just how profitable is Telkom! (vs BT)

[cmcbugg]

As if we didn't already know how profitable Telkom was, here is a comparison with BT.

Total Operating Profit
BT - http://www.btplc.com/report/Report05/Fiveyearfinancialsummary/
2005 - £1,821mil - 30,567,000 fixed lines, 4,932,000 DSL connections
2004 - £1,414mil - 29,998,000 fixed lines, 2,215,000 DSL connections

Telkom - http://telkom.quickreport.co.za/telkom_ar_2005/
2005 - R11,222mil - 4,726,000 fixed lines, 58,532 DSL connections
2004 - R9,245mil - 4,680,000 fixed lines, 20,313 DSL connections

Assuming an exchange rate of say R12/£, BTs numbers are R21,852mil (2005), R16,968mil (2004)

So BT serve 6.5x more fixed lines than Telkom and 84x more DSL connections than Telkom but they only make a profit of about 2x what Telkom make.

So from a market a fraction of the size of Bt's, Telkom make nearly as much money as BT do. That's just plain excessive profits, but I guess we're all f***ed because the government doesn't care about excessive profits when they are the ones raking it in.

 

[Silent_Bob]

wow, thats insane!

 

[thedoc!]

As if we didn't already know how profitable Telkom was, here is a comparison with BT.

Total Operating Profit
BT - http://www.btplc.com/report/Report05/Fiveyearfinancialsummary/
2005 - £1,821mil - 30,567,000 fixed lines, 4,932,000 DSL connections
2004 - £1,414mil - 29,998,000 fixed lines, 2,215,000 DSL connections

Telkom - http://telkom.quickreport.co.za/telkom_ar_2005/
2005 - R11,222mil - 4,726,000 fixed lines, 58,532 DSL connections
2004 - R9,245mil - 4,680,000 fixed lines, 20,313 DSL connections

Assuming an exchange rate of say R12/£, BTs numbers are R21,852mil (2005), R16,968mil (2004)

So BT serve 6.5x more fixed lines than Telkom and 84x more DSL connections than Telkom but they only make a profit of about 2x what Telkom make.

So from a market a fraction of the size of Bt's, Telkom make nearly as much money as BT do. That's just plain excessive profits, but I guess we're all f***ed because the government doesn't care about excessive profits when they are the ones raking it in.

Wow!

/doc

 

[fluKe]

So BT has ~84X as many DSL connections as South Africa...
and ~6.5X as many fixed line connections...

So if we look at total operating profit per fixed line...
BT makes (2764mill *12 /30567mill) = R1, 09
Telkom makes (11222mill /4726mill) = R2, 37

According to my calculations(assuming they are somewhat correct and assuming an exchange rate of R12/£1) Telkom makes ~2.17X what BT makes per fixed line...

 

[Vio]

LOL do a DSL comparison and the truth shines through.

 

[MrJones]

You know, you still can't get passed the fact that this is Africa, and we are going to get screwed over in lot more ways than just ADSL.