Telkom earnings pummelled by load-shedding and people not paying their bills

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Telkom’s earnings have declined despite healthy revenue growth.

Telkom has released a trading update for the quarter that ended on 30 June 2023, reporting 3.8% higher group revenue, while group Ebitda declined 4.2%.

A slight increase in direct costs, which were negatively impacted by the product mix for the quarter, also contributed to negating Telkom’s lower wage bill. Taukobong said they have largely incorporated load-shedding into their operating cost base, but warned regular power cuts would continue to impact profitability.

“BCX’s IT business growth, along with Swiftnet’s further commercialisation of its portfolio, also supported group revenue growth.” Mobile broadband customers are up 8.9% to 11.7 million, which Telkom said comprises an increase of 63.2% in active mobile customers. Taukobong said they received credible expressions of interest from a range of local and international parties.

 

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