Telkom SA Limited today announced Group annual results for the year ended 31 March 2011.
Telkom CEO Pinky Nombulelo Moholi said that the last financial year has been tough with revenue declining 5.2% to R33.4 billion.
“Competition, pricing pressures and regulatory intervention have all had an impact on our revenue. The declines seen in our traditional fixed-line voice revenue are set to continue,” said Moholi.
Moholi said that the years of investment in Telkom’s network assisted data revenue, which grew 7.7% to R10.7 billion.
“This is a good achievement, given the muted economic conditions and intensifying competition,” she said.
“Operating expenditure decreased 1.5% to R29.7 billion despite the 10.3% growth in employee expenditure to R9.7 billion and mobile start-up expenditure of R1.2 billion. This decrease is largely as a result of the drop in termination rates payable to the other mobile operators.”