overall had a negative impact on our high net accretion. Neville will explain that in more detail later on. Commodities, you're all aware of the impact of high commodity prices in the food business. We have taken some significant price increases across our business, but these were not able enough to actually offset the margin pressure, and we couldn't fully recover the input cost. There was also a negative impact on TotalEnergies. Neville will explain it in detail because of the stock revaluation and the drop in the oil price of the negative mark-to-market on the stock valuations regarding in TotalEnergies. Price of Africa started to come down, but not yet at acceptable levels from a margin point of view.
I mean, May still trades above ZAR 4,000. you know, May, I mean, this is still high. If you look at from history, it's very high. Food inflation, continued cost pressures as we know. Margin compression, we see that across the board even in our competitors. February saw an increase in CPI. That is the effect of the added cost of power. We'll talk a little bit about power later in the presentation. We couldn't recover all of that through pricing. Energy availability remains a concern. Some of our companies are affected differently by load shedding. Some of them are in zones where they don't have load shedding. Unfortunately, some of them are in areas where there are load shedding.
We've established a collaboration network in the group that we try to mitigate some of these things. Now we can limit the impact on our companies to a large extent, but unfortunately, sometimes you can just do so much. One of the things that is becoming more of a concern for us is now with generators running at long, much longer hours than they used to or what they're actually designed for. We're getting some generator breakdowns. Couple that with diesel storage at the site, that becomes also a problem, to actually be able to store diesel at your sites, at hospitals, at factories and things like that. That also becomes a concern.
If you looked at it, other factors that are contributing to the unfavorable macroeconomic environment in South Africa and also really affecting the investment case for South Africa from an international point of view, is the Transnet, the rail infrastructure issue, the inefficient rail and port operations, and the cost to the economy in terms of export revenue. I mean, the supply chain is blocked. You see what's happening in the Cape Town Harbor, also at Richards Bay. I mean, the delays in exporting things and a large amount of fresh fruit actually that is wasted and needs to be dumped. I mean, we've been grey-listed the impact of that has happened. Clearly the effects of crime and corruption.
Not just at the Eskom level, but we see it across other industries as well, in the mining industry, the construction industry, and the logistic industry as well. The overburdened criminal justice system, NPA overburdened, not being able to actually swiftly and efficiently acting on some of the arrests that have been made. It was a tough six months, we don't really see things improving very rapidly in the next year or so, I'll deal with that when I come to the outlook. Moving across to the results. If we look at our results, we think our earnings momentum is maintained despite a lot of these headwinds that I've explained. Headline earnings per share is up by 5.7% to ZAR 6.26. It's not really comparable to the prior year.
The reason for that is because of the corporate actions that has happened. For instance, the Discovery Equity accounting earnings by RMI, plus MMH equity accounting earnings by RMI, and OUTsurance as a sale of Hastings. The sale of Grindrod Shipping, this, and also the unbundling of Grindrod Limited had an effect that we can't really compare the current year's performance or the current six months performance with the prior six months performance, but Mabel will explain that a little bit more in detail later in this presentation. We've increased the dividend by 60%, from ZAR 0.50 to ZAR 0.80.
As we said last year, the cash flow is lagging the earnings increase because of the dividends actually declared on the prior year earnings. The cash flow is now starting to catch up with the earnings and that lag. The INAV is up by 5% to ZAR 223, from ZAR 213. I've explained earlier of the, you know, huge impact of why it's not higher is because of the increase in the VAT rate. The closing share price at the end of December was ZAR 133, which was up 2.4%. The INAV discount is up now over 40.6%.
The increase in the earnings was mainly due to higher contribution from OUTsurance, KTH, CIVH, which is now turning profitable, and FirstRand as well as higher interest income. This partly offset by lower contributions from TotalEnergies, RCL Foods, as I've explained to some of the corporate actions like Grindrod's unbundling and so forth. If we get to our on our strategy, delivering on our strategy. Just to recap what our strategic priority is to unlock value, efficient capital allocation, and to go on a sustainability drive. On the Mediclinic side, if you look on the turnaround there, it's a continuing journey. We're not there where we want to be. It's part of our corporate actions going forward.
I can just say that we also, on the Mediclinic side, there is certain structural issues that are actually plaguing us in Switzerland at this moment. There's a nursing shortage. The demand is there for our service, but sometimes we can't just do the supply side because of the nursing shortage. CIVH is also turning profitable. This continues to be a focus area for us, and we see pockets of growth there. Cash generation remains key for us to pay in dividends. We are not yet back to pre-COVID dividend levels, but this is a function of the lag between earnings and cash at the center, I've explained earlier. The recovery may also be slower than is anticipated due to the macro pressures, as I've also alluded to earlier in my presentation.
We are also constantly reviewing how we can potentially supplement the dividend stream through other means like share buybacks and so forth. That's something that we'll be continuously evaluating going forward. Great strides have been made in reshaping the portfolio. We are confident that we will be in a position to see the efforts of the corporate actions in the coming financial year. We continue to look at our assets in the three buckets. When appropriate, we will look to dispose of some of the non-core assets, deploy the capital into our growth areas, and maintain our cash-generating assets as feeders of our dividend payout capacity and capital for growth.
Once we have bedded down the ongoing corporate action and portfolio reshaping, we will be better placed to share with the market some of our thinking and plans around how we effectively deploy capital across the buckets and how we look at our balance sheet capacity. As well as with factors that we will believe will contribute positively towards narrowing the current discount, things like share backs, et cetera, that we will be looking at. On the sustainability drive, ESG and sustainability remains a key focus, and we have made considerable progress in this period in embedding this into our strategy. We are committed to enhancing our sustainability strategy and approach to ESG, including through the development and application of consistency across the group as a whole.
On the stakeholder engagement side, we're acutely aware that it's becoming much more important as our portfolio reshaping taking place towards a more unlisted balance. We have taken steps in ongoing improving our disclosure and market engagement. This is for us, aimed at achieving greater alignment with the market, especially relating to our unlisted investments. We have made a commitment to the market that our disclosure in our unlisted investments, as far as possible, will be as good, if not better than even if they were in a listed space, for our investor base to be able to do their valuation, understand our unlisted assets perfectly. Next slide. If we're taking stock, and we've given ourselves some marks, and where we didn't give ourselves some marks, we actually is in progress.
What we communicated to the market, what we said we will be doing, we think we are on a journey to get there. As you're all aware, we have made good progress in the past six months as can be seen with a number of corporate action executed on. I mean, we've sold Grindrod Shipping, unbundled Grindrod Limited. On the FirstRand side, we've been through some corporate actions and some financial engineering around that, and I'll explain that a little bit later as well. We've unbundled the RMI group, and now we've got a direct stake in the OUTsurance Group and direct stake into Discovery, as well as MMH. Under the Distell and the Heineken sides, that deal has now really been approved, concluded.
There is still certain CPs outstanding, like the election of shareholders if they want to elect cash or shares, but we're confident that that will be resolved. There's the ongoing process of Mediclinic, the privatization of Mediclinic, as well as the Vodacom CIVH merger on their fiber assets. The execution speed, unfortunately, is hampered by delays in obtaining regulatory approvals, in particular from the South African authorities. It seems like all the other countries are way ahead of this from the South African perspective, and the one always lagging is the South African regulatory authorities. Our experience suggests there's an increased focus on promoting public interest to address some of our socioeconomical challenges.
Whilst we believe in the necessity of addressing these, we do believe there has to be a balance of creating a level of unpredictability and uncertainty that can negatively impact the SA investment case. Takes a lot of our time to explain to some of our international partners of why are these things necessary in South Africa and what it means for them. They don't sometimes understand a lot of these things, it actually it's put a lot of friction into the system. We are ever continuing to engage with the regulators with a spirit of commitment to seeing the successful implementation of these transactions, despite of some of these challenges that we face. On the next slide, just to briefly talk a little bit about the energy platform that we are creating.
This is really, I think, one of those things that we think is a must-do from our side as well. We've established a company called Ubiquity, that's been formed, currently consisting of Energy Exchange and Enerweb. RMB has actually joined Remgro as a 25% shareholder and a shared strategic partner in Ubiquity. Energy Exchange, just briefly on that, they've got their NERSA trading license. The first power generation of their PPAs have been signed, with energy expected to trade by June 2023. There's a current pipeline of more than 100 MW of supply under marketing process, which is expected to double during 2024. Energy Exchange is involved in market initiatives, such as the Cape Town wheeling project. They're also dealing with other municipalities in other areas as well, and also having a good relations with Eskom on the wheeling side.
Enerweb, its H1 performance is tracking forecast. Enerweb is actually a provider of software tools for operators of power grids and trading platforms. The partnership with RMB, they bring different kind of skills and a network of prospective independent power producers. That also brings value on risk management, financing, and structuring capabilities to accelerate the enablement of this platform. They also have a large corporate client base that may benefit from the Energy Exchange product offering. We're also confident there's a lot of potential synergies between Energy Exchange and Enerweb, and we've got the skill set to provide a unique offering to our customers, differentiating Energy Exchange from other traders. Complementary skill sets and capabilities between Enerweb and Energy Exchange will provide the ingredients for a differentiated strategy from the market. Energy Exchange, as you is a small business at the moment.
It's an early-stage business. We're taking a capital-light approach to it. Think, it's a business that can play a very important role in developing the private power space in South Africa. Just taking stock and allocating capital in line with the strategic priorities that we've done in the last six months. Just on the FirstRand hedges, during COVID, as you're all aware, we took out some hedges over our FirstRand stake, and during July 2022, we sold 19.2 FirstRand shares for ZAR 959 million at a price that's just below ZAR 50 a share. These were part of the 60 million FirstRand share with hedges through a series of options which became exercisable during June and July. The other 40.8 million FirstRand shares were also sold during June 2022.
During November 2022, Remgro entered into another hedging transaction for 30 million FirstRand share. The reference price was ZAR 67.37, it's a two-year term, it provide protection for us at 95% at a price of ZAR 64, with a call strike at ZAR 77.96, which is about 115%. Importantly enough, we've also contracted for the dividends, we will have the dividends in there, as well as we will be allowed to vote these shares at the FirstRand annual general meeting by actually, although we did a scrip lending exercise. The narrow zero cost collar was valued at an asset of ZAR 118 million on the 31st of December 2022.
After our interim period during March 2023, we've entered into a further hedging transaction on another 30 million FirstRand shares on the similar terms as the previous one. The reference price in this instance was ZAR 67.02, providing protection at 95%, that's ZAR 63.67, and there's a call strike at 114% of ZAR 76.40. The level for the pre-contracted dividends would increase from those set during November 2022. On the Asia Partners side, on the Asia Partners side, we've invested a further $1 million into Asia Partners, thereby increasing our cumulative investment to $20 million in Fund I. We've also made an initial investment of $8 million into Fund II, which Remgro committed to invest up to a maximum of $15 million.
With 10% We are limited 10% of the total fund size, which that 10% stood at $37 million as of the 31st of December 2022. As at this 31st December 2022, the fair values of these Remgro's investments in these funds, in two, Fund I and II, amounted to $28 million and $8 million, respectively. The remaining commitments are $5 million and $29 million, respectively. On the Milestone China Funds, at the 31st of December, our total investment in Fund III is amounted to $101 million. During the year, on the review, we received distributions of $4 million from Milestone III, thereby increasing our cumulative distributions to $93 million.
As at the year end or at the six months end of the 31st of December 2022, the fair value in this fund amounted to $44 million. We also sold our investment in MCIH for a price of $7.3 million, which equates our investment, initial investment into the company. On the PRIF side, during the year under review, Remgro invested a further ZAR 38 million into PRIF and received distributions of ZAR 6 million, thereby increasing our cumulative investment to ZAR 615 million. We've received also distributions of ZAR 353 million in this fund. As at the end of December, the fair value of our investment in PRIF amounted to ZAR 760 million, and our remaining commitments amounts to ZAR 41 million.
The performance of PRIF have actually started to do quite well as they're realizing investments and selling investments, so they're actually performing very well at this point in time. That's finished my introduction. I'm going to hand over to Neville now for the results for the interim period.
Thank you, Jannie, good morning, everyone. This slide just present a graphic representation of how we have progressed since the onset of COVID in that second half of the financial year ended June 2020. From December 2020 till December 2021, we were on a recovery path. If you look at the six months to December 2021, we actually surpassed the pre-COVID levels. Since then, if you look at the year, the current period of ZAR 3.5 billion headline earnings, that represents a 5.5% increase on an headline earnings per share. It's 5.7%.
The difference is the positive impact of the shares that we repurchased during the interim period to hedge our commitment on the share scheme. Full recovery since 31st December 2021. That 5.5% is actually a muted increase. As Jannie alluded to, the results of this period are not directly comparable to the prior period due to the impact of the various corporate actions. If you exclude that impact of the corporate actions in this year and the prior year's earnings, the rest of the portfolio actually increased by approximately 30%. If you look at the next slide, just to put the results in context, on the right-hand side, you see the impact of the corporate actions.
The Grindrod Shipping that was disposed of in January 2022. We only equity accounted earnings for the six months to December 2021. No earnings in this period. We've unbundled Grindrod in September, October 2022. Only three months earnings was equity accounted in this period, while the full six months was accounted for in the previous financial period. On an OUTsurance RMI level, the OUTsurance unbundled Discovery and Momentum Metropolitan. These shares are now part of the Remgro portfolio, and they've also sold Hastings. The equity accounted earnings from these three investments last year amounted to ZAR 351 million on a Remgro level. In this period, we've only received and accounted for dividends from Momentum Metropolitan.
As you all know, Discovery has suspended their interim dividend. The total net impact over the two years is a negative of ZAR 636 million. If you exclude that ZAR 636 million, the rest of the portfolio actually did very well. These the major contributors to the increase of approximately 30%, excluding the impact of corporate actions. OUTsurance Group increased by more than 100%. That's the main contributor to the increase of ZAR 242 million. Finance income, last year, the repo rate increased by 325 basis points, and that have had a positive effect on Remgro 's interest income, increased by ZAR 260 million from period to period.
CIVH continued improved performances by DFA and Vumatel, and they also turned positive on a CIVH level. Their headline earnings contribution increased by ZAR 207 million, which is more than 100% increase. FirstRand, we account now for dividend income. Included in that increase of ZAR 185 million is the special dividend that FirstRand declared last year. Our portion was ZAR 154 million. The earnings contributions from KTH and TotalEnergies actually created volatility in our equity accounted headline earnings. In that increase of ZAR 303 is at a KTH level, a once-off gain of ZAR 521. On a Remgro level, it's ZAR 227 relating to the Actom exit process.
It's after the sale of Actom, and the partial repayment of the debt, the outstanding debt was actually forgiven, and that's the gain. It's a once-off gain. At TotalEnergies, the crude oil price actually dropped from June 2022 to December by more than 20%. I think it's around 25%. That had a negative effect on the stock revaluations. The swing was around ZAR 404 million negative from period to period. That's created volatility. If you look at the portfolio, at the rest of the portfolio, excluding the corporate actions, these are the main drivers of the increase in headline earnings. This is just the internal segmental reporting dashboard that we present to the board.
It's like a one-page commentary on the movements from the significant investments from period to period. Detailed commentary is included in the board agenda when we present this to the board. I'll unpack the individual investments and the increases or decreases contributions to headline earnings in the next slides. The next one is the INAV also. This is also an internal segmental INAV dashboard. The intrinsic net asset value, as Jannie said, increased by 5%, while the share price increased by 2.44% from June to December. The discount has widened to 40.6%. Just quickly on the makeup of this INAV. The listed investments are disclosed at market value or at the closing share prices at 31st December.
The unlisted are disclosed at directors' valuation. I think the unlisted investment governance process is now very set. If you look quickly at the process of the corporate finance team, calculate the internal individual valuations of the unlisted investments. They present that to the valuation committee of Remgro Valuation Committee interrogate the assumptions, and consider that for recommendation to the Audit and Risk Committee. The Audit and Risk Committee consider that and recommend that to the board for final approval. The June valuations are audited by PwC. December valuations are not audited, we are very consistent in methodology from period to period. That's important.
Where we deviate from any methodologies from period to period, we disclose that and explain that to the VC, Audit and Risk, as well as the board. If you look at the WACC, the risk-free rate in the WACC calculation, we use. It's based on the annualized R213. That rate has actually decreased by approximately 28 basis points from June to December. The big impact is the increase in interest rates. The JIBAR in that six months period has increased by 225 basis points. That had a negative effect on the valuations from June to December. What we'll also show later in the presentation, an updated INAV, based on listed prices on the 20th of March 2023.
For the unlisted, because of volatilities in the geopolitical and economic space globally and in South Africa, we have applied a downward adjustment of 5% to the unlisted investments cash flow forecast that was used as a basis for the DCF evaluation to December. I'll explain that later when we present the updated INAV. If you look at the top five investments, actually contribute just under 63% to our portfolio. Within the top 10, up to TotalEnergies, contribute approximately 83% of the portfolio, the INAV of Remgro. This is just the split contribution in headline earnings, as well as INAV per platform. The segments of Remgro are the significant investment investee companies.
We then organize that into platforms. You'll see the major platforms are the healthcare. That's your Mediclinic investment. The consumer products consist of the Distell, RCL, and Siqalo. Financial services will be OUTsurance and Business Partners. You also see the portfolio investments. Their contribution to INAV and headline earnings is also significant. These portfolio investments now consist of our interest in FirstRand, Discovery, Momentum Metropolitan, as well as Patria-related. Moving on to the individual investments. The healthcare headline earnings contribution increased by 27%.
If you look at their adjusted earnings, because they disclose adjusted earnings to assess the actual financial and operational performance, as well as a method to provide investments a better understanding of their financial performance. That actually decreased by 15%. If you look at the adjusted EBITDA, decreased by 1%. The EBITDA margin is also a bit under pressure, from 15.8 to 14.2. If you look at the next slide, this is a slide that Mediclinic actually present to the investment community. The segmental adjusted EBITDA and the contributions of the Middle East, South Africa, as well as Switzerland to their adjusted EBITDA.
You'll see that the Middle East adjusted EBITDA margin actually decreased to 11.4 because of investment for growth in new existing facilities, more staff costs, as well as pronounced seasonality. If you look at Switzerland, South Africa actually is stable from period to period. Switzerland's EBITDA declined by 12% and mostly because of revenue decline and COVID-19 staff absenteeism, as well as nurse shortages that Jannie has alluded to. If you look at the consumer products platform, as I said, consisting of Distell, RCL Foods and Siqalo. Distell and RCL Foods are listed, Siqalo unlisted. Their contribution to headline earnings 28%, and to INAV just under 22%. Moving on to the individual investments, Distell has announced their results.
This is just a snapshot of their results. Double-digit revenue growth of 15.9% on the back of a 10.3% increase in sales volumes, mostly driven by ciders and RTDs. I think Savannah is the big brand there. Then the double-digit growth relates actually to a moderate profitability gains because of the significant input cost increase. That's was largely driven by imported glass as well as apple juice concentrate, increasing costs there. Electricity disruption also created higher costs, as well as stock building in the business. There's just the more detail on the contribution per region. South Africa dominates on a revenue and volume level, and then the contribution per category where ciders actually dominate from a volume perspective.
On RCL Foods, they also announced their results. This is a snapshot. Revenue actually increased by more than 17%. If you look at the significant increase in the cost structure, the underlying EBITDA decreased by 9.2%. Mostly because of, the overall performance was mainly impacted by lower contributions from Rainbow, the chicken business, and the baking business unit. Rainbow's turnaround was hampered by this high commodity input cost, poor agricultural performance, as well as the impact of load shedding, which actually significantly affected their operations. The baking business experienced slowdown in demand, plus the implementation of price increases to counter higher wheat prices. Their commodity prices and cost structure also increased significantly. There's your segmental revenue contribution.
If you look at the major contributor to revenue is actually your chicken business, but a negative contribution to operating profit because of all the issues in Rainbow currently. If you look at Siqalo Foods, the unlisted investment, revenue increased by 12%, while the operating EBITDA actually decreased by 2%. That just show the challenging trading environment that Siqalo experienced over the past six months. Continued cost pressure, 21% increase in the material cost. On the cost side, they actually applied a further 4.5% increase in October. The full impact of that cost increase in cost prices, they were unable to pass on to the already cash-strapped consumer.
The consumer is struggling at the moment. You can see that in the 2.1% volume decrease because of the consumer spend that's been negatively impacted by rising inflation and interest rates. If you look at the valuation drivers, the Siqalo's valuation increased by 4.7% to ZAR 6.6 billion. The main drivers of that increase was the decrease in the WACC rate that had a positive effect on the valuation. In the forecast, the five-year cash flow forecast, they actually forecast single-digit revenue growth.
It's less than 5%, especially from a volume and price perspective, and also forecast margin recovery in gross profit and EBITDA over the forecast period, actually normalized to sort of pre-COVID levels. Financial services consist of OUTsurance, there you'll see we've split the OUTsurance Group into continuing and discontinued. The continuing operations consist of OUTsurance Holdings and then at group level there's certain like AlphaCode, certain other investments there. Actually OUTsurance Holdings Limited contribute a major portion now of OUTsurance Group. Their continuing headline earnings increased by 147.6%. On a normalized basis, they announced the results yesterday. The headline earnings increased by 78% due to a 45% increase in the earnings of OUTsurance Holdings Limited, the insurance business.
The reason for that increase is a significant improvement in the earnings of Youi, the Australian subsidiary, from period to period as well as lower funding costs at group level because they've utilized the proceeds of the Hastings disposal to actually settle their debt at group level. Business Partners, also significant increase of 46% due to the increase in interest income, as well as they've now starting to release credit impairments that they provided for during the COVID period. As well as the positive impact of cost containment measures are also now filtered through their earnings. If you look at the valuation of Business Partners increased by just under 2%. In this instance, we use their net asset value.
Of course, 95% or more than 95% of their assets are fair valued in their balance sheet. We apply a tradability discount due to the no liquidity in the share. Infrastructure, the main investment here is CIVH. If you look at CIVH, their earnings, their revenue top line increased by 14%, operating earnings by 69, and the headline earnings that we account actually increased, turned from a loss to a profit. There you'll see the impact of operational and financial gearing and the scaling of the business. The improved performance of the fiber business is due to the continued network expansion over the last few years.
If you look at the intrinsic value, decrease of 1.6% since 30th of June. The main drivers is the increase in the WACC rate by 28 basis points because of the increase in cost of debt. The DCF valuation methodology is based on the combined fiber business 10-year forecast signed off by the CIVH board. If you look quickly in the revenue growth forecast, that is mostly driven by the increase in FTTH uptake and fiber to the business expansion. EBITDA growth forecast is a function of the increase in revenue and the scaling of the business. The CapEx assumption in that 10-year period is mostly on the fiber to the home rollout.
We also apply a tradability as well as a forecast risk-discount to that DCF valuation. The next slides are the results, top line results of Vumatel and DFA. Vumatel, you'll see 14.2% increase in revenue, 16% in operating earnings and 47% in headline earnings. If you look at DFA, 10.5 in revenue, but their operating earnings and headline earnings actually more than doubled period to period. This is just the positive growth momentum that you now see in operating earnings and headline earnings going forward. This is just a slight uncertain of the key indicators regarding the fiber infrastructure platform. I'm not going to delve in detail into this.
Under industrial, this is our industrial portfolio. Air Products, TotalEnergies, and Wispeco are the three main invested companies there. You'll see on the left-hand side the evolution of the headline earnings over the three interim periods. The blue line is actually the headline earnings accounted for from TotalEnergies, and there you'll see the volatility of the stock revaluations, positive and for this period negative. If you exclude that, you'll see the headline earnings excluding the stock revaluations, and that's the dotted line. If you look at the 170 to 129, there is a reason for that, and I'll explain that. Just quickly on the INAV valuation drivers, Air Products, the WACC increased by 11 basis points due to the increase in the cost of debt.
The increase in value is actually driven by continued stable revenue growth. There's a bit of cost pressure in the operations, and that resulted in a margin squeeze in the forecast period. The on-site business is the major contributor to revenue and EBIT, and it operates mainly on long-term, fixed-term contracts, with a solid cash and revenue path. TotalEnergies, their WACC, the valuation increased by 2.4%. Main reason is the decrease in the WACC by 21 basis points, which had a positive effect on the valuation. At the moment, current volumes are under pressure due to fuel prices still at elevated levels.
Wispeco, a slight decrease in the valuation because of an increase in the WACC rate. In the forecast, very conservative, low single-digit revenue growth forecast due to a subdued market demand for aluminum extrusion at the moment. On the next slide, more detail on the top line, the revenue and operating performance of the different unlisted industrial companies. Just quickly on Air Products, very positive improvement in revenue as well as operating performance. The demand for cylinders and other packaged gases was relatively strong, but they also now start to feel the cost pressures in the system.
TotalEnergies, if you exclude the negative stock effects, their earnings decreased by 24%, this decrease is mainly due to higher input costs, heavily impacted by supply challenges experienced in the importation of fuel products. The Ukraine/Russian War still have an impact on the availability of crude and finished products. That was partly offset by higher margins from Natref. Wispeco also very positive. Double digit increases in revenue as well as operating profit. Diversified investment vehicles consist of KTH and then the funds, of which Prescient China Equity Fund is the most significant, and then the Invenfin portfolio.
You look at KTH, there you'll see the headline earnings contribution, and I've discussed that, the once-off debt forgiveness gain of ZAR 521 actually resulted in the 673% increase. KTH's INAV increased by 5.7 or the valuation, and the drivers are Kagiso Media, Momentum Metropolitan, and Servest. These three investments contribute 93% of their INAV. Just quickly, other investments, treasury and corporate costs. eMedia has already announced the results, a decrease of around 10%. VST Portfolio Investments, the evaluation actually decreased by 4.2, and they consist of FirstRand, Discovery, and Momentum. The other social impact, central treasury and other net corporate costs make up the total intrinsic value of ZAR 23.6 billion.
Just update on the intrinsic net asset value. So since December, the INAV increased by 4.5%, mostly driven by 8% increase in the listed portfolio. Also, as I said, we've applied a 5% haircut for a downward adjustment to the unlisteds. So if you look at the discount, increase to 44.5%. The debt and cash at the center. Cash increased by ZAR 1.7 billion to just under ZAR 14 billion at the 1st December. We have debt of ZAR 7.9 billion, so the net cash is approximately ZAR 6 billion at the center. You can remember that we have a commitment to increase our stake in Mediclinic to 50% at 5.4. It's a GBP 200 million commitment.
We have sufficient cash to finance that. This is a cash flow bridge. The big driver of the increase in the cash movement is the dividends that we received, ZAR 1.7 billion, and we've also sold 19.2 million FirstRand shares. This is just the movement in the cash dividends over the periods since COVID. The COVID period of ZAR 720 million, that's the low base, and from that low base, we've recovered now to or we're approaching full recovery with that ZAR 1.7 billion. This is just detailed slides, slide of the individual investments contribution to dividends.
Then, as Jannie said, the board, looking at the recovery in cash and dividends received, has declared a ZAR 0.80 interim dividend, and that represents a 60% increase from the previous year. That's still from a low base. The 60% increase in interim. Jannie, that's my part of the presentation.
Thank you, Neville. This is the outlook. I think it's quite an appropriate headline, another noisy outlook with threats and opportunities. I just want to touch on the global macroeconomic of how we see that posing a threat going forward. We're all aware of the potential for a recession in Europe, the U.S., and the U.K.. This obviously might also impact South Africa, especially on the terms of trade and the export opportunities into the rest of the world.
We're still aware of the supply chain challenges that we've got with the geopolitical tensions that are happening in Europe. Concern to us as a company is also South Africa's quite close alignment with Russia in certain of these areas, that if you think about it, our terms of trade with the rest of the world, with Russia, there are multiples of our trade with Russia. That might have an impact on some of our trading partners if they actually look at us unfavorably regarding that. I don't want to beat on this too largely, load shedding, as you all know, is a constant overhang. The cost of diesel. I've talked about storage. I think there is some green shoots coming out.
If you look at all the projects in the pipeline, mainly driven by the private sector, that I'm quite confident in 24 months that we will see a significant amount of green energy and other forms of energy coming online to alleviate the pressures on the Eskom generation capabilities. There is certain progress on structural reforms. Clearly, the main concerns regarding that is execution capability of government. I think the second one is the crime and corruption, which is a big worrying thing for all of us. The amount of money getting lost into the system via corruption, we just know the numbers that was given at Eskom, if you actually extend that into other areas like the construction industry, the logistic industry, as well as mining, I think the numbers gets quite significantly and actually quite frightening. What needs to be done?
We, as Business for South Africa, we're quite aware of this. We're actually working together with business, as quite a few CEOs of us, and we actually have identified three work streams. The one really relates to energy, which is self-explanatory of why that's important. The other one is on the logistics side, come together with food security, to actually be able to move your things around in the country. The third one, which is crime and corruption. A big part of that is strengthening the NPA. There's various initiatives that the business is trying to help. Obviously, very peculiar about the independence of the NPA, but strengthening the NPA to be able to actually execute on a lot of these cases coming before them. We all know the pressure on the consumer continues to intensify.
I mean, interest rates are high, borrowings are high. The consumer is struggling out there. We can see it every day. You can see it coming through in the results of the companies and some of the predictions that some of the CEOs are making. The grey listing is a setback. We're all aware of that. Infrastructure-led growth. As I said, that is very, very critical. I think what we can see is some green shoots coming through in terms of the privatization of the ports. We as Remgro is also throw our hat into the ring on some of that. There is a privatization also potentially of the rail corridor between Gauteng and Durban. Unfortunately, some of the conditions that government actually put onto these things is quite restrictive.
It not makes it attractive for private investors in terms of the government wants to keep control of some of these operations and things that will re-limit efficient and effective deployment of capital and adequate returns for private for private investors. There will be some. There is some restrictive things in terms of the RFIPs that are, that is concerning. We're steaming ahead, and we're trying to make these things work, and we're engaging with government, and hopefully we can get some positive feedback from there. Try and just change some of these things. There's some encouraging things on the fiscal side. I mean, we all know about the Eskom debt relief program. We've actually got a budget primary surplus. That's now officially for interest costs and so forth. The infrastructure spending will exceed over ZAR 900 billion.
Unfortunately, as we can see in the quarter four for the GDP, we had negative GDP growth again, so that all sometimes makes us much more realistic of what is happening. Yesterday also, the IMF revised our forecast growth downwards, really they cite the power shortage as a key driver for that. I still think South African business, and I'm not just talking about Remgro and its group companies, has shown remarkable resilience in the last decade. The undisputed need for business is to be united, to be a working into a force of positive change, working together, closer together with government. I think we need to bridge the trust deficit with government. They view us sometimes with some skepticism. They don't always trust our intentions. We've probably got the same vice versa. That big divide needs to be bridged.
We as business are committed to do that. We have a group of CEOs that actually want to move forward with this and to make sure the country works. We think you can't do it without the private sector. I mean, we're all aware. We always say governments don't create jobs, private sector create jobs, and especially the SMEs, smaller companies, that do create jobs. Big business sometimes shed jobs. If we can encourage the private sector, especially with growth opportunities for small and medium enterprises, that will be very encouraging. Business working with initiatives, and we're committed to that as Business South Africa. We move on to my last slide. You've seen this in the past, our focus is doubling on our efforts to deliver our strategic priorities.
We talk about disciplined capital allocation, portfolio optimization, sustaining the momentum of our companies through the portfolio through these difficult times. We will continue with our sustainability drive, unlocking value through the disposal of non-core assets and new growth opportunities, and improved disclosure and shareholder engagement, which will become critical for us into the new reshaped portfolio that Remgro will consist of going forward. I think from our perspective, what we want to do over the next six months, hopefully by, if we come to you at, with our year-end results, we will have bedded down 80 or 90% of these corporate transactions that we're actually busy with and under. Which is under work in progress. Hopefully, we will report positively on that. Once we've done that, we can actually look at some of these other value unlock drivers.
Not that we're not thinking about at the moment, but it will become easier to talk about our portfolio investment, share buyback programs, and also developing what I call an investment scorecard that we can share with the investment community of where we're marking ourselves, if we've actually delivered on our promises, where we did not deliver on our promises and the reasons for that, and also where we've made mistakes. We will try and deliver that and actually communicate that with the investment community on a biannual basis. That is our commitment as the Remgro management team. I think that comes to the end of my presentation and Neville's presentation, we can hand over now for questions and answers.
Thank you. Ladies and gentlemen, on the conference call, if anyone would like to ask a question, you're welcome to press star and then one on your touch-tone phone or on the keypad on your screen. If, however, you wish to withdraw the question, you may press star and then two. For those on the webcast, you may submit your question via the text box at the bottom of your screen. Once again, for those on the conference, if you would like to ask a question, you're welcome to press star and then one. We will pause a moment to see if we have any questions from the conference call.
There are.
It seems we have no questions on the conference call. I would like to hand over to webcast questions.
On the webcast, we've got a few questions. There's one on KTH. Can you please clarify the gain arising on lender waiving right to the repayments?
The investment in Actom on the KTH sits in an SPV. Over the past few years, because of the underperformance of Actom, significant impairment provisions have been accounted for in KTH's results. They've managed to sell the investment, the proceeds was less than the outstanding debt. They partly settled the debt, the lender just wrote off the rest of the debt. That's the reason for the gain through headline earnings because it's an impairment of a loan.
Neville, question from Keith. Why do you believe that shifting the majority of your investment portfolio towards being unlisted will lower the discount of your share price versus your NAV? If you look at African Rainbow Capital, the majority of their NAV is unlisted, yet the market values them at a significant discount to NAV. Why would Remgro be any different?
I think let me answer that one. I don't think we think it will be different. I mean, the market will determine the discount. I think operating in an unlisted space, the reason for that is to really, you actually got much better control of your investments, but your execution on them is much easier to achieve. You're moving closer to the team, you actually got your flexibility, and your speed of execution is a lot quicker on that. It puts more responsibility on us as Remgro, as I've explained, that we actually have to be more transparent. The disclosure must be as good, if not even better as in terms of the listed environment for that to enable the market to actually put a value on those investments.
Thanks, Jannie. Maybe another one for you, then. You talk about helping the NPA in growing its capacity to prosecute corruption cases. Is this assistance in the form of money? If not, how does Remgro envision assisting the NPA?
It's not just Remgro. I think it's a business of African initiatives. There is certain initiatives that is happening there, people has been secondment. Obviously the holy grail there is they must be totally independent, not be seen to be able to first do business. There is also some other initiatives to training. There's some overseas models that is being looked at of how people get trained at universities to be able then to execute certain crimes. I mean, some of these crimes, if you really relate to white-collar crimes, whether it's financial corruption, things like this, it got quite complicated to be able the NPA to execute on these things. It can takes a form, various forms, obviously money, training, secondments. Not just one size bullet fit all sizes or the things that we're looking at.
The question from Steve. With respect to the food company investments, how easy or difficult is it to get inputs from suppliers? Can your food companies supply their customers or an order from customers easily? Assuming this talks to the effects of load shedding.
Can you maybe just read it?
With respect to the food company investments, how easy or difficult is it to get inputs from suppliers, and how easily can you get your orders to customers? Just it's for RCL and Steinhoff.
I think at the moment, supply chains are not ideal, we can still deal with it. I can only speak on behalf of RCL. We're in the fortunate position from a RCL perspective that we actually, we've got quite a vertical integrated supply chain. We've got milling operations, we've got feeding operations. On the chicken side, we produce our own chicken feed. Yes, it is becomes a concern, especially if you import like soy, soya that comes to the harbor ports and there's delays. That can be disruptive. I think at the moment, we actually got adequate supplies to be able to deal with that. In the future, we think if more congested, it can become an issue. Delivering things onto.
To the customers, sometimes, especially if you look at the banking business, trucks leaving early in the morning, trucks, that is a concern on the risk of hijacking, things like that. There is, let's say, call this risk associated with it's always not plain sailing. It's not getting better as we speak. We trying our best and we surviving. At the moment, thank God, we're getting most of the food supply through to the customer. If certain things happen, for instance, I can just say when bird flu gets to about a certain stage, as RCL and Astral's got the same problem, we can't actually process the amount of chickens that the country needs. Then it becomes a food security issue going forward, significantly so.
The next question is on Mediclinic. Can we get an understanding of why the transaction is taking long to complete, and when we can expect for it to be completed? What are some of the roadblocks?
As you know, Competition Tribunal was last week, Wednesday, if I recall correctly, the 15th of March. We both went together between the sales, between the Competition Commission, the DTI, and as the acquirers of Mediclinic, we actually agreed with the principles that was presented at the tribunal. There were certain objections at the tribunal. Hopefully we can complete it in early April. Unfortunately, it should have been quite quicker. There were no competition concerns at all. All the things that we actually were dealing with related to public interest in this matter. Unfortunately, as I've explained earlier in my presentation, we had approvals out of Switzerland, out of the UAE, in Cyprus, which I don't know why we had to get approval out of Cyprus, and that has been already months that we had these approvals.
The only regulatory authority that took so long was the South African side. I mean, if you just think about the frictional cost embedded into the system, just think of Distell, Heineken, how long that has taken. The CIVH Vodacom deal, how long that's taken, and as well as the Mediclinic deal how long it's taken. A lot of frictional costs by getting these transaction delayed.
Yes. There's a question from Tan on the CIVH Vodacom deal. Again, just on timelines and where we are on the approvals.
We submitted, it's Peter speaking. We submitted to the regulatory authorities, which is ICASA and the Competition Commission in November/December 2021. It's been there now 15 months. ICASA has given conditional approval, subject to a few conditions. The Competition Commission, we are hopeful that by month end, they will be in a position to recommend to the Competition Tribunal, which normally takes another few months.
Thanks, Peter. Another question on CIVH. Can you give some detail on the capital intensity of Vumatel and DFA? Which markets you see highest returns on invested capital, and where do you see the largest opportunities on the segment?
Let me start with the last question first. Initially, we focused on the core, what we call core fibre to the home market, which is typically the Sandton of the world. There, we've passed one million homes. Then in the last two years, we've focused on the lower LSM areas, and we call the first areas, now RICH. There, we've now also passed one million homes. I think in the September Vumatel results, we indicated 1.685 million homes passed. I can share with you that we've now together passed two million homes. Capital that we invest takes the six months for the period. There was about ZAR 1 billion free cash that came out of operations, just short of ZAR 1 billion.
Added another ZAR 1 billion debt funding. ZAR 2 billion went into the network during the six months period. We see most of the growth come from the lower LSM areas. Most of our focus is on those, will be on those areas. Vuma Core, and then we have another segment that is the bottom of the pyramid, which we call Vuma Key. We're still in the early days there, but if you look at Vuma Core, we've now passed one million homes, probably another two million homes that we can pass in that segment. Vuma Key, there could be four, five million homes that is potential in the Vuma Key market. Hopefully in the future we can report in those areas. Maybe something on the capital intensity.
The difference between a RICH home passed and a traditional core segment Sandton home passed, especially, in Sandton, homes are, like, 50 m apart. You have to dig 50 m to get to the next home, whereas in the RICH areas, the home frontage is much shorter. That brings down the capital requirements to pass a home. Also we use, in many areas, aerial fiber more and more these days, which also brings down the cost. Joanna, does that answer this?
Yes. Thank you. Yes, sir. Maybe a question for you, Jannie. Can you just talk us through where you see the best opportunities to unlock shareholder value?
I think it comes down really to things that we've discussed. Is clearly inefficient structures as we dealt with in terms of the RMI structure. Clearly, to double down on some of the growth opportunities in our existing investment portfolio like, on the Vumatel, dark fiber side. There's clearly some growth opportunity not just in South Africa, outside there, some other growth opportunities across our portfolio. I mean, you probably saw on the OUTsurance side as well that they've announced that they will expand into Ireland. There must be an opportunity looking at if you look at between the Heineken and our merger with Distell. I mean, in the countries in Africa, East Africa, we operate, we've never had a beer.
Clearly Heineken has been in South Africa, but they will get to 25% more distribution points just in South Africa alone. Clearly there must be huge opportunities having the beer insider on the same platform going into the territories that Newco will be operating in. I think there's a lot of growth opportunities. From a structural point of view, the discount, as we all know, is not determined by it, but it's a big discount. By buying back shares, clearly you're reinvesting in great assets that you know at a 40% discount. Just take, the Newco is ZAR 165 a share. If you buy to reinvest in the share, you're buying that at a discount of 40% in a great growth company similar to CIVH, similarly with Mediclinic.
You're buying all of those companies at a 40% discount. Some of them, we've talked about, and I'm not saying it's a. It's definitely not a silver bullet, but because they only will be available via the Remgro portfolio, I think really it will create an attractive investment opportunity going forward. Hopefully we can show to the market that we can deliver growth, that we can get earnings momentum growth going forward, increasing the dividends, and the market must actually decide if they must narrow the discount or not. If they don't want to narrow the discount, I mean, it's really we must be doing something wrong.
Thanks, Jannie. Another question from Jane. What sort of disclosures can we look at for Distell and Mediclinic post the delistings, are there any restrictions from your core shareholders, i.e. Heineken's seat?
On the Mediclinic side, I think you'll probably see the easier one to answer at this point in time. It will be as good as the listed environment, so we'll disclose it properly. In terms of the Newco Heineken one, that's something that we're still talking through with Heineken of what we can disclose. I think the main concern there is competitive information, but we will try our utmost best to do as adequate disclosure as possible in that area. I must say, Heineken has been very cooperative in that regard.
Jane, I can't say exactly, but I think it's something that is, will be a continuous process with them. Obviously, we will need the input from the investment community as well as things we do not do adequate disclosure, that you tell us if we don't do that we can try and improve on that. We'll also do, we will have capital markets day. Clearly, at those capital markets day, we will have Mediclinic there. We will have the Newco team there to actually explain the results at our capital markets day, as we've done in the past now with, on the CIVH side as well.
Thanks, Jannie. Neville, there's a question from Charles. Remgro doesn't seem to have short-term funding needs. Could you clarify the thinking to exit or hedge the FirstRand shares at this point in time?
Do you want me to answer? I think the portfolio investments are also regarded as firepower on near cash. I think the main reason and strategy why we now are hedging the downside of it's 50% of the FirstRand investment is just to protect the downside. If you looked at all the turmoil in the financial markets currently and going forward. That hedges will be in place for two years and that will more or less coincide with the maturity of the Standard Bank debt.
We will have flexibility in two years' time, and the board have to decide whether we should keep the FirstRand shares under the hedge or sell that for extra liquidity. The board has flexibility regarding the maturity and redemption of our debt in the next year and two years.
A question on CIVH on the conditions ICASA set on the Vodacom deal last year.
From ICASA, it's mostly to do with continuing to be open access wholesale, which is the current business model. You have transparent tariffs in the market that the market can see where we're rolling out. We don't favor, for example, a Vodacom when they become a shareholder. We'll have to publish on a monthly basis our rollout plans. There are the normal commitments that we have to make in terms of BEE sharing. We have to commit that we will have a BEE sharing of above 30%, which we are currently. Normally there will be the retentions for a period, but the main one is open access.
Thanks, Neville. question from Chris Logan on the conference call.
Hello.
Hi, Chris. We can hear you.
Yes. No, thanks very much. Thanks for the detailed presentation. Just, the discount, and Neville pointed out, it is 44.5%. Is that not a historic high or pretty much close to?
Yeah, I think it's probably a historic high. I think you're absolutely right.
No, thanks. Obviously, it's good to hear the discussions, you know, about unlocking value. I was just going through some of my old RMH notes, and dating back to the 2018 AGM, without trying to be nasty, I see at that stage, Jannie, you were against listing our insurance. Because you said it didn't need capital and it didn't need a portfolio. I think it's been a wild success. You know, given some of your underlying holdings, I know you're on a delisting crusade, or take, you know, keeping these things unlisted. Could there be opportunities to list some of the portfolio in the years ahead?
Maybe just to answer you, Chris, on the OUTsurance here, is that that happened by default. We didn't list it. Of course, we actually spun out all the other things. It got a listing by default. Yes, it has been highly successful because, I mean, to be quite frank, Alsier is. I mean, it's an exciting company. It's a highly successful company, a great management team. Yes, that is why we actually say I've never said in the past that 100% of the underlying Remgro portfolio will be unlisted. There is always opportunity to list some of these assets again. I mean, I think it can always be part of the strategy to have a little bit of a listed portfolio.
I just think it's having it was 80% listed, 20% unlisted, was probably not the right balance. I mean, I can't tell you exact number of what should be the right balance. It's just at the moment that we're actually going through a delisting or privatization, and it just happened at a point in cycle. In five years, it could look differently again.
Okay. No, thanks. Just a final question. You know, one of the ways to ensure that the underlyings perform is to make sure the execs have proper skin in the game or alignment. For instance, Berkshire Hathaway, that's one of the two things they keep in-house, designing executive compensation and that. I know we've had a number of discussions at the AGMs where Mr. Rupert and yourself had agreed with things like minimum shareholding requirements. We go look down at RCL, which has been, you know, a long-term underperformer for the group. It was pointed discussion at their last AGM. You know, they seem way behind. They seem living in a different world down there in Durban. They, you know, they still haven't even got minimum shareholding requirements.
Isn't it time maybe to crack the whip a bit harder there or put some more proactive directors on the board? You know, I don't think this is unfair. We are on a historic high discount.
I think, Chris, it's obviously something that we must discuss at the RCL since I don't really want to discuss or what we do at. Clearly, one of the initiatives that we're running is the restructuring of RCL. Actually, talking about moving our chicken and things like that to have a pure FMCG play. Yes, it has been, especially the chicken, has been a disappointment. Some of the things has been outside the control of, on the chicken side. I mean, as we last look at the last six months, what has happened to input costs. I mean, we got stuck into the wrong breed. We're changing that at, on the chicken side. Yes, it has been a disappointing, and that's why we've appointed a new management team there on the chicken side. Completely.
In terms of what you talk about remuneration in terms of the things, I mean, EDA models and things, I totally agree. Maybe disappointment that some of those things probably will be easier to actually implement in a private environment where you can actually move away just from movement of share price and share options things, so you actually can have longer term, less volatility things in terms of your long-term remuneration structure. We're looking at models, part of a collaboration effort across the group of actually trying to develop some of these remuneration models that create long-term value for the shareholders.
Okay. No, thanks a lot.
Thanks, Chris. There's no more questions on the conference call. One last question on the webcast. On eMedia, can you provide some thinking on the impact of the analog switch off on eMedia and how eMedia can address this?
eMedia is in constant communication with the minister of communication on an organized switch off per sender. they working also in the work group with Sentech because that's busy managing that process. it will have a negative effect. with the Openview multi-channel business, they actually now have surpassed the three million activations mark. where there's a sender that's been switched off in that week, few weeks before the switch off date, they actually increase their marketing of the Openview set-top boxes in that area. That's how they actually mitigate the negative impact of the switch off. That's all the questions. thanks, everybody, and thanks for dialing in. have a good day. Thank you very much.
Ladies and gentlemen, that concludes today's event. Thank you for joining us. You may now disconnect your lines.