Telkom, Vodacom report interim results

20 Nov 2007

Telkom South Africa has reported an 8.3% year-on-year rise in operating revenues for the first half of its financial year to ZAR27.23 billion (USD3.83 billion). An increase in operating expenses, tougher competition and price reductions saw operating profit drop 4.8%, however, to ZAR7.31 billion, while headline earnings per share fell 15.1% to ZAR7.42. The firm says much of its sales growth came from its 50% interest in mobile operator Vodacom, which has also reported interim financial results (see below). Telkom’s fixed access line customer base fell 1.2% between September 2006 and September this year to 4.62 million lines, with the average revenues per fixed access line dropping 0.9% to ZAR2,588. There was a dramatic rise in the number of ADSL broadband internet customers, though, up 76.2% to 335,112.

Meanwhile, South African cellular operator Vodacom, which is a 50:50 venture between Telkom and Vodafone of the UK, says net profit for the six months to the end of September rose 17.5% to ZAR3.7 billion, while sales were up 17.2% at ZAR22.8 billion. Group subscriber numbers increased 22.6% year-on-year to 31.6 million, with 23.3 million of these in its domestic market. More information on Telkom and Vodacom can be found in TeleGeography’s GlobalComms database.

South Africa, Telkom South Africa, Vodacom Group