{"id":14918,"date":"2012-06-12T23:07:51","date_gmt":"2012-06-12T21:07:51","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=14918"},"modified":"2012-06-13T09:52:00","modified_gmt":"2012-06-13T07:52:00","slug":"telkom-performance-to-get-worse","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/telecommunications\/14918\/telkom-performance-to-get-worse\/","title":{"rendered":"Telkom performance to get worse?"},"content":{"rendered":"

Telkom<\/a> CEO Nombulelo \u201cPinky\u201d Moholi<\/a> admits that the group\u2019s \u201cperformance may get worse before it gets better.\u201d<\/p>\n

On Friday (8 June 2012), Telkom reported a marginal decline in operating revenue to R33.1 billion,\u00a0for the year ended March 2012.<\/p>\n

Headline profit for the year fell 32.8% to R1.658 billion, while profit after tax for the year declined 93% to R179 million.<\/p>\n

Earnings before interest, taxes, depreciation, and amortization (EBITDA)<\/a> was R8.5 billion, a decline of 8.8% ,and group EBITDA margin decreased to 25.8% from 28.1%.<\/p>\n

Telkom did not declare a dividend, saying that it would use available cash to plough back into the business.<\/p>\n

Moholi said that management in the past had not delivered on its promises. \u201cWe made some investments we should not have made\u2026our losses in Nigeria were embarrassing,\u201d Moholi said of its mega loss making unit Multi-Links.<\/p>\n

\u201cWe remain calm, we remain focussed on our strategy, and we are determined to succeed,\u201d the company lead said highlighting a strategy of mobile and data moving ahead.<\/p>\n

Chief financial officer of Telkom SA, Jacques Schindehutte<\/a> said that people should stop thinking about mobile and fixed line in isolation, stressing that the two offerings as a combination would see Telkom stand out from its competitors.<\/p>\n

\u201cTo think that we can compete on price and voice (mobile) is only a race we can lose,” said\u00a0 Schindehutte. The CFO added that Telkom could only win the race by building a business with 3G<\/a> and 4G<\/a> networks. \u201cWe are positioning ourselves to compete in the data world.\u201d<\/p>\n

\u201cThere are dark clouds on the horizon,\u201d Schindehutte said, highlighting Competition Commission issues along with aggressive competition in the mobile space. He added that the drain from its legacy assets had accelerated in the reporting period, and would likely continue to be a burden \u201cfor some time\u201d.<\/p>\n

Related articles<\/strong><\/p>\n

Telkom plans to lead in data and broadband<\/a><\/strong><\/p>\n

Telkom\u2019s fixed line numbers lowest since 1996<\/strong><\/a><\/p>\n

Telkom reports 33% fall in headline profit<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Telkom CEO Nombulelo \u201cPinky\u201d Moholi admits that the group\u2019s \u201cperformance may get worse before it gets better.\u201d<\/p>\n","protected":false},"author":9,"featured_media":4802,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34,21],"tags":[243,26,1079,2198,65],"class_list":["post-14918","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mobile","category-telecommunications","tag-data","tag-headline","tag-jacques-schindehutte","tag-nombulelo-moholi","tag-telkom"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/14918","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=14918"}],"version-history":[{"count":9,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/14918\/revisions"}],"predecessor-version":[{"id":15236,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/14918\/revisions\/15236"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/4802"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=14918"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=14918"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=14918"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}