Telkom SA reports 47.7% surge in mobile subscriptions in FY2017

5 Jun 2017

South African telecoms operator Telkom has reported group operating revenue of ZAR40.970 billion (USD3.18 billion) for the twelve months ended 31 March 2017 (FY2017), an increase of 9.8% year-on-year from ZAR37.325 billion, driven by mobile voice and subscriptions. This was partly offset by the continuing decline in fixed line voice usage (domestic and international), due to mobile substitution, and lower interconnection revenues. EBITDA for the twelve-month period, however, decreased marginally to ZAR10.941 billion, down 0.3% from ZAR10.969 billion in FY2016, while profit grew 66% y-o-y to ZAR3.854 million (ZAR2.321 billion previously).

Telkom said that mobile service revenue jumped by 38.4% to reach approximately ZAR3.498 billion in the firm’s 2017 financial year, attributable to a 49.6% y-o-y rise in mobile data revenue, and an increase in wireless subscribers (up 47.7% to 3.998 million) and mobile broadband subscribers (up 44.6% to 2.638 million). ADSL subscribers, however, decreased 2.3% to 1.004 million at the end of March 2017, down from 1.028 million twelve months prior. Group capital expenditure, which includes spending on intangible assets, increased 43.3% to ZAR8.654 million (ZAR6.040 million at 31 March 2017) mainly as a result of an acceleration of fibre and LTE rollouts. As a result, Telkom’s wholesale division Openserve passed 2.2 million premises with fibre-optics by end-March 2017, while the company reported that a total of 1.677 million sites supported LTE technology (1.448 million at end-March 2016).

South Africa, Telkom South Africa