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Q1 FY2025 HIGHLIGHTS:
Telkom SA SOC Limited is pleased to announce strong quarterly results for the three months ended 30 June 2024, driven by solid subscriber growth and uptake of next-generation network (NGN) offerings.
Despite weak economic conditions and a challenging trading environment, Group revenue grew within guidance and advanced by 3.9% year-on-year to R10 907 million, driven by growth in demand for NGN offerings.
Key contributors to this strong growth include Mobile service revenue rising 9.5%, fixed data NGN revenue growing by 7.1% and information technology revenue expanding by 10.3%.
Telkom saw continued momentum in demand for data traffic and mobile, with fixed traffic growing 25.8% and 33.0% respectively y-o-y. Mobile subscribers advanced by 14.6% and surpassed the 21-million mark, with a stable pre-paid ARPU and post-paid base, while homes connected with fibre grew by strong double digits, at 19.5% y-o-y.
These key performance drivers propelled NGN revenue growth, supported by reduced direct costs resulting from ongoing cost-optimisation projects. This led to EBITDA growth of 24.1%, to R2 778 million, on the back of a stronger Q1 FY2025 compared to the prior comparable period and is expected to moderate for the remainder of the financial year. The Group EBITDA margin improved to 25.5%, also benefiting from a stabilised electricity supply in South Africa during the recent quarter.
Telkom Consumer recorded a 2.6% increase in revenue to R6 589 million, in a challenging competitive landscape. Openserve’s NGN products and services maintained their upward trajectory, showing continued growth with fixed-data NGN revenue increasing by 7.1% y-o-y.
BCX revenue increased by 2.4% to R3 175 million, on the back of strong performance in the IT Hardware and Software business. Gyro continued to rationalise the property portfolio through accelerated disposal and transfer of properties that are no longer core to the Group's operational requirements.
Shareholder approval was obtained on 24 May 2024 for the sale of the masts and towers business. The Competition Commission recommended that the Competition Tribunal approve the proposed transaction with conditions on 1 August 2024. Swiftnet continued to augment and commercialise the business by adapting to changing market conditions and identifying additional opportunities for revenue streams, whilst maintaining strong EBITDA margins.
"We have had a good start to the financial year, with pleasing performance on the top line benefiting from our data-led strategy and compelling value propositions. I am proud of the work we have done to position Telkom advantageously as the best value mobile network," says Serame Taukobong, Telkom Group Chief Executive Officer.
"Looking forward, we will continue to focus on cost containment, while simultaneously monetising our networks by adding to our mobile sites and expanding fibre footprint where these investments contribute to top-line growth and overall profitability."
Ends.