Telkom results in a nutshell

Serame Taukobong

Telkom reported robust results for the first half of the 2024 financial year.

The telecommunications company saw an over 50% increase in profit for the period, driven by lower depreciation charges and growth in EBITDA.

Revenue rose by 2.5% to R21.78 billion, driven by mobile traffic growth, fibre infrastructure monetisation, and IT business expansion.

Telkom’s cost-reduction initiatives yielded positive results, but inflationary increases led to a 2.4% rise in operating expenses.

The company’s Openserve segment saw significant revenue growth in the period, but Telkom Consumer remained the largest contributor to revenue.

Telkom also saw significant growth in active mobile and mobile broadband subscribers, although its mobile average revenue per user (ARPU) declined.

The company also saw significant growth in its fibre business, with Fibre homes passed and connected growing by over 20%.

Telkom CEO Serame Taukobong said Telkom delivered this solid earnings growth despite a tough trading environment.

“The first half of the year saw the economy struggle to grow with a high inflationary environment, propelling the highest interest rate levels South Africa has experienced in 14 years,” he said.

“Group performance was pleasing despite these challenges. We focused on driving top-line growth and cost-reduction initiatives to offset inflationary cost pressures and the added cost of load-shedding.”

He said the company has made good progress in its Value Unlock programme and is now prioritising disposing of its masts and towers business.

Telkom’s results in a nutshell

MeasureSeptember 2022September 2023YoY Change
RevenueR21.24 billionR21.78 billion+2.5%
EBITDAR4.94 billionR5.03 billion+1.7
EBITDA margin23.3%23.1%-0.2%
Revenue from external customers
Telkom Consumer R12.61 billion R12.88 billion+2.1%
BCX R6.31 billionR6.31 billion+ <1%
Openserve R1.96 billionR2.20 billion+12.6%
GyroR368 millionR385 million+4.6%
Mobile segment
Mobile operating revenueR10.71 billionR11.09 billion+5.54%
Mobile EBITDAR2.41 billionR2.46 billion+1.87%
Mobile ARPUR87.87R84.59-3.7%
Operational information
Active mobile subscribers18.02 million18.29 million+1.5%
Mobile broadband subscribers11.03 million12.19 million+10.5%
Fixed broadband subscribers562,080554,809-1.3%
Fibre homes passed and connected443,469542,598+22.4%