Telkom earnings surge 175 percent

Cerberus · Jun 7, 2004

http://business.iafrica.com/news/327407.htm

Don't know about you guys but I think this means Telkom is getting way to much and giving us way to little... you can't tell me that they can't optomise their profits for the home user.

"Telecommunications group Telkom on Monday reported an impressive 175 percent jump in headline earnings per share to 864 cents for the year ended March 31, from 314 cents a year ago.

A final dividend of 110 cents per share was declared, making a total of 200 cents for the year.

The I-Net Bridge consensus forecast was for HEPS of 725.9 cents per share and a dividend of 226.4 cents.

In its first full year as a listed company, Telkom's group operating revenue was up 8.8 percent to R40.795-billion, from R37.507-billion, driven by a 23.3 percent increase in mobile revenue. Net profit for the year improved to R4.523-billion from R1.63-billion a year ago, while operating profit increased 39.5 percent to R9.088-billion.

Cellular operator Vodacom, in which Telkom has a 50 percent interest, saw operating revenue rise to R10.352-billion from R8.401-billion a year earlier.

Growth, efficiencies drive strong results — CEO

"The Telkom Group delivered strong results for the year. Our continual focus on driving greater capital and operational efficiencies combined with good growth from both our fixed-line data business and our mobile segment, has allowed us to deliver headline earnings per share growth of 175 percent," said Telkom CEO Sizwe Nxasana.

"In our fixed-line business, we expanded operating margins by aggressively defending revenues and systematic streamlining of our operations, while our mobile business continued to deliver robust growth by winning customers in the local market and in other African countries.

"These achievements underpinned the generation of strong cash flows, allowing the group to repay debt and invest capital in driving growth and supporting ongoing cost savings.

Looking ahead, Nxasana said Telkom would seek to continue optimising its capital structure to support the appropriate allocation of cash to ongoing cost saving initiatives and pursuing new growth opportunities, while returning dividends to shareholders."

Regards
Cerberus

gripen · Jun 7, 2004

Well, they are charging everyone a fortune for something they dont even pay for or pay very little for ie. local bandwidth. Imagine if they contributed a few of their billions to implementing low cost connectivity for everyone. But hey, thats our country. Different things are important to the people in power.

They are also trying to pay for their annual car upgrades and keep the shareholders happy. Of course its not good enough for the Malaysian shareholders and now Telkom will rape their customers even more to keep the offshore interest in the country.

How can they charge a significant amount for local bandwidth when they are basically just using their own massive LAN? whats the major cost?

Also, I think they are making a killing with ADSL since they are using almost no bandiwdth comparatively speaking, due to the cap. They are also waayy overcharging for something that it is well known only costs very little to operate. Just have a look at countries like australia.

MaD · Jun 7, 2004

Rumour has it Telecom Malaysia is unhappy with SBC's management strategy, and therefore are mulling selling so they can invest overseas again in another comms company which they see has great potential.

If it wasn't for $BC we would have decent bandwidth prices no doubt, TM are going back overseas soon because there's no end in sight to the South African consumer being ripped off and I'm sure as hell they don't want to be a part of that. I mean who'd want to work with these ruddy Americans at Telkom anyway...?

Where others have progress, we have Telkom.
Hellkom website - http://telkomsucks.0catch.com

BTTB · Jun 7, 2004

Also they see the writing on the wall IMO. Over and above Telkom's share value basically being based on the rip off prices they have inflicted on the SA Consumer, I think we might see the result of years of abuse when the SA Consumer gets a choice of service provider one day and drops Telkom in droves. This I think is also what the state is worried about seeing that they own 70% of the shares. What a contrast in SA. The state owns 70% of a listed company that apparently have no say over or cant seem to control and is run by a bunch of money hungry yanks and the rest of the staff seem as if they are just waiting for the end of month pay packet. So much for BEE and SA's Economic Development. If this is an example of Privatisation, then the state has failed dismally. They are the only winners in the picture with their 70% share. And we must cough up. Aren't we paying taxes to run this country. Why does the state need Telkom dividends to run SA. Isn't their enough money? I was led to believe that SARS has past its projected targets and has done very well in the last few years with tax collection. One of the few departments that seem efficient. I wonder why?
I'm still glad I never bought Telkom shares. It was the principle of the matter.

<hr noshade size="1">You can take Telkom out of the Post Office but you can't take the Post Office out of Telkom.

MaD · Jun 7, 2004

Yup... and I wouldn't be surprised *at all* if old IVY has a truckload of Telkom shares.

Where others have progress, we have Telkom.
Hellkom website - http://telkomsucks.0catch.com

Jerrek · Jun 8, 2004

<blockquote id="quote">quote:<hr height="1" noshade id="quote">Originally posted by MaD
 If it wasn't for $BC we would have decent bandwidth prices no doubt
<hr height="1" noshade id="quote"></blockquote id="quote">
No, if it wasn't for SBC then someone else would have bought the shares. You have no one but yourself and your own government to blame. TAKE SOME PERSONAL RESPONSIBILITY INSTEAD OF ALWAYS SCREAMING "It is America's fault!"

BTTB · Jun 8, 2004

Arg, you again and your f....g personal responsibility again. Eish.
No need to swear you know. We understand your viewpoint. We have our own.

<hr noshade size="1">You can take Telkom out of the Post Office but you can't take the Post Office out of Telkom.

antowan · Jun 8, 2004

I have to agree, it is not always America's fault. A country is bigger than its people remember. Let me explain. I will always love my country, no matter who governs it. It is safe to say though that there will always be somebody from South Africa who will try to rip others off. But I still love my country!

See?

Telkom will be in trouble if the new second operator comes in. But be warned, they will only be in trouble if the second operator gets enough freedom. If interested parties manage to convince government to handicap the SNO then we are in for a not so nice surprise. I am willing to bet that this will be the case. I do not think the regulator will allow Telkom to be blown out of the water in one go. This will leave us with one operator again. This is the reason I think it has been taking so long in the first place. Telkom will still be protected in some ways.

Personally I think Telkom should have been broken up like the baby Bells in the USA. Make it compete against itself. There are so many things that can go wrong. If no regulations are put in place there will be nothing to prevent the SNO from entering into agreement with Telkom to fix telecom prices.

We are in for a rough ride people! Salvation is all but in sight!

Cheers

He who does not understand the value of war at the right time, cannot comprehend the value of life at any time - Anonymous

BTTB · Jun 8, 2004

Morning Antowan[

]

I take note of your point and confirm what you are saying. We are in for a rough ride, unless some serious thinking is done and proper policies put in place.
If the SNO has to provide its entire infrastructure then it's going to be crippled. Telkom has many decades of head start on it.
I think Jerek should understand, I believe he does. We are merely victims and are expressing our feelings however simple they might seem. He however owns Telkom shares (read something similar on another thread) and is sitting on the other side of the ocean looking in. So he is basically part of the oppression we are feeling. One can also understand that he would want Telkom to be a financial success.
Going back to the original thread. It was stated that a rumour is going around that Telecom Malaysia are considering pulling out and selling their shares. Quote by Mad, " Rumour has it Telecom Malaysia is unhappy with SBC's management strategy"
So if this is anywhere near the truth one wonders what they are unhappy about. They have heard that the SNO is now the states priority and the bubble is going to burst perhaps? They think that SBC is jerking the SA Consumer? Who knows?

Another thing Antowan, we should not condone swearing on this forum.

<hr noshade size="1">You can take Telkom out of the Post Office but you can't take the Post Office out of Telkom.

onionpeel · Jun 8, 2004

This is the money game:
SBC will hang in there until the last moment, using insider information to sell shares shortly before any major decline in the share price. This is on the assumption that SBC isn't happy with the status quo. At the moment Telkom is making mega bucks (all of us are contributing to that) and you can bet that this profit margin will be maintained or increased (at the public's expense). This is why I am against going for that stupid 4GB account and then having to pay call charges halfway through the month on top of that so that I can have any kind of internet access or perhaps another ADSL account.
The biggest tragedy of this is that Telkom have the monopoly and there are some people who just can't help but feed Telkom more profits than is absolutely necessary. Maybe I, like many others, are one of those. [B)]

BTTB · Jun 8, 2004

<blockquote id="quote">quote:<hr height="1" noshade id="quote">some people who just can't help but feed Telkom more profits than is absolutely necessary. Maybe I, like many others, are one of those.<hr height="1" noshade id="quote"></blockquote id="quote">

Yes, we are all guilty.

<hr noshade size="1">You can take Telkom out of the Post Office but you can't take the Post Office out of Telkom.

quik · Jun 8, 2004

I think it's more a case of victimisation than being guilty of anything. We don't really have or have ever had a choice in the matter of SA telecoms, and won't for as long as Telkom has a say in the matter.

So many of us rely on infrastructure in order to survive, I've read somewhere that communication costs make up to 50% of expenses for companies in SA where it accounts for 5% on average in other countries. SHOCKING !!!!

I ask this question once again. How on earth can a company be labled proudly South African when they defy the very definition thereof?

Ask yourself which of these two definitions better suite Telkom:

<blockquote id="quote">quote:<hr height="1" noshade id="quote">Proud: Feeling pleasurable satisfaction over an act, possession, quality, or relationship by which one measures one's stature or self-worth.<hr height="1" noshade id="quote"></blockquote id="quote">

Feeling pleasurable about massive headline earnings at the expense of ones clients, trampling relationships through inferior support and communication, and degrading services while inflating costs at the same time, is this quality?

I don't think they live up to even one of these criteria.

<blockquote id="quote">quote:<hr height="1" noshade id="quote">Arrogant: Having or displaying a sense of overbearing self-worth or self-importance. Marked by or arising from a feeling or assumption of one's superiority toward others.<hr height="1" noshade id="quote"></blockquote id="quote">

How else could you justify blatantly disregarding the needs of clients, making ludicrous excuses and outrightly stealing from the very country that you are supposed to be proud to be a part of?

Why are people so blind to the obvious benefits of mutual gain relationships, it's been proved over and over again.

TRUTH does not lie in opinions and perception... but in that which conforms to fact and reality

BTTB · Jun 8, 2004

Also one of the PSA's criteria is:
The company must be committed to fair labour and employment practices.

Maybe Telkom isn't exactly throwing staff out the door, so to speak. Well so they say, "Telkom - employer of 32 358 people - is planning to reduce its staff numbers by 7% to 10% annually, the company said on Monday" and "Telkoms profits soars 178% to R4.5bn".

Eeerm choke, cough, splutter. They have this uncanny way of making retrenchments look like internal transfers. At the end of the day people still lose their jobs and that adds to the unemployment figures which I hear are about 40% to 50%. But in the same breath they have extended their earnings by 178%. For a company that isn't struggling financially in SA, to put people off is criminal and PSA should be "shamed" by Telkom's actions.

<hr noshade size="1">You can take Telkom out of the Post Office but you can't take the Post Office out of Telkom.

MaD · Jun 8, 2004

<blockquote id="quote">quote:<hr height="1" noshade id="quote">Originally posted by Jerrek
 <blockquote id="quote">quote:<hr height="1" noshade id="quote">Originally posted by MaD
 If it wasn't for $BC we would have decent bandwidth prices no doubt
<hr height="1" noshade id="quote"></blockquote id="quote">
No, if it wasn't for SBC then someone else would have bought the shares. You have no one but yourself and your own government to blame. TAKE SOME PERSONAL RESPONSIBILITY INSTEAD OF ALWAYS SCREAMING "It is America's fault!"
<hr height="1" noshade id="quote"></blockquote id="quote">

Jerrek, moenie n poephol wees nie man ek het gese dis die AMERIKANERS se skuld nie AMERIKA nie. Ek het niks teen Amerikaners nie - net die enes in Telkom wat ons land se telekommunikasie sektor in sy moer in ry. Ek raak nou ook bietjie blerrie moeg van jou persoonlike verantwoordelikheid manewales, druk dit saam met jou blits-vinnige kuber-ruimte toegangs-lyn waar dit hoort. Al het iemand anders die SBC aandele gekoop sou hulle beter na die pragtige land van ons gekyk het want hulle sal tien-teen-een nie geldgierige kapitaliste wees wat die land wou kaal uittrek nie soos jou maatjies besig is om te maak nie.

As jy nie verstaan wat ek nou net geskryf het nie dan moet jy maar 'n lang stap van 'n kort plank af vat, ou oorsese Trolletjie. Jy het n nare humeur, en moenie weer vloek nie, dit wys net hoe ongeleerd jy rerig is.

Where others have progress, we have Telkom.
Hellkom website - http://telkomsucks.0catch.com

mbs · Jun 8, 2004

Ag, vertolk maar vir die poephol - glo nie daar's mense in Kanada wat die vertolkingswerk vir hom sal kan doen nie - jou punt is geldelik en kan maar duidelik in Engels uitgesit word vir hom... ROFL [

][

]

BTTB · Jun 8, 2004

Ya nee wat ou boet.

<hr noshade size="1">You can take Telkom out of the Post Office but you can't take the Post Office out of Telkom.

MaD · Jun 8, 2004

OK, a direct translation...

Jerrek, don't a farthole be man I did say it not the AMERICANS's fault be not AMERICA. I have nothing against Americans - just the ones in Telkom which our land's communications sector in it's bolt rides. I touch now also slightly bloody tired of your personal resposibility man whales, push it together with your light-fast cyber-space entrance-line where it belongs. All have someone others the SBC onparts purchased would've them better after the pretty land of us looked have because they will ten-to-one not moneygreedy capitalists be what the land wanted bare outpull not like your mates busy are around to make not.

If you not farstand what I now only written have'nt then must you although a long walk from a short plank off take, old overseas Trollie. You have a nauseous temper, and mustn't again swear not it shows merely how unedookated you really is.

BTW please check your CAPS LOCK KEY - I THINK IT MIGHT GET STUCK SOMETIMES

Where others have progress, we have Telkom.
Hellkom website - http://telkomsucks.0catch.com

mbs · Jun 8, 2004

ROFL [

][

] - This made my day/night!!! I nominate MaD for Chief Translator and General Factotum to NEPAD...

Jerrek · Jun 9, 2004

<blockquote id="quote">quote:<hr height="1" noshade id="quote">Originally posted by MaD
Jerrek, moenie n poephol wees nie man ek het gese dis die AMERIKANERS se skuld nie AMERIKA nie.
<hr height="1" noshade id="quote"></blockquote id="quote">
Verduidelik vir my hoe dit my, my broer, en 'n plaas boer in Arkansas se skuld is.

<blockquote id="quote">quote:<hr height="1" noshade id="quote">Ek het niks teen Amerikaners nie - net die enes in Telkom wat ons land se telekommunikasie sektor in sy moer in ry. Ek raak nou ook bietjie blerrie moeg van jou persoonlike verantwoordelikheid manewales,<hr height="1" noshade id="quote"></blockquote id="quote">
Ek kaan so dink. "The truth hurts."

<blockquote id="quote">quote:<hr height="1" noshade id="quote"> druk dit saam met jou blits-vinnige kuber-ruimte toegangs-lyn waar dit hoort. Al het iemand anders die SBC aandele gekoop sou hulle beter na die pragtige land van ons gekyk het want hulle sal tien-teen-een nie geldgierige kapitaliste wees wat die land wou kaal uittrek nie soos jou maatjies besig is om te maak nie.<hr height="1" noshade id="quote"></blockquote id="quote">
Jy kan dit nie s^e verseker nie. Jy haat net SBC omdat hulle in jou land geld ingesit het.

<blockquote id="quote">quote:<hr height="1" noshade id="quote">
As jy nie verstaan wat ek nou net geskryf het nie dan moet jy maar 'n lang stap van 'n kort plank af vat, ou oorsese Trolletjie.<hr height="1" noshade id="quote"></blockquote id="quote">
Ek verstaan wat jy skryf. Ek is nie dom nie.

<blockquote id="quote">quote:<hr height="1" noshade id="quote">en moenie weer vloek nie, dit wys net hoe ongeleerd jy rerig is.
<hr height="1" noshade id="quote"></blockquote id="quote">
Kom ons kyk:

"moenie n poephol wees nie man"

"telekommunikasie sektor in sy moer in ry"

Now moderators, why the **** is he allowed to swear with no moderation, but as soon as I do so I'm moderated?

<blockquote id="quote">quote:<hr height="1" noshade id="quote">glo nie daar's mense in Kanada wat die vertolkingswerk vir hom sal kan doen nie <hr height="1" noshade id="quote"></blockquote id="quote">
Daar is heelwat mense, selfs 'n paar by my universiteid. Ek het nie iemand nodig om vir my te vertolk nie.

lewstherin · Jun 9, 2004

Lol!! Go Jerrek [

]

Telkom needs a leash, ICASA needs some guts, and the SA consumer needs to make it happen

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