Telkom’s financial results for the year to 31 March 2021 is a tale of two parts – mobile doing great, and the rest struggling to grow.
Telkom’s revenue was basically flat (up 0.4%) at R43.2 billion, but its EBITDA grew 11.7% to R11.97 billion thanks to increasing its EBITDA margin to 27.7%.
The company is transitioning from a fixed-line operator to a converged ICT provider, and its latest results clearly shows this transition.
Growth is now driven by the mobile division while legacy fixed-voice income only contributes 15% to the business.
Telkom CEO Sipho Maseko said the mobile business continued its growth trajectory as they surpassed 15 million subscribers during the year.
Mobile data revenue grew by 41.0% and underpinned the 34.5% increase in mobile service revenue to R16.94 billion.
Telkom’s fixed-line and business segments suffered with declining subscriber numbers and revenue.
The company’s fixed-line subscribers dropped from 1.602 million in March 2020 to 1.284 million in March 2021.
Telkom’s BCX unit also suffered a decline in revenue as the national lockdown and the work-from-home response impacted fixed-voice revenues from enterprise customers.
To get a quick overview of Telkom’s latest financial results, here are slides from the company’s presentation.