The external auditors, KPMG, audited Infraco's annual financial statements and gave the company a clean audit opinion report. The financial statements showed a loss after tax of R28.3 million compared to the profit of R101 million it made the previous year. The operating revenue for the year of R317.5 million was below the total budgeted revenue of R334 million by R16.5 million. This variance was primarily due to budgeted incremental revenue from the South African Research Network and the wholesale market that was not realised during the reporting period. Expenditure increased to R407.1 million. The increase was due to the cost of network operations, maintenance and repairs. Infraco received funding of R208 million from the DPE during the financial year. The Industrial Development Corporation (IDC) contributed funds of R73 million, bringing the total equity to R426 million, to retain its 26% shareholding in the company. Infraco had sufficient equity funding to meet all of its capital and operating expenditure obligations during the reporting period.