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Telkom’s latest financial results show that the company is struggling in the fixed and commercial segments, while its mobile operations are doing well.
Telkom’s interim results for the six months ending September 30, 2020 show that its revenues decreased 0.4% to R21.4 billion.
This decrease in revenues was mainly due to the poor performance of its fixed and information technology units.
Fixed revenue decreased from R10.4 billion to R8.5 billion, while IT revenue decreased from R3.4 billion to R2.9 billion.
BCX and SMB posted drops of 11.3% and 25% respectively, driven by a drop in corporate fixed voice revenues.
These decreases were offset by the strong performance of its mobile unit, where revenues increased from R7.1 billion to R9.5 billion.
Telkom’s mobile subscriber base increased 19% to 13.7 million with net adds of 2.2 million.
Another strong player was Gyro, whose mast and tower revenues increased 7.7% to R628 million despite the slowdown in the permitting and construction process.
Telkom CEO Sipho Maseko said they are satisfied with a strong set of results in a year in which growth was challenging due to the COVID-19 pandemic that hit the South African economy.
“These results reflect the quality and dedication of our people and business partners,” said Maseko.
Telkom in red and black
The following table provides an overview of Telkom’s interim results for the six months ending September 30, 2020.
| Financial results | |||
| Component | September 2019 | September 2020 | Change |
| Total income | 21,479 | 21,396 | -0.4% |
| Fixed income | 10,408 | 8,513 | -18.2% |
| Mobile income | 7,073 | 9,453 | + 33.7% |
| Information technology | 3,445 | 2,909 | -15.6% |
| Trudon | 233 | 165 | -29.2% |
| Gyro | 321 | 356 | + 10.9% |
| Fixed subscribers | |||
| Fixed broadband subscribers | 781,255 | 637,884 | -18.4% |
| Closest subscribers | 564,045 | 343,738 | -39.1% |
| Internet access all subscribers | 476,763 | 362,700 | -23.9% |
| Fixed access lines | 1,975,000 | 1,432,000 | -27.5% |
| Managed data network sites | 41,655 | 36,412 | -12.6% |
| Mobile subscribers | |||
| Mobile broadband subscribers | 7,822,178 | 9,643,969 | + 23.3% |
| Mobile ARPU (rand) | 82.31 | 112.55 | + 36.7% |
| Traffic volumes | |||
| Fixed Broadband Data Volumes (Petabytes) | 558 | 723 | + 29.6% |
| Mobile broadband data volumes (petabytes) | 265 | 479 | + 80.8% |
| Total fixed line traffic (millions of minutes) | 4,708 | 3,352 | -28.8% |
| Group employees | |||
| Telkom company employees | 9,544 | 7,234 | -24.2% |
| BCX group employees | 5,374 | 5,232 | -2.6% |
| Yellow Pages Employees | 184 | 112 | -39.1% |
| Gyro Employees | 95 | 99 | + 4.2% |
Now Read: Telkom Landline Blood Bath
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