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Telkom Boosts Performance by Upgrading Networks
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Telkom Upgrades Networks: Telkom has released a trading report for the quarter ended 30 June 2024.
The report reveals that reduced load-shedding costs significantly boosted earnings before interest, tax, depreciation, and amortization (EBITDA).
Telkom Upgrades Networks
Telkom Consumer recorded a 2.6% increase in revenue, reaching R6,589 million for the first quarter ended 30 June.
This was coupled with EBITDA margin growth of 3.6 percentage points year-on-year for Telkom Consumer, and 6.0 percentage points year-on-year for Telkom Mobile.
This improvement is attributed to Telkom’s data-centric approach, driven by both the Mobile business and the expansion of our fiber offerings.
Telkom said, “This growth was fueled by our continuous delivery of innovative and value-oriented offerings, significantly boosting data consumption.”
“Consumers increasingly sought value through our personalized pricing platform, Mo’Nice, which now accounts for 35.4% of total service revenue.”
Telkom Boasts About Performances and Upgraded Network
The company went on to boast about its accomplishments and performance.
“Our performance was further bolstered by the strengthening of our subscriber base, which grew by 14.6% to 21.2 million total mobile subscribers.”
Also Read: How To Transfer Airtime on Telkom in South Africa in 2024
“This is characterized by a blended ARPU of R81 (Q1 FY2024: R83). The post-paid subscriber base remained steady at approximately 3.0 million, with an ARPU of R183 (Q1 FY2024: R183).
“Meanwhile, the pre-paid segment experienced a 17.4% increase, reaching 18.2 million subscribers with an ARPU of R62 (Q1 FY2024: R63).”
Telkom upgrades networks, however, despite the growth in NGN services, overall revenue still declined by 2.4%, mainly driven by a decline of 28.4% in voice and legacy revenue.
Conclusion
Telkom’s wholesale fiber division, Openserve, also saw strong EBITDA growth thanks to an R128 million decrease in diesel expenditure.
The company said, “In addition to our network consolidation and simplification strategy, Openserve continued to execute an improved green energy mix through the deployment of lithium-ion batteries and solar energy solutions together with an improved diesel delivery model.”
