Telkom has seen a slight jump in revenue amid better internal and external energy supply for the company. <\/p>\n\n\n\n
\u201cTelkom had a good start to the financial year with a pleasing performance on the top line benefiting from our data-led strategy and compelling value propositions,” said Group CEO Serame Taukobong in a trading update for the quarter ending 30 June 2024 (Q1 2024). <\/p>\n\n\n\n
“Our next-generation revenue (NGN) streams continued their positive momentum and grew by R576 million, an increase of 7.0%. NGN revenues now comprise 80.7% of Group revenue.” <\/p>\n\n\n\n
Group revenue grew within guidance by 3.9% to R10.9 billion, driven by demand for its NGN offerings. <\/p>\n\n\n\n
Key contributors to strong NGN growth included Mobile service revenue growth of 9.5%, fixed data NGN revenue growth of 7.1% and information technology revenue growth of 10.3%. <\/p>\n\n\n\n
The group also saw continued momentum in demand for data traffic and mobile, with fixed traffic growing 25.9% and 33.0%, respectively. <\/p>\n\n\n\n
Mobile subscribers advanced by 14.6% and surpassed the 21 million mark. <\/p>\n\n\n\n
Home connected with fibre grew by strong double digits, at 19.5%. <\/p>\n\n\n\n
“These key performance drivers propelled NGN revenue growth, supported by reduced direct costs
resulting from ongoing cost optimisation projects,” said Telkom.<\/p>\n\n\n\n
“This led to EBITDA growth of 24.1%, advancing EBITDA to R2,778 million with the Group EBITDA margin improving to 25.5%, also benefiting from a stabilised electricity supply in South Africa during the quarter<\/strong>.”<\/p>\n\n\n\n In addition to its network consolidation and implications strategy, Openserve was committed to executing an improved green energy mix through the deployment of lithium-ion batteries and solar energy products<\/strong> alongside an improved diesel delivery model. <\/p>\n\n\n\n These initiatives, alongside upgrades of technologies and infrastructure at office locations, improved the stability of the electricity grid, resulting in a decrease of 84.6% (R128 million) in diesel spending to R23 million<\/strong> over the quarter. <\/p>\n\n\n\n The group’s key financials over the quarter are as follows: <\/p>\n\n\n\n Outlook <\/strong><\/p>\n\n\n\n The group received shareholder approval to sell its masts and towers business, which is housed in Swiftnet, to a consortium managed by Actis LLP for R6.75 billion in May. <\/p>\n\n\n\n The Competition Commission recommends that the transaction be approved, and regulatory approvals are needed from the Competition Tribunal and the Independent Communications Authority of South Africa (ICASA). <\/p>\n\n\n\n The group also raised funds by means of a public bond action in the debt capital markets and issued two bond instruments with 3-year and 5-year tenors, raising R345 million and R405 million, respectively.<\/p>\n\n\n\n The R750 million is set to refinance maturing debt and address upcoming maturities in FY2025. <\/p>\n\n\n\n However, the group is still not out of the woods in its legal fight with the Presidency and the Special Investigating Unit. <\/p>\n\n\n\n In July 2023, the Pretoria High Court handed down a judgement setting aside a Presidential Proclamation, which gave the SIU authority to investigate various historical matters, including Telkom’s contracting for network and advisory services and the disposal of former Telkom subsidiaries. <\/p>\n\n\n\n The matter is currently pending before the Supreme Court of Appeal. <\/p>\n\n\n\n\n
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