Telkom South Africa has reported a 7.8% drop in net profit for its financial year to the end of March as gains from its mobile operations were cancelled out by higher operating costs. Net profit for the year fell to ZAR7.98 billion (USD1.01 billion), from ZAR8.65 billion in 2006/07, though revenues rose 9% to ZAR56.87 billion. Overall sales were boosted by a 17% jump in revenues at Telkom’s 50%-owned cellular subsidiary Vodacom; sales at its fixed line unit grew just 0.7% year-on-year. Telkom is currently studying the possible sale of its stake in Vodacom and is also considering a buy-out offer from a group of South African firms led by local businessman and politician Tokyo Sexwale.
Separately, Vodacom published its own full-year financial results, with net income up 23% to ZAR7.81 billion, while sales were up 17.1% at ZAR48.2 billion, boosted by a 49.7% increase in data revenue. Vodacom had 34 million subscribers at the end of March, up 12.7% in twelve months, with 24.8 million in South Africa and the remainder at its operations in Democratic Republic of Congo, Lesotho, Mozambique and Tanzania.