Telkom takes a hit as its fixed-line business drags

  • 📰 BusinessTechSA
  • ⏱ Reading Time:
  • 47 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 61%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

Telkom’s earnings took a hit in the six months ending September 2022, as customers turn away from fixed-lines and embrace new technologies.

Telecommunications group Telkom has published its interim results for the six months ending 30 September 2022, showing a big hit to headline earnings over the period.

The lower group EBITDA – and the constrained EBITDA margin at 23.4% – was attributable to a 31.4% increase in the cost of handsets, equipment, software and directories, following higher mobile handset sales of 19.7% and the increase of 73.1% in IT hardware and software revenue, it said. “However, growth was impacted by customer recharges returning to pre-Covid-19 levels. We continued to pursue our migration strategy and continued to manage the transition from old to new technologies. However, this migration impacted our revenue growth and overall profitability.”The mobile business continued to drive growth in Telkom Consumer. Total mobile revenue grew marginally by 0.5% as the product mix evolved towards longer post-paid contracts.

Openserve struggled, with revenue declining 4.3% over the period, despite 10.8% growth in its ‘next generation’ revenue which comprises high-capacity links and fibre.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 24. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

PODCAST | Investment highlights for 2022SPONSORED | High inflation and aggressive interest rate hikes, combined with geopolitical tensions affected markets and asset classes this year. So, what was the biggest investment lesson? PSGWealth's CIO, Adriaan Pask, shares his views in this podcast.
Source: BDliveSA - 🏆 12. / 63 Read more »