Telkom revenue jumps 10.3%

Africa’s largest telco, Telkom South Africa, has reported a 10.3% increase in operating revenue for the year ended 31 March 2006 to ZAR47.62 billion (USD7.19 billion). Operating profit climbed 30.3% to ZAR14.68 billion while EBITDA margin increased from 40.7% to 43.2%, mainly due to fixed line data revenue growth, lower fixed line employee costs as a result of workforce reduction and a consistent mobile business EBITDA margin of 34.7%. Earnings per share rose to 1,740.5 cents from 1,274 cents the previous year, within the company’s own forecast for 30% to 40% growth. Cash-flushed Telkom failed to deliver on plans to buy an IT company to beef up its data business and to expand outside South Africa, but said it would pay an annual dividend of 500 cents and a special dividend of 400 cents, the same as last financial year but just below analyst expectations. It will also buy back shares worth ZAR2 billion this financial year.