Business8.06.2015

Telkom’s results explained in two slides

Telkom

Telkom has revealed its latest financial results for the year ended 31 March 2015, which show a big increase in mobile revenue and mobile subscribers.

Telkom CEO Sipho Maseko said that on a like-for-like basis, net revenue increased 3.1% to R26 billion.

Group operating costs, excluding depreciation, were down 1.2% to R17.7 billion. “Our normalised EBITDA rose by 15.1% to R9 billion,” said Maseko.

Telkom recorded a normalised profit after tax of R2.8 billion for the year, excluding severance package costs and the tax benefit of the settlement of the post-retirement medical aid liability for certain pensioners.

This is a 135.7% increase compared to the previous year. Group EBITDA also improved 15.1% to R9 billion (2014: R7.8 billion).

“We set out to achieve further stability in the business and largely attained it under challenging conditions,” said Maseko.

“We are nearing the completion of the stability phase of our turnaround, which included a de-risking of the mobile business, strengthening of our balance sheet with the settlement of the post-retirement medical aid liability for certain pensioners, and addressing our fixed asset base.”

He said Telkom has been able to maintain good cash management with free cash flow at R3.9 billion and a low gearing ratio with very low net debt.

Some of the biggest revenue growth came from mobile. Telkom’s mobile net revenue increased 174.1% to R954 million, while mobile data revenue increased 50.6% to R988 million.

Telkom’s active mobile subscribers increased 21.2% to 2,186,774, with a blended average revenue per user of R75.05.

Telkom’s key financial highlights include:

  • Group net revenue increased 3.1% to R26 billion
  • Group operating expenses, excluding depreciation, down 1.2% to R17.7 billion
  • EBITDA increased 15.1% to R9 billion
  • Headline earnings per share increased 60% to 532.5 cents
  • EBITDA margin recorded at 28.3%
  • Group debt reduced by 92.8% to R151 million
  • Net debt to EBITDA of 0.02x
  • Return on invested capital increased from 4.6% to 11.3%
  • Total Dividend of 245 cents per share will be paid

The slides below provide an overview of Telkom’s results over the last financial year.

Telkom results

Telkom results

Telkom results

Telkom results

The fact sheet below provides further insight into the results.

Telkom fact sheet

Telkom fact sheet

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