TeleMasters sees headline earnings climb 21%
JSE-listed TeleMasters on Monday reported a 14% rise in revenue to R120.6 million for the year ended June 2017.
The converged telecoms group said that headline earnings per share (HEPS) rose by 21% to 5.85 cents per share, with operating profit up 53% to R4.2 million.
The group declared a dividend per share of 2.00 cents.
“In difficult trading conditions, the revenue growth of 14.4% is pleasing. The average price of voice minutes sold keeps declining and the pressure of a free-market is evident in the widespread lowering of the retail prices on most telecommunication services. This pressure compresses margins,” TeleMasters said.
Cash generated from operations increased by a healthy 158.5% to R7.6 million whilst maintaining capital expenditure. “As an annuity-based business, such investment indicates a healthy future income stream,” it said.
Looking ahead, TeleMasters said that intense competition in the telecommunication market has led to a number of closures and consolidations in the industry. “The expectation is that retail prices offered by market participants will dwindle as new value-added offerings are launched into the market.”
The telco said that its data and broadband services have ‘taken off’ and forms the backbone of its trademarked ‘Future Proof” service that includes data,
voice and customer equipment as a single point of service.
The company said it remains supplier agnostic which means services over multiple fibre and related carrier types with a variety of suitable equipment can be provided.
“The roll-out of optic fibre and WiFi services across business districts is the key to future growth as speedy and reliable connection remain the
drivers for all digital services.”
TeleMasters said a change in the business model will be rolled out in the coming year that should enhance the reach to potential customers, ease cash flow pressures and advance new technology over its base of customers.
“The acceptance rate of digital data and voice services is accelerating and the company is determined to carve out a larger unique niche of satisfied, life-long customers,” TeleMasters said.
Loading ...