Telkom on Monday reported a 33,5% increase in basic earnings per share and strong revenue growth for the year to March 31, 2003, in the first set of results to be released since its listing earlier this year.
The telecommunications giant said in a statement its earnings before tax grew 33,4% to R12,8-billion while its earnings margin increased from 28,1 to 34,1%.
Telkom listed on both the JSE Securities and New York Stock exchanges on March 4 after selling some 139-million shares in an initial public offering. The company described the result as ”robust”.
”This was a strong performance, with our results clearly demonstrating that our strategy to maintain our leadership positions in both fixed-line and mobile markets, and to deliver value for shareholders, is working,” group chief executive of
Telkom Sizwe Nxasana said.
Telkom had expanded its operating margins through better service and high value product offerings as well as a drive for efficiency and real cost savings. The take-up in prepaid and ISDN lines and volume growth in data services were also ”noteworthy”.
During the year under review, Telkom had grown fixed-line data revenue by 15,2%, increased the number of fixed-line prepaid customers by 15,4% and seen a 26% increase in the number of mobile customers.
Nxasana, said increased competition and emerging technologies would compel the company to further develop its strategy to maintain its leadership position and deliver value for its shareholders.
”We will continue to improve the effectiveness of our fixed line business by improved customer service, innovative products and competitive pricing,” he said.
Telkom had also started to work more closely with cellular operator Vodacom on potential synergies in areas such as marketing, procurement and products. – Sapa