Telkom South Africa has announced its financial results for the six months ended 30 September 2014 (H1 FY2015), reporting a marginal 0.5% year-on-year decline in operating revenues, which decreased to ZAR15.911 billion (USD1.44 billion), down from ZAR15.989 billion reported in the corresponding period of 2013. The development was attributed to the continuous decline in fixed line voice revenues (down 12% y-o-y) and data leased line revenues (down 21.3%), which was partly offset by 54.4% annual increase in mobile revenues to ZAR348 million at 30 September 2014.
Meanwhile, EBITDA increased by 12.1% to ZAR4.403 billion, while net debt reached ZAR545 million, a 74.4% improvement in the six months to end-September 2014. Further, Telkom recorded a net profit of ZAR1.156 billion, significantly lower than the ZAR2.964 billion reported in 1H FY2014. The slump was partly driven by a ZAR2.173 billion curtailment gain on its Post-Retirement Medical Aid (PRMA) plan, which was generated in H1 FY2014, and the impact of the newly introduced termination tariffs, which reduced net profit by ZAR321 million in the period under review.
In operational terms, the group reported a total of 2.024 million mobile subscribers at end-September 2014, up 26.7% from 1.1.598 million in the year-ago period. Meanwhile, Telkom’s ADSL base grew by 7.4% to 965,046 in the twelve months under review, while fixed access lines dropped to 3.531 million, down by 4.8% y-o-y.