Telkom has reports group revenue up 3,8% to R10 668-million for the quarter ended 30 June 2023.
Group EBITDA was down 4,2% to R2 235-million.
Telkom Mobile saw positive growth, with mobile revenue up 5,2% to R5 448-million This comprises a 6,5% increase in mobile service revenue and a 9,9% increase in mobile data revenue.
Mobile data traffic and subscribers were up 25,1% and 6,9% year-on-year (YoY) to 329 petabytes and 18,5-million subscribers, respectively. Mobile broadband customers were up 8,9% to 11,7-million, comprising an increased 63,2% of active mobile customers.
Openserve reports that fixed data new generation revenue growth sustained a 10,6% increase. Fixed data traffic was up 13,3% to 512 petabytes and there was a fibre to the home (FTTH) connectivity rate of 46,5%, with number of homes connected up 24,2%.
BCX revenue up 2.9% driven by IT business revenue growth of 17,5% to R2 068-million.
Swiftnet was commercialised at healthy margins, with revenue up 1,2% and an EBITDA margin of 71,8%.
Serame Taukobong, group CEO of Telkom, comments: Telkom has started the 2024 financial year with good momentum. Group performance was pleasing in the face of rolling power outages (load shedding), muted economic growth, continuing inflationary pressures on consumers and an intensely competitive landscape.”
During the previous calendar year, a multi-party sales process commenced following the board’s approval to affirm and realise the value of Swiftnet through the disposal of the mast and towers business.
Telkom received offers to acquire Swiftnet in its entirety during the last quarter of FY2023. These offers were further refined from shortlisted bidders over recent weeks.
Telkom is currently engaged in discussions with two bidders and will provide updates on the outcome of the process in due course.
Following the legal separation of Openserve into a stand-alone entity effective 1 September 2022, various initiatives were explored with the goal of realising value from this, deemed to be core, wholly-owned Telkom subsidiary.
Telkom conducted a market sounding exercise earlier this year to assess the depth of interest in a minority strategic equity stake in Openserve and received credible expressions of interest from a range of local and international parties.
Once this transition has been concluded, Telkom will consider its further options to realise value, including in relation to the expressions of interest received for Openserve.
Management is also investigating the possible introduction of a strategic equity partner in BCX to enhance scale, growth and capabilities in various growth areas including cloud services and cybersecurity. A process is currently underway to assess the market for potential international and/or local partners and to consider available options in this regard.