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Telkom eyes growth through fit-for-purpose operating model

Telkom CEO Sipho Maseko

Telkom CEO Sipho Maseko

Photo by Duane Daws

5th June 2017

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

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After four years of an aggressive turnaround, JSE-listed Telkom is now on stable ground and has been left with a fit-for-purpose operating model, housing five entities that are expected to be self-sustaining.

The group reported making significant strides in a difficult operating environment and having set itself on a stable growth path, Telkom CEO Sipho Maseko said on Monday.

“It has been a very interesting four years,” he told attendees at the company’s 2017 financial results presentation, held at BCX’s premises, in Midrand.

“We accelerated our capital investment to ensure future growth, focusing on fibre roll-out and our mobile business. We have now created the implementation capability to support our strategic growth areas,” he added, pointing to the activities of the past year that would further support growth.

“We can safely say we have stabilised the company,” he said.

Now, with the integration of BCX completed and the breakeven within the mobile unit achieved, Telkom, BCX, Openserve, Trudon and Gyro are expected to hold their own after the restructure.

Housed under the original brand name, Telkom will focus on the consumer side and will be responsible for mobile growth through data, high-speed broadband growth and content and value-add services.

The mobile business was the star performer of the group during the year ended March 31, having turned its fortunes around after years of losses, and delivered service revenue growth of 38.4% and earnings before interest, taxes, depreciation and amortisation of R660-million.

With the full integration of BCX now completed, Telkom expected the unit to focus on the business-to-business solutions, including cloud computing, unified communications, big data analytics, Internet of Things and security.

Meanwhile, Openserve remained Telkom’s wholesale open-access play and was continuing its network modernisation and commercialisation and the transformation of service delivery.

Openserve boasted more than 2.2-million premises passed with a fibre network of 149 000 km.

Telkom’s 65%-owned Trudon will keeps its focus on the e-commerce market, through mobile ad exchange, expanding omni-channel offerings, establishing e-commerce market place and expand over-the-top partnerships.

Lastly, the latest addition to Telkom’s network of companies, Gyro, will house the group’s property portfolio, focusing on managing its mast and towers, deliver property services management and undertake property development.

“All these units will have to have their own growth strategy,” said Maseko.

Edited by Creamer Media Reporter

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