Johannesburg- and New York-listed telecommunications group Telkom on Monday reported a 35% increase in interim headline earnings per share to 775,9 cents for the half-year ended September 2005, from 574,9 cents for the previous comparable period.
Basic earnings per share grew by 46,3% to 792,7 cents compared with 541,8 cents previously, while revenue rose by 9,9% to R23,456-billion during the period under review.
Operating profit, meanwhile, increased by 37,3% to R7,517-billion versus R5,474-billion.
New Telkom CEO Papi Molotsane, who replaced Sizwe Nxasana on September 1, ascribed the “excellent cash flows” to staff dedication.
“The second half of the Telkom financial year will be characterised by a profound focus on customer-service excellence and the acceleration of broadband adoption. We are well-positioned to drive further economic growth of the business and to make a meaningful contribution to the economy of all South Africans,” he added.
Although Telkom’s broadband adoption rate surged by 161% to 95 300 during the six-month period, ADSL penetration rate remains below 0,3% in a country with an estimated population of 47-million.
The fixed-line business saw a 4,3% increase in revenue to R16,083-billion, while Vodacom’s mobile operating revenue grew to R7,373-billion from R5,883-billion.
The phone group attributed profit growth to strong mobile and data revenue growth, cost reductions in the fixed-line business, continued growth in Vodacom’s South African customer base and reduced finance charges.
The fixed-line monopoly is yet to deliver WiMAX after partnering with Intel in trialling the solution to enable future broadband demand to be captured, to complement ASDL deployment.
Molotsane said Telkom will await the availability of the spectrum before deploying WiMAX in South Africa. Elsewhere on the continent — in case of expansion — the group is likely to partner with mobile operators to deploy the wireless solution.
Looking ahead, the dual-listed operator looks set to improve customer service and customer-satisfaction levels, as well as reduce voice and broadband tariffs as part of lowering the costs of doing business in South Africa. — I-Net Bridge