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Telkom now has over 20 million mobile subscribers
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Telkom, a JSE-listed telecommunications firm, has surpassed the 20 million user mark for the first time. This development reveals that its fiber business is operating excellently well.
The company announced its group annual financial results for the year ended 31 March.
Telkom 20 million Mobile Subscribers
According to the company, revenue from mobile and fiber are the major contributors to the revenue increase.
The company showed that mobile service revenue rose by 6.8% despite difficult economic conditions, and the number of homes passed with fiber jumped by 17% to top 1.2 million, with 590,000 connected. Telkom claimed this statistic was the highest in the industry.
Also Read: Telkom Shares Soar on Increase in Full-Year Earnings
The telco said, “BCX made good strides in growing its IT service revenue. Also, Swiftnet’s tower roll-out program and tenant growth further contributed to revenue growth and margin expansion.”
The company further said, “Telkom made good progress in the 2024 financial year. It delivers stronger operational performance and improved financial results, as the leading infrastructure company at the heart of South Africa’s digital connectivity.”
It notes that group performance for the year improved against a challenging economic backdrop in South Africa.
“Our data-led strategy delivered ahead of industry trends, as we grew mobile service revenue by 6.8% and surpassed 20 million mobile subscribers.”
Telkom 20 million Mobile Subscribers, A Result Of Its Investments
Telkom invested R6.1 billion in network resilience throughout 2023. It expanded its mobile network, modernising infrastructure, and more. That investment is paying off in 2024.
Revenue across the group went up by 1.6 percent to R43.2 billion, despite the challenges affecting business in South Africa. This includes the load-shedding issues in the country.
This investment included Spectrum, which is already deployed to further improve offerings and service levels to retail, enterprise, and wholesale customers.
Conclusion
According to the company, from a loss position in the prior year, profit for the year also increased by more than 100% to R1.9 billion. It’s boosted by the non-recurrence of once-off restructuring costs and lower depreciation, while higher interest rates increased net finance costs compared to the prior year.
Telkom finally said, “We put great effort into improving cash generated from operations. This increased by more than R4 billion, excluding restructuring costs. The better-than-expected positive free cash flow of R424 million was driven by improved operational performance and our measured approach towards capital expenditure (capex) this year.”
