Telkom has reported a 2% year-on-year improvement in revenue in the third quarter of its financial year, while maintaining its operating margins, despite intense load shedding and a deteriorating economy.
The JSE-listed telecommunications operator, which is still 40.5% held by the state, said revenue for the quarter ended 31 December 2023 climbed to R11.3-billion, supported by growth in the consumer division, where mobile revenue climbed 4.8% to reach nearly R6-billion (mobile service revenue rose by 7.1%).
“Group performance for the quarter was pleasing against a strong comparative quarter and Telkom managed to grow the top line as compelling value propositions drove next-generation revenue growth and operating earnings, thereby affirming our data-led strategy,” group CEO Serame Taukobong told investors on Monday.
“Our cost-reduction initiatives also contributed to improved operating Ebitda (a measure of operating profit) as they partially offset inflationary increases, increased bad debt provisions and the added cost of load shedding.”
Telkom Consumer and Openserve made “impressive progress” and advanced operating earnings by 20.6% and 7%, respectively, Taukobong added.
“Telkom remains committed to meet its medium-term guidance for the 2024 financial year with a continued focus on cash generation and stringent capital allocation, with expected capital expenditure for the year better than indicated guidance.”
Swifnet
The group said it hasn’t yet concluded a deal to dispose of Swiftnet, its masts and towers business, but continues engaging exclusively with an interested buyer on reaching the “remaining agreed milestones … including the parties significantly progressing their negotiations to agree transaction agreements”.
“We remain committed to progressing this transaction to enhance shareholder value and focus management on core business competencies, while retaining use of the infrastructure.” — © 2024 NewsCentral Media
