Telkom in red and black

Telkom’s latest financial results show that the company is struggling in the fixed and business segments, while its mobile operations are doing well.

Telkom’s interim results for the six months ending 30 September 2020 show that its revenue declined by 0.4% to R21.4 billion.

This decline in revenue was mainly a result of the poor performance of its fixed and information technology units.

Fixed revenue declined from R10.4 billion to R8.5 billion while IT revenue declined from R3.4 billion to R2.9 billion.

BCX and SMB saw declines of 11.3% and 25% respectively, driven by a decline in enterprise fixed voice revenues.

These declines were offset by the strong performance of its mobile unit, where revenue increased from R7.1 billion to R9.5 billion.

Telkom’s mobile subscriber base increased by 19% to 13.7 million with net additions of 2.2 million.

Another strong performer was Gyro, whose masts and towers revenue increased 7.7% to R628 million despite the slowdown in the permitting and construction process.

Telkom CEO Sipho Maseko said they are pleased with a solid set of results in a year where growth was challenging due to the COVID-19 pandemic that strained the South African economy.

“These results reflect the quality and dedication of our people and business partners,” Maseko said.

Telkom in red and black

The table below provides an overview of Telkom’s interim results for the six months ending 30 September 2020.

Financial results
Component September 2019 September 2020 Change
Total revenue 21,479 21,396 -0.4%
Fixed revenue 10,408 8,513 -18.2%
Mobile revenue 7,073 9,453 +33.7%
Information technology 3,445 2,909 -15.6%
Trudon 233 165 -29.2%
Gyro 321 356 +10.9%
Fixed subscribers
Fixed broadband subscribers 781,255 637,884 -18.4%
Closer subscribers 564,045 343,738 -39.1%
Internet all access subscribers 476,763 362,700 -23.9%
Fixed access lines 1,975,000 1,432,000 -27.5%
Managed data network sites 41,655 36,412 -12.6%
Mobile subscribers
Mobile broadband subscribers 7,822,178 9,643,969 +23.3%
Mobile ARPU (rand) 82.31 112.55 +36.7%
Traffic volumes
Fixed broadband data volumes (petabytes) 558 723 +29.6%
Mobile broadband data volumes (petabytes) 265 479 +80.8%
Total fixed-line traffic (millions of minutes) 4,708 3,352 -28.8%
Group employees
Telkom company employees 9,544 7,234 -24.2%
BCX group employees 5,374 5,232 -2.6%
Yellow Pages employees 184 112 -39.1%
Gyro employees 95 99 +4.2%

Now read: Telkom fixed-line bloodbath

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Telkom in red and black