Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      South Africa loosens media ownership rules – but keeps one hand on the remote

      16 July 2025

      Eskom targets 32GW green energy shift by 2040

      16 July 2025

      MTN Group appoints new chief enterprise officer

      16 July 2025

      Kruger Park’s white rhinos get a hi-tech lifeline

      16 July 2025

      The real cost of a cashless economy

      16 July 2025
    • World

      Grok 4 arrives with bold claims and fresh controversy

      10 July 2025

      Samsung’s bet on folding phones faces major test

      10 July 2025

      Bitcoin pushes higher into record territory

      10 July 2025

      OpenAI to launch web browser in direct challenge to Google Chrome

      10 July 2025

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025
    • In-depth

      The 1940s visionary who imagined the Information Age

      14 July 2025

      MultiChoice is working on a wholesale overhaul of DStv

      10 July 2025

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025
    • TCS

      TCS+ | Samsung unveils significant new safety feature for Galaxy A-series phones

      16 July 2025

      TCS+ | MVNX on the opportunities in South Africa’s booming MVNO market

      11 July 2025

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025
    • Opinion

      A smarter approach to digital transformation in ICT distribution

      15 July 2025

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Editor's pick » Telkom soars on turnaround hopes

    Telkom soars on turnaround hopes

    By Duncan McLeod13 January 2014
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Sipho Maseko
    Sipho Maseko

    Telkom’s share price touched a fresh 52-week high on Monday as investors continued to pile back into the company on the expectation that it will begin to deliver on a promised turnaround in its fortunes in 2014.

    In intraday trading on Monday, Telkom was trading as high as R34,03/share, up by nearly 6%. The counter has added almost 15% in the past week alone, taking its market capitalisation to R17,6bn, a near doubling from a year ago.

    By way of comparison, rival MTN has added 21% over the past year, while Vodacom is trading just 8,5% higher. However, over three years, MTN and Vodacom have delivered far better returns to investors.

    Since Telkom’s share priced reached its all-time low of R11,93 in 6 May 2013 — a month after former Vodacom group chief operating officer Sipho Maseko took the reins at the partially state-owned telecommunications operator — it has gained a staggering 185%. That means that R10 000 invested in Telkom just eight months ago would now be worth R28 500.

    The share is now approaching levels last seen in 2010, when the company disposed of its stake in Vodacom to the UK’s Vodafone and to Telkom shareholders. Telkom group head of strategy Miriam Altman described the decision, taken by a previous management team, to sell Vodacom as one of the company’s biggest mistakes.

    Telkom has engaged in a number of failed ventures over the past decade, including pumping hundreds of millions of rand into a failed attempt to build a rival to MultiChoice’s DStv and more than R10bn into Multi-Links, a failed Nigerian telecoms business.

    Monday’s share price gains come after a report by Bloomberg, a wire news service, that Maseko had said in an interview that he planned to retrench as many as a thousand managers and reduce Telkom’s staff of 21 000 people by a third within the next five years.

    However, Maseko on Monday appeared to attempt to allay concerns over his earlier remarks, telling Business Day that details of the restructuring, including the number of jobs that would be affected, had not been finalised.

    Top of mind for Maseko is finding a way to reduce ongoing losses at Telkom’s mobile business. The plan to “de-risk” the loss-making Telkom Mobile could lead to a transaction with rival MTN, TechCentral reported in November. The two operators are in sensitive discussions about a possible deal, two separate and well-placed sources said at the time.

    Ironically, MTN considered an acquisition of Telkom in 2007, but backed away. More recently, Telkom entered into a national roaming agreement with MTN, allowing it to use the latter’s infrastructure in areas where it does not have coverage.

    Maseko said in November that whatever deal was reached, it should reduce Telkom Mobile’s “capital appetite”.  — (c) 2014 NewsCentral Media



    DStv Miriam Altman MTN Multi-Links MultiChoice Sipho Maseko Telkom Vodacom Vodafone
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleBreak up and sell SABC, DA says
    Next Article Altech to offload Liquid Telecom stake

    Related Posts

    South Africa loosens media ownership rules – but keeps one hand on the remote

    16 July 2025

    MTN Group appoints new chief enterprise officer

    16 July 2025

    South Africa’s telcos battle to monetise 5G as 4G suffices for most

    15 July 2025
    Company News

    Ransomware in South Africa: the human factor behind the growing crisis

    16 July 2025

    Mental wellness at scale: how Mac fuels October Health’s mission

    15 July 2025

    Banking on LEO: Q-KON transforms financial services connectivity

    14 July 2025
    Opinion

    A smarter approach to digital transformation in ICT distribution

    15 July 2025

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.