Telkom has released its interim results for the six months ended 30 September 2020, which revealed a mobile unit that is performing well and a business unit which is struggling.
Looking at the company as a whole, revenue was down 0.4% to R21.396 billion while EBITDA increased 6.3% to R5.908 billion.
The Mobile business sustained its growth trajectory into the first half of the year, growing service revenue by 47.8% to R8.282 billion.
Telkom Mobile benefited from the increased data demand due to people working from home during the pandemic, with mobile data revenue increasing by 53.8%.
On the business side, BCX and Yep! revenue declined compared to the prior period, negatively impacted by the national lockdown, as customers were under severe financial pressure.
“We saw customers requesting extended payment terms and applying for payment holidays to manage their liquidity,” Telkom said.
Migration to remote working negatively impacted the enterprise fixed business, as usage was diverted to mobile connectivity, leading to a significant decline in fixed voice revenue.
Enterprise customers reduced IT spend in the first half of the year and postponed some of their capital investment projects because of uncertainty caused by COVID-19.
Openserve saw an increase in demand for fixed connectivity resulting in an improved fibre-to-the-home (FTTH) connectivity rate from 43.6% in the prior period to 53.8%.
The lockdown had a negative impact on enterprise fixed voice volumes and impacted Openserve negatively.
Consequently, Openserve’s revenue declined by 13.6% compared to the prior period, driven by fixed voice revenue.
Gyro masts and towers continued to commercialize its current portfolio in the period, with revenue increasing 7.7% to R628 million.
Here are a few interesting numbers from Telkom’s latest financial results for the six months ended 30 September 2020.
The increase in active Telkom mobile subscribers between September 2019 and September 2020. Telkom now has 13,686,689 mobile subscribers.
The increase in Telkom mobile broadband subscribers between September 2019 and September 2020. Telkom now has 9,643,969 mobile broadband subscribers.
The decline in Telkom fixed broadband subscribers between September 2019 and September 2020. Telkom now has 637,884 fixed broadband subscribers.
The number of fixed-access lines which Telkom lost between September 2019 and September 2020. Telkom now has 1.432 million fixed lines.
The number of Telkom employees that were cut between September 2019 and September 2020. Telkom now has 7,234 employees, down from 9,544 a year ago.
Telkom’s fixed broadband data volumes in petabytes.
Telkom’s mobile broadband data volumes in petabytes.
The decline in fixed-line voice minutes on Telkom’s network between September 2019 and September 2020.
The number of Telkom mobile sites.
The decline in fixed revenue between September 2019 and September 2020.
The increase in mobile revenue between September 2019 and September 2020.
The decline in IT revenue between September 2019 and September 2020.