Telkom has posted group revenue of 3,5% year on year to R10 618-million, mainly driven by the mobile business, for the quarter ended 30 June 2021.
Mobile data revenue grew 11,1%, supported by growth in mobile broadband customers; and mobile broadband customers up 30,9% to 10,5-million, representing 65,6% of active customers. Active mobile customers up 36,3% year on year to 16,1-million.
During the quarter, fixed data connectivity revenue grew 1,2% driven by increased demand in fixed broadband usage. Fibre to the home grew by 32,2% to 306 837, representing FTTH connectivity rate of 50,1%.
The number of Masts and Towers external leases increased 6,9% year on year to 8 685.
Overall, group EBITDA increased 7,3% to R2 751-million with an EBITDA margin expansion of 0,9 ppts to 25,9%.
Group CEO Sipho Maseko says that, despite the South African economy gradually opening up, customers remain under severe financial pressure due to loss of jobs, reduced income and liquidation of small businesses.
“We witnessed a continuing change in consumer behavior in the postpaid consumer market. As customers seek to manage their spend, we saw a reluctance to renew postpaid contracts with some customers opting to switch from postpaid to prepaid propositions.
“In the Enterprise segment, investment lags the economy as the country grapples with the Covid-19 third wave with many SMEs having to close their businesses in these challenging times.”
Telkom’s Mobile business has sustained its growth, with post-paid ARPU (average revenue per user) holding steady at around R220. The Masts and Tower portfolio also continued to grow and expanded its footprint.
“We have also seen a recovery in the Converged Communication business in BCX with this business recording growth while the IT business remains under pressure,” Maseko adds.
“For the first time since the technology migration at Openserve, the number of homes connected with fibre surpassed the number of homes connected with copper. Although the overall fixed business is
still declining, we noted positive recovery in the fixed voice usage and fixed data connectivity revenue compared to the prior year boosting the performance of Openserve.
“This has been enabled by our ongoing capital investment and broadband-led strategy which underpins the evolution of our business. Today, the new revenue streams, being mobile, IT, fibre and masts and towers contribute more than 70% of Group revenue and remain the driver of the topline growth and the profitability of the business,” he adds.