Fibre, data consumption lift Telkom earnings

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.TelkomZA shrugged off a weak macro environment to post increased group revenue for the quarter ended 30 June. FinancialResults telecoms connectivity

Despite challenging trading conditions impacting Telkom’s group profitability, the telco posted double-digit growth in data consumption, with mobile data revenue growing almost 10% amid increased demand for connectivity.

During the quarter, BCX’s revenue was up 2.9% driven by IT business growth, notes the report. Openserve’s fixed data new generation revenue growth was sustained at 10.6%, with fibre-to-the-home growing at a connectivity rate of 46.5%, and the number of homes connected up 24.2%. In the quarter, demand for IT hardware and software at BCX was healthy, as the IT business increased by 17.5% to R2 billion. This is attributable to growth in the software and hardware business of 62.9%, resulting from fulfilling order backlogs, as the fulfilment of orders improved along with new orders, says the group.

Tower business Swiftnet's EBITDA increased by 1.7% to R234 million year-on-year , in line with marginal revenue growth.

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