Telkom has reported increased mobile service revenue and mobile subscribers over its past financial year, although the company also recorded a drop in average revenue per user.<\/p>\n
This is according to Telkom’s annual financial results for the year ending 31 March 2024.<\/p>\n
The telecommunications company said it had grown its mobile subscriber base to 20.4 million, an 11.9% increase from the previous year.<\/p>\n
Despite this increase, its average revenue per user (ARPU) dropped by R2 to R84 per customer compared to the 2023 results.<\/p>\n
Overall, Telkom did see an increase in revenue from its mobile services by 6.8% to R19.03 billion.<\/p>\n
The postpaid subscriber base remained relatively stable, decreasing slightly by 0.5%. However, contract ARPU declined substantially from R201 last year to R180.<\/p>\n
Prepaid customers, on the other hand, increased substantially by 14.3% to 17.5 million, with ARPU increasing by R1 to R65.<\/p>\n
Telkom said this increase was due to “the acquisition of higher-quality connections and increased charging behaviour.”<\/p>\n
Mobile broadband subscribers also grew by 9.5%, or just over 1 million customers.<\/p>\n
Telkom’s mobile broadband subscribers now total 12.7 million, which the telco said represents 62.3% of its mobile subscriber base using the broadband service.<\/p>\n
Throughout the year, Telkom invested R2.6 billion into capital expenditure on its mobile services.<\/p>\n
This included R972 million spent on acquiring spectrum, which the company says expanded coverage by 2.5%, now reaching 7,738 sites.<\/p>\n
Network resilience also constituted this investment, replacing and repairing lithium-ion batteries at over 1,606 sites.<\/p>\n
Telkom described load-shedding as a major hindrance to its mobile earnings, spending R236 million on the adverse effects caused by the power cuts.<\/p>\n
However, Telkom’s overall capital expenditures significantly decreased by 17%, or R1.3 billion, compared to the previous year.<\/p>\n
Telkom Group CEO Serame Taukobong said the company had taken a measured approach to capital expenditure during the financial year.<\/p>\n
“Better-than-expected positive free cash flow of R424 million was driven by improved operational performance and our measured approach towards capital expenditure (capex) this year,” he said.<\/p>\n
“The decrease aligns with our strategy and the cyclical nature of capital expenses.”<\/p>\n
Taukobong noted that this decrease is largely due to the expenditure on batteries to mitigate the effects of load-shedding the year before.<\/p>\n","protected":false},"excerpt":{"rendered":"
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