Telkom CEO Sipho Maseko
Photo by: Creamer Media's Dylan Slater
Telecommunications group Telkom’s mobile division elevated its overall operating revenue, headline earnings and earnings before interest, taxes, depreciation and amortisation (Ebitda) for the financial year ended March 31.
The group on Monday posted a 22.6% surge in headline earnings a share to 722c and a 5.3% hike in group operating revenue to R41.8-billion for the year under review.
Ebitda was up 8.5% to R11.3-billion owing to ongoing sustainable cost management, while the Ebitda margin expanded by 0.8 of a percentage point to 27.1% during the year.
“Telkom’s performance for year ended March 31, 2019, driven by the mobile business, saw mobile services revenue increase by 58.3%, underpinned by the group’s broadband-led proposition,” said Telkom Group CEO Sipho Maseko.
The increase was supported by 85.9% growth in active subscribers to 9.7-million.
In line with global trends, Telkom’s fixed business remains under pressure.
“Over the past six years, the contribution of our growth pillars grew significantly, with the mobile revenue contribution increasing from 3.2% to 25.7%, while information technology revenue grew from 0.9% to 16.2%,” Maseko added.
Ongoing investment is enabling Telkom to grow new revenue in evolving technology, offsetting the traditional revenue shrinkage.
“Telkom’s capital investment of R7.7-billion – with a capital expenditure to revenue ratio of 18.4% – continues to underpin business growth,” he noted.
Telkom declared a dividend of 362c for the year under review, a year-on-year increase of 2%.