Telkom Group CEO Serame Taukobong has confirmed that revenue stood at R21,150 million, down a modest 0.7% from the same period last year.
Telekom announced its interim results for the six months ended September 30, 2022 on Thursday.
He said the group’s earnings before interest, taxes, depreciation and amortization (EBITDA) fell 17.3% to R4,942 million, with the EBITDA margin falling 4.7 percentage points to 23.4%.
The telecom company also announced a 52% drop in total revenue for the six months. In accordance with the 3 year suspension policy, no dividends have been declared for this year.
Direct cost increases
Taukobong explained that direct costs have increased, which is due to higher costs for handsets and equipment.
“While the rest of the operational costs were well managed, the energy costs increased significantly due to the continued load shedding during the period. This resulted in an increased cost base,” he said.
Performance was also boosted by lower exchange rate and market value movements and tax expenses compared to the previous period.
Taukobong said the period over which the results were measured was marked by tough economic conditions. He said the group’s performance has suffered from the sluggish economy, the energy crisis with rolling blackouts and continued fuel price hikes, and the high-yield cycle. He said these factors have severely constrained consumer spending.
However, Taukobong had good news in terms of product and service stats. “We’ve seen good growth in our mobile subscriber base, continued growth trajectory in the fiber market and companies reviving spending on their IT infrastructure,” he said.
The wireless business continued to drive growth at Telekom Consumer. Total mobile revenue increased slightly by 0.5% as the product mix shifted towards longer postpaid contracts.
“We expanded our prepaid market by 10.7% to 15.2 million. In the postpaid market, the postpaid base increased by 11.7% to 2.9 million, while the average revenue per user fell to R206.
“We have refreshed our postpaid wireless broadband portfolio to significantly enhance our value proposition across the capped and unlimited plans. We were rewarded as our mobile broadband subscriber base grew 3.7% to 11 million subscribers,” he said.