South African telecoms operator Telkom has reported group revenue of ZAR6.5 billion (USD511.7 million) for the three months ended 30 June 2015, an increase of 1.7% year-on-year, driven by mobile data turnover and higher fixed line subscription revenue. This was partly offset by the continuing decline in fixed line voice usage, due to mobile substitution, and leased line revenues, as a result of customers migrating to newer and cheaper technologies. ‘Our net revenue for the first quarter of our financial year grew 1.7% in a difficult operating environment during which there were significant pricing pressures,’ commented Sipho Maseko, Telkom Group CEO, adding: ‘We continued to focus on data and mobile revenues, which remain the key drivers of our revenue growth. Our capital expenditure amounted to approximately ZAR730 million, which is 15.3% higher than our capital expenditure for the same period in 2014. The main focus of this investment was on an accelerated fibre rollout and increased investment in our mobile and LTE networks, providing wider coverage and faster connection speeds.’
Telkom said that mobile net revenue jumped by 68.5% to reach approximately ZAR350 million in the first quarter of the firm’s 2016 financial year, attributable to a 68.7% year-on-year rise in mobile data revenue, an increase in wireless subscribers (up 11.7% to 2.143 million) and higher monthly blended ARPU (ZAR82.87 for the three months ended 30 June 2015). ADSL subscribers, meanwhile, saw growth of 6.3% to 1.015 million at the end of June 2015.