![\"Sipho](\"http:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2012\/04\/Sipho-Maseko.jpg\")
<\/a>Sipho Maseko<\/p><\/div>\n
Group capital expenditure, which includes spend on intangible assets, increased 12% to R6.458 billion (2013: R5.768 million) and representing 19.9% of group operating revenue.<\/p>\n
“Our efforts to turn Telkom around are starting to produce results,”\u00a0Maseko said. “In the past financial year, in line with our guidance to stabilise revenues, we have achieved revenue growth of 1.1% for the year, confirming that we still face significant challenges largely as a result of the sustained pressure on our fixed-line revenues.”<\/p>\n
He noted that operating expenses, excluding depreciation, decreased 2.1% to R18.2
\nbillion, from R18.5 billion in 2013: “a commendable achievement when you
\nconsider that in real terms this translates to an 8.2% reduction in operating expenses,” he said.<\/p>\n
“This can be attributed to lower employee cost, lower bad debts as we improved our credit vetting processes and efficiencies gained on various cost management initiatives including a reduction in marketing expenditure and lower inventory write-offs,” the CEO said.<\/p>\n
Looking ahead, Maseko said that, based on group guidance provided in November 2013, Telkom plans to reinstate the dividend in the 2015 financial year, subject to the
\nfinancial performance, the operating environment, growth opportunities and debt and cash flow levels.<\/p>\n
The board has decided not to declare a dividend in respect of the financial year ended March 2014.<\/p>\n
“Going forward, we expect to see continued pressure on fixed-line voice revenues, intensified by strong competition, a challenging macro-economic environment and effects of regulatory interventions.”<\/p>\n
“Our objective to further stabilise and grow revenue is dependent on effectively positioning our resources to drive value and achieving efficiencies across our operating cost base to improve EBITDA margins,” Maseko said.<\/p>\n
Telkom said it aims to successfully conclude the proposed MTN South Africa and Business Connexion transactions within the current financial year.<\/p>\n
In May, Telkom said it has entered into an agreement to acquire listed ICT group, BCX, in a R2.7 billion cash offer funded from its own cash resources.<\/p>\n
MTN signed an agreement with Telkom in March 2014, which would see it take over financial and operational responsibility for the rollout and operation of Telkom\u2019s radio access network (RAN).<\/p>\n
The two companies entered into a Heads of Agreement (HoA) to enable each party to be able to roam on either party\u2019s network.<\/p>\n
More on Telkom<\/h3>\n
Telkom hits 2009 trading levels<\/strong><\/a><\/p>\n Telkom shares surge 5% on expected earnings<\/strong><\/a><\/p>\n Telkom\u2019s new retrenchment timeline<\/strong><\/a><\/p>\n