COMPANY RESULTS - Telkom suffers R10bn loss amid impairments
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GUEST – Serame Taukobong – Telkom CEO
SA's third-biggest mobile operator Telkom warned it wouldn't pay dividends for a fourth year, believing it prudent to first strengthen its balance sheet after suffering an annual loss of about two-thirds of its market value. Telkom, valued at about R15.7 billion on the JSE, reported a R10 billion loss in the year to end-March - from a profit of R2.6 billion previously. Hefty impairments, restructuring costs and load shedding hit the company. More pleasingly, active mobile subscribers grew 7.8% to about 18.3 million. Revenue grew 0.9% to about R43 billion, driven by almost 14% growth in its IT business. But its wholesale infrastructure business Openserve reported a 26% fall in fixed-line revenue, and a more than 30% fall in legacy data revenue.
SA's third-biggest mobile operator Telkom warned it wouldn't pay dividends for a fourth year, believing it prudent to first strengthen its balance sheet after suffering an annual loss of about two-thirds of its market value. Telkom, valued at about R15.7 billion on the JSE, reported a R10 billion loss in the year to end-March - from a profit of R2.6 billion previously. Hefty impairments, restructuring costs and load shedding hit the company. More pleasingly, active mobile subscribers grew 7.8% to about 18.3 million. Revenue grew 0.9% to about R43 billion, driven by almost 14% growth in its IT business. But its wholesale infrastructure business Openserve reported a 26% fall in fixed-line revenue, and a more than 30% fall in legacy data revenue.
