Telecommunications

Telkom is rocking

Telkom

Telkom’s earnings jumped massively in the 2024 financial year, allowing the telecoms giant to swing from a loss to a profit.

Telkom released its results for the year through March 2024, which revealed strong results for the company.

Revenue from total operations increased from R42.53 billion to R43.23 billion – a modest 1.65% increase. EBITDA grew by 17.53% to R9.43 billion.

This saw the company’s profit for the year grow by 81.14% to R1.88 billion, from a loss of R9.97 billion the previous year.

Basic earnings per share from the company’s continuing operations also skyrocketed, going from a loss per share of 2,120 cents to earnings of 297.8 cents – a 114% increase.

Telkom said these results were attained despite inflationary pressures and the added operating cost resulting from power outages in South Africa. 

Its increased operating margins in the 2024 financial year were driven by continued demand for and growth of its next-generation (NGN) offerings. 

A stronger operational performance, along with cost-optimisation initiatives, allowed the company to expand its margins and grow earnings.

“Group performance for the year improved against a challenging economic backdrop in South Africa,” the company said. 

“Our data-led strategy delivered ahead of industry trends as we grew mobile service revenue by 6.8% and surpassed 20 million mobile subscribers.” 

In addition, Openserve’s fibre connectivity rate advanced to 48.5% as Telkom prioritised monetising its fixed network and passed more than 1.2 million homes with fibre. 

BCX also made good strides in growing its IT service revenue, and Swiftnet’s tower rollout programme and tenant growth further contributed to revenue growth and margin expansion.

In the reporting period, Telkom invested R6.1 billion towards network resilience, expanding its mobile network, modernising its fixed network infrastructure and fortifying its skills and capabilities for information and communication technology (ICT) managed services. 

“This investment included spectrum, which is already deployed to further improve our offerings and service levels to retail, enterprise and wholesale customers,” the company said.

The telecoms giant said it had also made excellent progress in delivering on its strategic imperative to unlock value through the proposed disposal of Swiftnet for R6.75 billion. 

While Telkom did not declare a dividend for this financial year, it said the company is on track and will be in a position to pay dividends in the near term, with the 2025 financial year being the target.

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