Telkom full year operating profit hits ZAR41 billion

Sibusiso Luthuli

Telkom, South Africa’s third-largest mobile carrier said its operating revenue surged to ZAR41 billion compared to ZAR37.3 billion reported in the previous year.

Telkom said its EBITDA grew at R10.9 billion (R8.8 billion), while, operating profit was higher at R5.2 billion (R3.3 billion). Profit attributable to owners increased to R3.8 billion (R2.2 billion). Furthermore, headline earnings per share increased to 721.1 cents per share (323 cents per share).

The company declared divident 290.75253 cents per share. This follows an interim dividend of 131.23874 cents per a share declared in the interim results taking the annual dividend in respect of the financial year to 421.99127 cents per share (March 2016: 270 cents per share).

CoTelkom said it will continue toseek a sustainable growth framework for the group. We intend to invest in a manner that enhances our financial sustainability to continue creating a platform for growth. This is the primary reason for the increased investment in fibre and mobile. With the completion of the integration of our Enterprise business with BCX, BCX has now increased its scale and scope of products, services and business solutions.

The company said BCX remains a growth platform through which cloud computing, data analytics and Internet of Things, among others, will be delivered. Internally, BCX will be responsible for maintaining and supporting our IT production and development systems and will manage all data centre operations. The crux of our new operating model is to provide greater business unit accountability for operational delivery and value contribution for the group as a whole, while ensuring strategic control from the corporate centre.

The fundamental reason for our system improvements is to enable us to be better at what we do to create an improved customer experience. We continue to rationalise our legacy systems to be fit for purpose, replacing archaic systems with simpler, more efficient systems where possible to enable us to become a more effective Telkom of the future. Driving this approach reduces costs and the integration of systems, and provides us with a more complete view of our customersÆ needs while catering for them more efficiently.

We intend to improve our organisational culture and foster increased initiative and individual accountability. These aspects, coupled with persistent customer focus, our strategy, our new operating model, and synergy improvements in our business units, are expected to yield positive growth, financial prosperity and stakeholder value creation.

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