Telkom returns to dividend payouts

Telkom on Monday reported a 3.1% rise in net revenue for the year ended March 2015, to R26 billion, with total group revenue at R31.7 billion.

Headline earnings per share, excluding the one‐off items, increased 60% to 532.5 cents, while EBITDA rose by 15.1% to R9 billion.

The group reported a final dividend of 215 cents per share and a special dividend of 30 cents per share.

“Our strong financial position and healthy cash balances warrants a special dividend of 30 cents per share as we reintroduce dividend payments for the first time since 2011,” said CEO Sipho Meseko.

“The total dividend approved by the board is therefore 245 cents per share,” he said.

Group operating revenue increased 1.2% to R31.675 billion (March 2014: R31.288 billion), driven by higher mobile voice and data revenue, higher IT Business Services revenue and higher equipment sales.

Active mobile subscribers improved 21.2% to 2.187 million, from 1.8 million before, with post‐paid subscribers up 52% to 579,125.

Mobile data revenue increased 50.6% to R988 million, the group said.

Telkom highlighted a 19.5% rise in average revenue per user, to R75.05, from R62.79 before.

Mobile voice and subscriber revenue increased 46% to R717 million (March 2014: R491 million).

Fixed‐line voice usage revenue continued its downward trend, decreasing 13,5% to R6.867 billion, it said.

Mobile capital expenditure decreased 64.8% to R481 million (March 2014: R1.368 billion), due to the shift to a more concentrated rollout in major metropolitan areas.

“Our actions have thus far delivered results,” said Maseko of the group’s turnaround strategy, “but we need to become more efficient.

“We are reviewing our current operating model. A major part of this review
is looking at a deep functional separation between our wholesale and retail
businesses,” he said.

Maseko said he expects Telkom to launch an infrastructure business unit which will
be accountable for network deployment and network efficiency.

“For this operating model to succeed, we must have an efficient and high ‐ performing network. We will updatethe market regarding our plans during the third quarter of the calendar year.”

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