Telkom’s numbers in black and red
Telkom on Friday (8 June) reported a decline in operating revenue to R33.1 billion, for the year ended March 2012. Headline profit for the year fell 32.8% to R1.658 billion, while profit after tax for the year declined 93% to R179 million.
The group decided against a dividend declaration in respect of the financial year ended 31 March 2012.
“Telkom faces many challenges at the moment but we will stay calm, determined and focused on delivering on the promise of our business and strategy going forward,” said CEO Nombulelo Moholi.
Voice revenues declined 6.5% to R12.835 billion as a result of lower minutes of use due to mobile substitution and, to a lesser extent, lower tariffs.
Total data revenue decreased 1.7% to R10.517 billion as a result of income generated from the Soccer World Cup included in the previous year. Excluding the revenue relating to the 2010 Soccer World Cup, data revenue increased 1.6%.
Some of the highlights of Telkom’s results for the year ended March 2012 include:
- ADSL subscribers increased 10.0% to 827,091.
- Calling plan subscribers increased 4.6% to 819,019.
- Managed data network sites increased 13.9% to 38,902.
- Active mobile subscribers increased 213.2% to 1,483,401 with a blended ARPU of R68.86.
- Operating revenue down 0.7% to R33.1 billion.
- Fixed-line employee expenses decreased 15.0% to R6.6 billion.
- Mobile EBITDA loss of R2.2 billion after elimination.
- Group EBITDA margin decreased to 25.8% from 28.1%.
- Fixed-line EBITDA margin increased from 36.8% to 38.6%.
- Basic earnings per share decreased 97.8% to 10.4 cents per share.
- Headline earnings per share decreased 33.0% to 324.7 cents.
- Free cash flow generated of R2.1 billion (2011: R2.2 billion).
- Net debt to EBITDA remains 0.5x.
As mentioned by Moholi, Telkom faces many challenges including a continued decline in fixed line subscribers, lower voice revenues and lower average revenue per user in their mobile division.
The following table provides an overview of the company’s performance over the last twelve months.
| Service | March 2011 | March 2012 | Growth |
| Telkom South Africa | |||
| ADSL subscribers | 751,625 | 827,091 | 10.0 |
| Calling plan subscribers | 783,193 | 819,019 | 4.6 |
| –Closer subscribers | 753,951 | 787,117 | 4.4 |
| –Supreme call subscribers | 29,242 | 31,902 | 9.1 |
| WiMAX subscribers | 3,199 | 3,381 | 5.7 |
| Internet all access subscribers | 543,316 | 523,057 | -3.7% |
| Fixed access lines (’000) | 4,152 | 3,995 | -3.8% |
| –Post-paid – PSTN | 2,552 | 2,499 | -2.1% |
| –Post-paid – ISDN channels | 772 | 767 | -0.6% |
| –Pre-paid | 703 | 623 | -11.4% |
| –Payphones | 125 | 106 | -15.2% |
| Fixed-line penetration rate (%) | 8.3 | 7.9 | – |
| Revenue per fixed access line (ZAR) | 4,863 | 4,865 | – |
| Total fixed-line traffic (millions of minutes) | 20,545 | 19,372 | -5.7% |
| –Local | 5,563 | 4,513 | -18.9% |
| –Long distance | 2,806 | 2,683 | -4.4% |
| –Fixed-to-mobile | 3,563 | 3,785 | 6.2 |
| –Fixed-to-fixed | 104 | 164 | 57.7 |
| –International outgoing | 537 | 360 | -33.0% |
| –Subscription based calling plans | 3,988 | 3,636 | -8.8% |
| –Interconnection | 3,984 | 4,231 | 6.2 |
| —-Mobile domestic | 1,919 | 1,945 | 1.4 |
| —-Mobile international | 134 | 432 | 222.4 |
| —-Fixed | 951 | 1,055 | 10.9 |
| —-International | 980 | 799 | -18.5% |
| Managed data network sites | 34,163 | 38,902 | 13.9 |
| Telkom Company employees | 22,884 | 20,939 | -8.5% |
| Fixed access lines per employee | 182 | 191 | 4.9 |
| Telkom Mobile | |||
| Total subscribers | 1,199,596 | 3,053,393 | 154.5 |
| Active Subscribers | 473,604 | 1,483,401 | 213.2 |
| –Pre-paid | 440,775 | 1,039,448 | 135.8 |
| –Post-paid | 32,829 | 443,953 | 1,252.3 |
| Base stations constructed | 970 | 1,782 | 83.7 |
| Employees | 228 | 355 | 55.7 |
| ARPU (Rand) | 22.60 | 68.86 | 204.7 |
| –Pre-paid | 15.86 | 20.89 | 31.7 |
| –Post-paid | 238.57 | 206.83 | -13.3% |
| Churn % – Pre-paid | – | 58.9 | – |
| Other International | |||
| iWayAfrica | |||
| –Active subscribers | 25,184 | 22,386 | -11.1% |
| –Employees | 517 | 479 | -7.4% |
| –Customer per employee | 49 | 47 | -4.1% |
| Other South African | |||
| Trudon employees | 520 | 520 | – |
| Swiftnet employees | 107 | 107 | – |
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