Announcing the Telkom Group interim results for the six months ended September 30, 2008, CEO Reuben September today said the Group delivered a pleasing 9.8% growth in revenue to R29,884 million. <\/p>\n
Telkom is positioning itself to take advantage of the future converged services environment that is fast becoming a global best practice. To this end, it is developing capabilities to offer the full suite of converged services that encompass fixed, mobile, data and multimedia services.<\/p>\n
“The ability to pull traffic back onto the fixed line network through mobile service and leverage the NGN for full convergence and high value data services will enhance Telkom’s core defend and grow strategy,” said September.<\/p>\n
The fixed-line segment delivered revenue growth of 2.8% to R16,565 million. Data revenues increased by 12.2% to R4,459 million.<\/p>\n
The ADSL service experienced significant growth. Subscriptions grew to 491,774, an increase of 46.7%. <\/p>\n
Multi-Links experienced an increase in subscriber numbers from 813 392 to 1 780 985.<\/p>\n
Telkom remains focused on its revenue opportunities from data and high-value added services, as well as the innovative products and solutions being developed in line with the NGN roll-out.<\/p>\n
Telkom’s ADSL performance was very impressive. ADSL subscribers grew by 46.7%. Between 30 September 2007 and 30 September 2008, ADSL DSLAMs increased from 2660 to 3036. Significant growth was stimulated by the commoditisation of ADSL, the Do Broadband offering, the Self-Install Option, ADSL port automation and wholesale services.<\/p>\n
Other results announced indicate a 96.0% increase of Do Broadband subscriptions and a 17.9% increase in internet all access subscribers.<\/p>\n
ADSL average time to install improved to 17 days from 20 days (achieved at March 31, 2008), while 60% of all ADSL installations are now done through the self-install option. Telkom is targeting 592,000 ADSL subscribers for the 2009 financial year.<\/p>\n
According to Telkom one of the company’s key imperatives is commitment to customer service. It has established a robust customer data and customer analytics environment to improve its Churn Management Model and is finalising its Customer Portfolio Management initiative. <\/p>\n
The company is streamlining the Contact Centre Network to make Telkom more accessible to customers, and improving its customer communication by redesigning its escalation process. <\/p>\n
Telkom continues to pursue opportunities outside the borders of the country. <\/p>\n
Multi-Links’ impressive growth is aligned to its capital expenditure programme that has, in the period in question, seen the realisation of several milestones.<\/p>\n
Mobile based transmission stations have been increased to a total of 589 and optic fibre deployment now covers 3800km, while a packet exchange has been commissioned in Abuja for 300 000 subscribers.<\/p>\n
Participation in new cable systems gives Telkom the edge in terms of global connectivity and data solutions. <\/p>\n
The Company’s determination to move into the ICT market in Africa is evident as this drive gained momentum by the acquisition of M-Web Africa and 75% of M-Web Namibia for US$63 million.<\/p>\n
“The transaction for the largest satellite-based ISP in sub-Saharan Africa is expected to close in the first half of the 2009 calendar year,” said September. He added that, together with the ISP brands to be acquired with this deal, there are significant synergies to be extracted through Africa Online and Multi-Links.<\/p>\n
September said the need for the re-positioning of fixed line in today’s extremely competitive environment is urgent due to continuous pressure on Telkom’s voice revenue. <\/p>\n
“The fixed line’s strength in the data market and need to combat fixed-mobile substitution led to the Board recommending to shareholders the sale of 15% of Telkom’s stake in Vodacom to the Vodafone Group and the further unbundling of the remaining 35% stake in Vodacom to Telkom shareholders.” <\/p>\n
“I am excited about Telkom’s repositioning within the market. Our strength is our network and we intend to utilise the proceeds to leverage this strength for the benefit of all stakeholders. “<\/p>\n
“We also intend to accelerate the expansion of our network including the Next Generation Network, selectively build a mobile network and explore acquisitive opportunities particularly in the data centre arena,” concluded September.<\/p>\n
GROUP FINANCIAL KEY PERFORMANCE AREAS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2008<\/strong> <\/p>\n –Operating revenue up 9.8% to R29.9 billion OPERATIONAL SUMMARY:<\/strong> <\/p>\n –Managed data network sites increased by 20.8% to 28,051
–Group EBITDA decreased by 2.8% to R10.0 billion.
–Group EBITDA margin decreased from 37.7% to 33.4%.
–Operating profit decreased by 9.3% to R6.7 billion.
–Net debt to EBITDA increased to 2.0 times from 1.7 times at September 30, 2007.
–Cash generated from operations decreased by 0.5% to R6.4 billion.
–Headline earnings per share increased by 0.4% to 745.2 cents per share. <\/p>\n
–Internet all access subscribers increased by 17.9% to 395,088
–ADSL subscribers increased by 46.7% to 491,774
–Calling Plan subscribers increased by 28.1% to 507,985
–Annuity revenue increased by 7.6% to R3.6 billion
–Multi-Links customers increased by 578.6% to 1,780,985<\/p>\n