Revenues rise, profits fall at Telkom

17 Nov 2008

Telkom South Africa has seen revenues for the six months to end-September climb 9.8% over the same period last year to ZAR29.9 billion (USD3.82 billion). EBITDA dropped 2.8% to ZAR10.0 billion, while operating profit was down 9.3% at ZAR6.7 billion and net profit fell from ZAR3.7 billion to ZAR3.62 billion. The fixed line division reported a 2.8% rise in sales to ZAR16.6 billion, with data revenues up 12% at ZAR4.5 billion. Telkom claimed more than 490,000 ADSL internet customers at end-September, up 46.7% year-on-year.

Telkom is in the process of offloading its 50% stake in cellular subsidiary Vodacom, with the UK’s Vodafone Group agreeing to pay ZAR22.5 billion to raise its own interest from 50% to 65%. The unit said first-half profit was up 2.7% at ZAR3.69 million, with growth in subscriber numbers offsetting a 15% increase in operating expenses. Customer numbers were up 13% year-on-year to reach 35.7 million at end-September. Vodacom CEO Pieter Uys says the firm is looking to reposition itself as a full service provider across the whole of Africa.

South Africa, Telkom South Africa, Vodacom Group