Telkom has released its yearly financial results for the period ending 31st March 2019.
The good news is that operating revenue is up from R39.6 billion for financial year 2018 to R41.7 billion for financial year 2019, an increase of 5.3 percent.
Drilling down into the numbers, mobile service revenue is on the up, and quite steadily. The group has seen mobile service revenue climb by 58.3 percent to R8.1 billion in the last financial year.
This appears to be a result of Telkom welcoming 4.5 million additional subscribers to its network, a growth of 85.9 percent over the year. The network currently boasts 9.7 million mobile subscribers.
Telkom says that average revenue per user remained stable at R100.
Unfortunately, fixed service revenue dipped in the same period. Overall, fixed service revenue fell 8.8 percent to R21.1 billion for the financial year.
Telkom Group chief executive officer, Sipho Maseko says this decline is in-line with global trends.
“In line with global trends, our fixed business remains under pressure. With that in mind, investing in technologies to drive future revenue streams necessitates the evolution of the group’s skill base and acquiring various capabilities,” Maseko said in a media statement.
Elsewhere in the Telkom Group, Openserve is working to recover its revenue position following its pricing transformation exercise.
However, in spite of the price reductions from Openserve over the last few years, the division has limited revenue decline to 3.3 percent.
It’s clear then that mobile has become a vital part of Telkom’s business with South Africans flocking to the network.
As for the other areas of the business that are lagging behind, Telkom has said it will continue to invest in technologies and the network so as to remain at the forefront of change.