Telkom says it aims to review its options in mobile as it looks to cap its\u00a0capital expenditure in 2014.<\/p>\n
Telkom\u2019s group interim results for the six months ended September 2013 showed that\u00a0active mobile subscribers increased 6.9% to 1.598 million with a blended ARPU of R58.81.<\/p>\n
Total mobile subscribers increased by 17.4%, to 4.4 million.<\/p>\n
“The mobile business continues to face the challenge of gaining market\u00a0share in a highly competitive market,” it said.<\/p>\n
Mobile revenue increased 55.4% to R926 million, while mobile data revenue rose 50.0% to R303 million.<\/p>\n
However,\u00a0Telkom Mobile showed an EBITDA loss of R773 million over the reporting period.<\/p>\n
Mobile handset and equipment sales revenue increased 386.7%, to R365 million,\u00a0driven by\u00a0higher bulk sales to dealers as well as the sharp increase from Smartphone\u00a0and Tablet sales, Telkom said.<\/p>\n
Group capital expenditure which includes spend on intangible assets, increased by 49.5% to R3.2 billion, from R2.1 billion in 2012,\u00a0and represents 19.6% of group operating revenue (2012: 13.1%).<\/p>\n
Capex on its mobile business was up 56.4% to R815 million.<\/p>\n
“For the 2014 financial year, management has taken a prudent approach to cap its capital expenditure to R6.5 billion while the group reviews its options, particularly in mobile,” Telkom said.<\/p>\n
Mobile sites integrated increased 28.3% to 2,238, with\u00a0871 LTE sites integrated.<\/span><\/span><\/p>\n Telkom Mobile reported a 14.4% rise in prepaid subscribers, while the number of active prepaid subscribers increased from 1,121,967 to 1,283,615.<\/p>\n Active post-paid subscribers however, declined by 15.7% \u2013 down from 373,116 to 314,558.<\/p>\n “Although revenue from our mobile operations increased by 55.4%, mobile voice and subscriber revenue decreased 20.2% and interconnection revenue decreased This was driven by both the decline in the number of post-paid subscribers and lower post-paid ARPU.<\/p>\n Telkom said that the decline in its post-paid subscribers is\u00a0attributable to the expiration of a large number of hybrid contracts as well as the continuation of the debtors clean-up to ensure a better quality customer base.<\/p>\n It pointed out that the hybrid contracts were generating low ARPUs\u00a0and the current base is providing a more sustainable growth base than the prior period.<\/p>\n “We are encouraged by\u00a0the improvement in mobile data revenue which increased 50.0% to R303\u00a0million resulting from an increase in the number of data subscribers and\u00a0data deals and promotions launched during the period.”<\/p>\n “However, we are\u00a0continuing to explore all avenues to de-risk the mobile business,”\u00a0said Sipho Maseko, Group CEO at Telkom.<\/p>\n Telkom earnings improve<\/strong><\/a><\/p>\n Is there space for Cell C and Telkom Mobile?<\/strong><\/a><\/p>\n
\n10.8%,” the group said.<\/p>\nMore on Telkom Mobile<\/h3>\n