Telkom’s results explained in 5 simple slides

Telkom has released its financial results for the year ended 31 March 2019, which revealed that operating revenue increased by 5.3% to R41.8 billion and EBITDA increased by 8.5% to R11.3 billion.

This growth is mainly thanks to the excellent performance of its mobile services revenue, which increased by 58.3%.

Telkom grew its active mobile subscribers by 85.9% to 9.7 million users thanks to its affordable data-centric value proposition.

The results were not only good news, however. They also revealed the biggest decline in fixed-broadband subscribers the company has ever seen.

Telkom’s ADSL, VDSL, and fibre subscribers declined from 981,176 in March 2018 to 847,650 in March 2019.

There was also a big decline in Telkom’s fixed-line subscriber base. It now has 2,267,000 fixed-line subscribers, down from 2,678,000 a year ago.

The five slides below provide an overview of Telkom’s performance over the past year.

Telkom increased revenue and EBITDA.

Telkom signed up millions of new mobile subscribers without the average revenue per user (ARPU) declining. It therefore significantly increased mobile service revenue.

Telkom lost many ADSL and VDSL subscribers, but signed up enough fixed-LTE users to increase its broadband base.

Openserve grew its fibre connections, but lost so many ADSL and VDSL connections that its overall fixed-broadband connections declined.

BCX continues to drag Telkom down with a revenue decline of R683 million.

Now read: Telkom’s ADSL and fibre shock

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Telkom’s results explained in 5 simple slides