Telkom posts 5.3% increase in operating revenue

Telkom posts 5.3% increase in operating revenue

Image: iStock

This comes as it adds 4.5 million new subscribers as the company’s affordable broadband-led proposition draws more customers.

Telecommunications company Telkom on Monday reported a 5.3% increase in operating revenue to R41.8 billion for the year ended March 2019 driven by the mobile business, while headline earnings per share (HEPS) increased 22.6% to 722 cents.

This comes as Telkom added 4.5 million new subscribers as the company’s affordable broadband-led proposition draws more customers. This was a significant growth in mobile service revenue supported by 85.9% growth in active subscribers to 9.7 million.

Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 8.5% to R11.3 billion. The company declared a final ordinary share dividend of 249 cents, taking the annual dividend to 362 cents, an increase of 2.0% year-on-year.

Sipho Maseko, Telkom group chief executive, said they remained focused on operational efficiencies to preserve margins while revenues evolve, and that they were managing the impact of inflation on expenses.

Maseko said the Telkom fixed business remained under pressure, in line with global trends.

“With that in mind, investing in technologies to drive future revenue streams necessitates the evolution of the group’s skill base and acquiring various capabilities,” Maseko said.

“Our human capital investment focuses on creating efficiency and effectiveness in the context of growing the business, achieving operational excellence, retaining key skills, and ensuring our future competitiveness.”

Telom said the dedication and focus on the mast and tower as well as the property portfolio had enabled the business to service clients more effectively and would enhance competitiveness as the largest independent tower company in South Africa.

The group said that its capital investment of R7.7 billion continued to underpin business growth. It said the ongoing investment enabled it to grow new revenue in evolving technology, offsetting the traditional revenue shrinkage.

– African News Agency

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