Telkom reports solid results as it reinstates dividends after four years
Telkom has reported impressive results for the year ending March, driven by its data-centric strategy, leading to the reinstatement of dividend payments after a four-year hiatus.
Image: Ian Landsberg/ Independent Newspapers
Telkom delivered solid results in the year to March as its data-centric strategy continues to drive performance, with the telecommunications group reinstating dividend payments after a four-year hiatus.
Group CEO Serame Taukobong said the company's 'strategic vision is translating into exceptional results, demonstrating our unwavering commitment to strengthening our position as the digital backbone of South Africa'.
In its results, issued on Tuesday morning, it said group revenue gained 3.3% to R43 billion thanks to strong growth in mobile service revenue, which was up 10.2%, as well as fibre-related data revenue, up 10%.
The JSE-listed company has been focusing on three key pillars: sales engine optimisation, network excellence, and customer-centric value. 'We will continue to navigate global macro-economic uncertainties and domestic challenges like high unemployment and the need for sustained economic growth to support our connectivity businesses," Taukobong noted.
During the year, it 'prioritised strategic investments in our infrastructure, expanding fibre and 4G/5G coverage to underserved areas while enhancing urban network performance,' said Taukobong. Telkom said it would maintain capital expenditure for future growth within a range of 12% to 15% of revenue.
'Our data-centric strategy continues to be the key driver, enabling us to deliver sustained, impressive performance,' Taukobong said. Mobile and fibre service revenue growth across the group, combined with effective cost efficiency programmes, aided earnings before interest, tax, depreciation, and amortisation gaining by 25.1%.
Telkom Consumer saw mobile service revenue increase by 10.2%, with a 19.5% surge in its mobile data subscriber base to 15.2 million.
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Meanwhile, Openserve delivered fibre-related data revenue growth of 5.9% and maintained what Telkom said was 'a market-leading 50.4% fibre to the home connectivity rate'.
BCX recorded fibre-related data revenue growth of 12.7% and cloud services revenue growth of 5.8%.
'We are pleased to confirm the reinstatement of a dividend, signalling a renewed focus on delivering value to shareholders after a four-year suspension,' said Taukobong. The board declared a final ordinary dividend of 16c per ordinary share and a special dividend of 97.8c per ordinary share for the year. This payout is worth R1.3 billion to shareholders.
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