Telkom released its latest financial results today (8 June 2012), revealing a challenging year for the company. In the year under review, operating revenue decreased by 0.7% to R33.1bn, operating expenses increased by 6.1% to R31.3bn, and EBITDA was down 8.8% to R8.5bn. Profit before tax was R774m and profit for the year was R179m.
Telkom said in a press statement that it had a tough year cleaning up its books and consolidating its operations.
Presenting Telkom’s annual results in Johannesburg today (8 June 2012), Group CEO Nombulelo Moholi said that they will stay calm, determined and focused on delivering on the promise of their business and their strategy going forward.
“Group financial results for the year under review were not good. We have taken several significant steps towards securing a successful future for Telkom. We began casting the foundation that will allow the group to compete well and build value,” said Moholi.
Moholi said she had spent her first year at the helm of Telkom crafting a strategy that focuses on the group’s core competency, its role in society, and on future growth opportunities.
Going forward, Telkom’s strategic imperatives will be to:
- Lead in data and broadband, and in Fixed Mobile Convergence;
- Grow Telkom Business revenues by diversifying the service portfolio;
- Regain market competitiveness in the consumer market;
- Consolidate Telkom’s position as wholesaler of choice;
- Focus on profitable market segments and services; and
- Enhance operational efficiency.
These were informed by renewing and refining Telkom’s tactical initiatives across key business areas. These are:
- Growing and defending profitable Telkom Business revenues;
- Delivering on the investment in Telkom Mobile;
- Growing and defending profitable revenues in Telkom Consumer Services & Retail; and
- Transforming and upgrading the Telkom network.
“Acceptable financial performance will be driven by the successful execution of our strategy in the next two to three years and productive collaboration with our stakeholders,” said Moholi.
“We are committed to a journey of significant and deliberate steps to build value for all our stakeholders. We are focused on working to secure our future.”