Telkom has published its provisional annual results for the year ended March 2019, showing a sharp increase in mobile subscribers.
The group saw mobile service revenue increase by 58.3% – underpinned by its popular broadband-focused deals.
“The significant growth in mobile service revenue was supported by an 85.9% growth in active subscribers to 9.7 million, as our affordable broadband-led proposition continues to resonate with customers,” said group CEO, Sipho Maseko.
“Despite adding 4.5 million subscribers in the year, our blended average revenue per user (ARPU) was stable at R100.”
Maseko said that pre-paid subscribers more than doubled compared to the prior year, increasing by 109.3% to 7.8 million.
“Our pre-paid proposition continues to attract good quality subscribers demonstrated by a significant increase in pre-paid ARPU of 19.8% to R71,” he said.
Post-paid (contract) subscribers increased by 26.8%, with net additions of approximately 396,000 to reach 1.9 million, with an ARPU of R186.
Key salient features:
- Group operating revenue up 5.3% to R41.8 billion;
- Headline earnings per share (HEPS) up 22.6% to 722.0 cents;
- Earnings before interest, tax, depreciation and amortisation (EBITDA) up 8.5% to R11.3 billion;
- Adjusted free cash flow up 12.9% to R534 million;
- Final ordinary share dividend of 249 cents taking the annual dividend to 362 cents, an increase of 2.0% year on year.