Revenue was offset by the decline in the fixed and IT businesses which remain under pressure due to the challenging operating environment and a decline in the fixed business as customers migrate to modern technologies such as fibre and LTE, Telkom said.<\/p>\n
Openserve continued with its growth trajectory in the fibre market increasing homes passed with fibre by 52.7% and homes connected with fibre by 38.4%. “This is in line with its strategy to accelerate the fibre to the home (FTTH) footprint while simultaneously focusing on connecting homes.”<\/p>\n
Telkom said its mobile revenue growth of 6.3% was achieved against the backdrop of an intensely competitive landscape and challenging economic environment. “As the overall macro-economic constraints materialise, the pre-paid surge has slowed as the share of wallet spend has plateaued.”<\/p>\n
The group grew its prepaid customer base by 12% to 14.3 million with ARPU normalising to pre-Covid-19 levels. In the postpaid market, the post-paid base increased by 3.4% to 2.7 million and high levels of ARPUs were maintained at R212.<\/p>\n
Going forward, the group said it expects Telkom Mobile to grow in line with its industry peers. “In addition to the mobile business, we expect Openserve to start growing in the next financial year
\nsupporting topline growth.<\/p>\n
“Given the slowdown in growth in the mobile business and continuous decline in the legacy business, we expect Group revenue to grow at mid-single digit over the medium term. Our sustainable cost management\u00a0 is also expected to deliver mid-single digit EBITDA growth over the same period.”<\/p>\n
Telkom said it is in year two of a three year dividend suspension period. “In the current year, acquisition of spectrum took priority in line with the capital allocation framework principles of prioritising growth,” it said.<\/p>\n
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