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Telkom Q1 revenue falls flat, mobile business to break even this year

Telkom Q1 revenue falls flat, mobile business to break even this year

Photo by Bloomberg

31st July 2015

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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Telecommunications group Telkom on Friday said it had posted a 1.7% uptick in net revenue for the three months to June 30, on the back of a strong performance by mobile on data revenue and higher fixed-line subscription revenue.

Mobile net revenue for the first three months of the year increased by 68.5% to around R350-million, with active mobile subscribers having increased by 11.7% to 2.1-million with a blended average revenue per user (Arpu) of R82.80.

Telkom Mobile narrowed its loss by 87.9% to R30-million for the first quarter of the 2016 financial year, with the company confident of pushing the unit into the black before year-end.

Telkom attributed the increase to a 68.7% surge in mobile data revenue, an increase in revenue-generating subscribers and the higher Arpu.

Post-paid customers grew by 61.9%, while prepaid customers decreased by 1.3%, mostly owing to a clean-up of the revenue-generating subscriber base.

However, the JSE-listed company noted the continuing decline in fixed-line voice use and leased line revenues.

Revenue from the group’s enterprise unit remained largely flat, while the consumer and wholesale businesses recorded low single-digit growth of 2.7% and 2.8% respectively.

Fixed-line voice and interconnection revenue was down R320-million, or 15.2%, quarter-on-quarter, while fixed-line voice use revenue declined by 13.7% quarter-on-quarter.

Interconnection revenues also fell by 22.7% on the back of lower volumes on mobile international outgoing traffic with a corresponding decrease in payments to international operators.

Fixed-line data revenue contracted by 2%, or R60-million, during the period under review.

Edited by Creamer Media Reporter

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