Telkom mobile subscribers surge 36%
Telkom on Friday published its group interim results for the six months ended September 2017, showing strong growth in its mobile division.
Mobile service revenue recorded a 43.2% growth to R2.28 billion, supported by a 35.9% increase in the active subscriber base to 4.4 million with a blended average revenue per user (ARPU) stable at R92.
This, the group said, was underpinned by an investment in its network of R1.2 billion, “extension of our distribution channels, increased store footprint and innovative data-led product suite launched in the prior year and now gaining traction”.
Postpaid subscribers increased 36.3% to 1.3 million, with an ARPU of approximately R184. Prepaid subscribers grew 35.7% to 3 million, with ARPU holding steady at R53.
“Our mobile broadband-led strategy delivered a strong performance with mobile data revenue increasing 59.8% to R1.627 billion supported by 108% growth in data usage. The refarming of our 1800 MHz spectrum is paying dividends with smartphone subscribers increasing by 28.4% to 2.1 million.
“Our fixed wireless LTE Smart Broadband offerings continue to do well with an increase of 72% in LTE subscribers, driven by our popular “Deal of the Month” and an improved quality and footprint expansion of our 2300 MHz LTE network,” the group said.
Overall, Telkom reported a marginal decline (0.6%) in group interim operating revenue for the period ended September 2017, to R20.10 billion. Net operating revenue was down 0.9% to R15.79 billion.
Capital expenditure improved 9.2% to R3.97 billion, while headline earnings per share was down 7.4% to 303.9 cents per share.
The board declared an interim dividend of 118 cents per share.
Results from the mobile division:
- Mobile broadband subscribers – Up 25.2% to 2,848,568
- Active mobile subscribers – Up 35.9% to 4,364,508
- Prepaid subscribers – 3,035,173
- Postpaid subscribers – 1,329,335
- Smartphone subscribers – Up 28.4% to 2,060,645
- ARPU – Up 4.1% to R92.46
Read: Telkom interim revenue slides on political and economic uncertainty
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