Telkom's worsening debt problem

[mylesillidge]

Telkom has a big problem

Telkom’s net debt to EBITDA ratio increased 2,654% over the last eight years, and is getting worse.

Telkom’s interim results for the six months ended 30 September 2022 revealed that revenue declined 0.7% from R21.3 billion to R21.2 billion.

 

[r00igev@@r]

If Telkom has a problem the ESKOM is moer toe.

 

[Paulsie]

If Telkom has a problem the ESKOM is moer toe.

Eskom overall disaster aside, Eskom has in recent years been able to pay debt down. Unlike Telkom, which has to borrow just to pay (think paying credit with getting more credit).

"As Telkom struggled to service its debt from earnings, it raised loans of R3.3 billion to fund the settlement of maturing debt."

In simple terms, Telkoms debt > (income - operating expenses).

 

[Quintrix]

Previous CEO was always praised for "saving" the company while he was on board and now a slightly different picture is emerging of a problem 8 years in the making.?
Would be interesting if somebody can do an in depth analysis of his reign. Remember there has been a number of rounds of staff reductions throughout this period as well as other cost saving initiatives such as the move out of the buildings in a Pretoria CBD(not sure if they were owned and rented). What is Sipho's true legacy? Reducing expenses or growing the business/income?

 

[Space]

There are SEVERAL percentages incorrectly calculated in the second half of the Daily Investor article - one would think that these financial journo’s would have a basic grasp of operating a calculator.

Also, a 2.896% increase in debt over 8 years is not catastrophic - it’s basically keeping parity.

 

[St5]

Telkom will ALWAYS have a deficit, because their admin is in such a mess.
They have no idea what they're doing!!!!!

 

[Johnatan56]

Telkom’s net debt increased by 2,896% over the last eight years — from R545 million in 2014 to R16.326 billion in 2022.

Who'd have thought building and rolling out a fiber network would incur debt....

“We believe with R2.5 billion in cash and R2.3 billion in unused facilities, there is enough headroom to fund and invest in strategic initiatives,” he said.

He added that their debt levels remain within acceptable limits and that Telkom’s balance sheet is strong despite its increasing debt.

Is the only thing you should take out of this, that Telkom is no longer a monopoly on last mile infrastructure and in the mobile space they're also competing with others.

 

[Agent_Smith]

Is Telkom privately owned? Or is it still a SOE? Because if it's the latter, then I think I see the problem...

 

[Goedgedacht]

Telkom IS a big problem

Fixed.

 

[Johnatan56]

Is Telkom privately owned? Or is it still a SOE? Because if it's the latter, then I think I see the problem...

Owned by the state, 40.5% government, 14.8% PIC. That said, it's one of the better runs SOE, more because it actually operates like a company.

 

[Kung Fu Porkchop]

Just kill Telkom already

 

[Benedict A55h0le]

55% ANC cadre owned. Good luck with that.