Telkom has issued its quarterly trading update for the April-June 2021 period, showing substantial growth in mobile customers and mobile data revenue.
“Telkom published a solid set of results for the first quarter of the year in a challenging trading and economic environment,” said outgoing Telkom CEO Sipho Maseko.
“Group revenue and EBITDA grew 3.5% and 7.3% respectively, demonstrating recovery in topline revenue and strong profitability compared to the prior year.”
Telkom’s revenue grew to R10.6 billion after a full year of flat group revenue. This was mainly driven by its mobile business.
“What has been encouraging is the mobile business sustaining its growth trajectory despite a very strong prior year first quarter, with postpaid ARPU holding steady at around R220,” said Maseko.
The company’s mobile service revenue grew 13% to R4.4 billion, supported by 36.3% year-on-year growth in active customers to 16.1 million.
Much of this growth comes from prepaid. Telkom said new postpaid connections remains low due to consumers being under pressure from a weak economy.
Mobile data revenue grew by 11.1% to R3.2 billion, supported by 30.9% growth in mobile broadband customers to 10.5 million, representing more than 65% of Telkom’s active customer base.
Telkom’s postpaid average revenue per user held steady at around R220.
Capital expenditure of R534 million was invested in coverage with 6,646 base stations to-date reflecting an 8.8% year-on-year increase in base stations.
Overall, Telkom’s consumer business revenue grew 8.3% to R6.5 billion.