Data-driven approach powers Telkom’s HY growth

Revenue for continuing operations rises to R21.4bn.

Telkom delivered a resilient performance for the six months ending 30 September 2024, reflecting significant strides in its data-led strategy.

The group’s mobile subscriber base climbed to 22.8 million, with a 19.6% increase in mobile data users to 14.6 million, with data traffic up 25.7%.

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Group revenue from continuing operations rose by 1.9% to R21.4 billion, with mobile service revenue surging by 10% and fibre data services growing by 15.5%. Driven by solid cost optimisation measures, adjusted Ebitda jumped 18.3% to R5.6 billion, pushing the adjusted Ebitda margin to 26.2%.

Serame Taukobong, CEO, stated: “The results for the six months ended 30 September 2024 demonstrate a robust and steady underlying operational performance, building on the progress made in the previous year. We continued to monetise our diverse infrastructure asset base to build a strong cash-generating business for the long term.”

“Simultaneously, we progressed the disposal of non-core assets to invest in future growth.”

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The balance sheet strengthened with interest-bearing debt reduced by R885 million, bringing net debt to adjusted Ebitda to 1.3x, down from 1.8x on 31 March 2024.

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Positive free cash flow “remained positive” at R768 million, benefitting from strong cash generations.

Telkom’s property sales generated R204 million, marking progress in its strategy to offload non-core assets. Additionally, the company advanced the disposal of Swiftnet, which remains classified as held for sale under IFRS 5 requirements.

“While we face challenges such as high unemployment rates and the need for economic growth to support our connectivity businesses, we are encouraged by positive signs in South Africa, including lowering interest rates and moderating inflation,” it concluded.

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