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During the period, revenue declined by 1,5 percent to R16,1 billion while operating expenses increased 1,6 percent to R15,6 billion.
The company’s basic earnings per share decreased 64,5 percent to 30,2 cents as headline earnings per share from continuing operations decreased by 80,6 percent to 37,2 cents, largely due to the impact of the provision for the penalty handed down by the Competition Tribunal, higher employee expenses due to annual salary increases and lower fixed-line revenue.
Despite the disappointing set of results, outgoing Group CEO Nombulelo Moholi remains confident of the company’s turnaround.
“Telkom is engaged in constructive dialogue with its key stakeholders to chart a successful way forward.
“While we anticipate government providing an understanding of its policy direction, we remain focused on achieving our current business strategy,” said Moholi.
During the company’s recent annual general meeting, where four non-executive directors were not re-elected to the board by a majority of shareholders, the board has been reconstituted with the appointments of Jabulane Albert Mabuza, Kholeka Mzondeki and Leslie Maasdorp.
The board has also elected Mr Mabuza as the chairman. The next step in the process will be the appointment of further directors and board committees.
Moholi said the company’s short term priorities were to ensure management stability and to focus on business priorities.
It was also essential to ensure that customer service was not impacted by recent events at the corporate level, and that ongoing constructive dialogue with minority and majority shareholders continues.
Meanwhile, there were also several areas of improvement recorded in the six months under review.
These include ADSL subscribers increasing 5,8 percent to 841 831. Calling plan subscribers increased 5,7 percent to 843 491 and managed data network sites increased 8,3 percent to 40 284.
Active mobile subscribers increased to about 1,5 million.
Mobile business revenue increased by 198,3 percent, largely as a result of increased ARPUs and the number of revenue generating subscribers.
Telkom Business has improved sales performance and was tapping into a healthy pipeline of deals.
The company said the consumer division’s roll out of 40 Telkom Express stores and 30 third party retail channels is on track.
Telkom Mobile’s prepaid subscriber increased 52,4 percent to 1,1 million since September 2011.
A significant milestone was achieved by the Wholesale and Networks division with the replacement of the first TDM access switch with an all-IP concentrator at Craighall North exchange.
The division experienced strong growth in services provided to its wholesale customers.
Moholi said Telkom was determined to strengthen its competitiveness, improve its operating model and manage its financial resources carefully.
“We are taking action to ensure that we execute our strategy to build a stable, healthy company going forward.
“In line with this commitment, engagement with government and all other stakeholders is critical to charting a successful way forward,” Moholi said. — CAJ News.
Online Reporter