{"id":27207,"date":"2012-11-26T10:00:48","date_gmt":"2012-11-26T08:00:48","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=27207"},"modified":"2012-11-26T10:04:55","modified_gmt":"2012-11-26T08:04:55","slug":"telkom-chair-has-instilled-confidence-pic","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/telecommunications\/27207\/telkom-chair-has-instilled-confidence-pic\/","title":{"rendered":"Telkom chair has instilled confidence: PIC"},"content":{"rendered":"

The Public Investment Corporation<\/a> (PIC) says that newly appointed chairman of Telkom,\u00a0Jabulane Albert Mabuza<\/a>, has\u00a0instilled confidence following his strong worded comments regarding the conflict of interests between stakeholders.<\/p>\n

Telkom<\/a>\u00a0appointed\u00a0Jabulane Albert Mabuza<\/a>\u00a0as chairman on 16 November. He\u00a0was previously an MD of Southern Sun Gaming, GCEO of\u00a0Tsogo Sun<\/a>\u00a0and chairman of the Board of South African Tourism.<\/p>\n

Analysts have expressed concern over government\u2019s increasing role in the running of Telkom in recent months.<\/p>\n

While government, through cabinet, is\u00a0expected\u00a0to announce a number of\u00a0turnaround\u00a0options available to the group before March next year,\u00a0Mabuza told a media gathering that a\u00a0shareholder could not set strategy for the company.<\/p>\n

“The day shareholders give you a strategy, they may as well come and run the business,” he told Business Day.<\/p>\n

“The government continues to be responsible for policy, but the strategy of Telkom rests with the board of Telkom.”<\/p>\n

Government is Telkom\u2019s largest shareholder with a 39.8% stake, while state-owned financial services firm,\u00a0Public Investment Corporation<\/a>\u00a0owns 10.9% in the telecommunications group.<\/p>\n

Cabinet, along with the Department of Communications, views Telkom as a strategic asset which will help, among other things, to ensure of\u00a0broadband penetration in SA to 100% by 2020.<\/p>\n

Communications minister Dina Pule was earlier this year tasked with researching and presenting to cabinet, several potential strategic options for Telkom.<\/p>\n

“That solution must be underpinned by the creation of a balance between contributing to delivering the socio-economic development objectives of this country whilst simultaneously facilitating a fruitful and commercially viable existence of Telkom,” Pule said in a statement.<\/p>\n

The PIC expressed its\u00a0satisfaction\u00a0with the appointment of Mabuza.<\/p>\n

\u201cThe newly appointed chairman\u2019s initial engagement with the media has instilled confidence in that he has highlighted the need to resolve the perceived conflict of interests from a minority shareholders\u2019 point of view, which is policy development (government) and the strategy function (management and the board) within the group,” said\u00a0Maqhawe Dlamini,\u00a0GM equities at PIC.<\/p>\n

“Recognising the problem is a giant leap towards a viable solution, we believe,\u201d\u00a0Dlamini said.<\/p>\n

Telkom financials<\/strong><\/p>\n

On Monday 19 November, Telkom recorded a 48.9% drop in group profit before tax of R547 million for the six months ended September 2012.<\/p>\n

The group reported a marginal decline in revenue for the six months ended September 2012, but an 80.6% decline in headline earnings per share to 37.2 cents.<\/p>\n

Mobile revenue increased 198.3% to R898 million, while 8ta reported an ebitda loss of R587 million, down from R1.066 billion before.<\/p>\n

Telkom highlighted active mobile subscribers of 1.495 million, a 2.2% market share in SA (0.9% September 2011), with a blended ARPU of R68.62.<\/p>\n

\u201cThe Telkom results are a reflection of the challenges the business is facing, that call for a rethink of its strategy. The fixed line business continues to be pressured, data not impressive and a lot of cash is still being spent on the mobile business,”\u00a0Dlamini said.<\/p>\n

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

Telkom to see massive strategy shift<\/strong><\/a><\/p>\n

Telkom appoints chairman<\/strong><\/a><\/p>\n

It will get worse: Telkom CEO<\/strong><\/a><\/p>\n

No Cell C deal on the table: Telkom CEO<\/a><\/strong><\/p>\n

Telkom earnings dive 80.6%<\/a><\/strong><\/p>\n

Telkom value shrinks R60bn in 4 years<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The PIC says that new Telkom chairman, Jabulane Albert Mabuza, has instilled confidence following his strong worded comments on the conflict of interests between stakeholders.<\/p>\n","protected":false},"author":9,"featured_media":26584,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[1083,26,2994,2996,4679,65,4680],"class_list":["post-27207","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-telecommunications","tag-dina-pule","tag-headline","tag-pic","tag-public-investment-corporation","tag-southern-sun","tag-telkom","tag-tsogo-sun"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/27207","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=27207"}],"version-history":[{"count":12,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/27207\/revisions"}],"predecessor-version":[{"id":27285,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/27207\/revisions\/27285"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/26584"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=27207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=27207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=27207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}