by MTHULISI SIBANDA
JOHANNESBURG – TELKOM has claimed the position of South Africa’s third largest mobile operator after robust interim results for the six months ending September 30.
Mobile customers are up 19 percent to 13,7 million with net additions of 2,2 million subscribers.
Telkom delivered solid earnings before interest, taxes, depreciation and amortization (EBITDA) growth despite a slight revenue decrease of 0,4 percent to R21,4 billion (US$1,386 billion) in the face of difficult trading conditions brought on by the outbreak of the coronavirus (COVID-19) pandemic.
The Group reported a healthy cash balance of R3,9 billion at 30 September
“Telkom’s decision to invest in infrastructure ahead of demand enabled us to meet the surge in demand and weather the acceleration of the decline in fixed voice revenue during the national lockdown,” Sipho Maseko, Telkom Group Chief Executive Officer, said.
Mobile data traffic is meanwhile up 81 percent, a significant increase attributable to the increase of people working from home and online schooling due to the national lockdown.
Telkom in the process overtakes Cell C in a sector with 39,4 million customers, led by Vodacom and MTN.
Telkom dividend is suspended for three years.
Maseko said the company was pleased with a solid set of results in a year where growth was challenging due to the COVID-19 pandemic that strained the South African economy.
“These results reflect the quality and dedication of our people and business partners,” he concluded.
– CAJ News