Telkom is making more money, getting more customers

Telkom has released its financial results for the year ended 31 March 2016, which show that the company’s operating revenue grew by 13.9% to R37.3 billion.

The company said its profit after tax was also up by 32.2%, but excluded voluntary early retirement and severance package costs of R2.1 billion and the related tax impact of R517 million.

“The group recorded a reported profit after tax of R2.4 billion. This is 25.4% lower than the previous period and was mainly as a result of voluntary early retirement and severance package costs,” said Telkom.

Other highlights, when discounting the severance package costs, included:

• EBITDA up 16.1%
• Capex up 16.8%
• Group net revenue up 3.7%
• Group data revenue up 29.2%
• Mobile service revenue up 39.3%
• Telkom company employee expense down 9.6%

Telkom said it has seen customer growth of 23.8% over the period, and increased the number of LTE integrated sites on its network by 9.9% to 1,448.

Challenges the operator faces include a 1.9% decrease in voice and subscription revenue and an 18.5% decrease in leased line revenue.

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