Johannesburg, 06 Jun 2005
Telkom shareholders are to receive a dividend of R9 a share after the telecoms network operator grew headline earnings per share by 47.5% from 863.6c to 1 274.1c in the year to March.
The company has declared an annual dividend of 400c a share and a special dividend of 500c a share, payable on 8 June.
Operating revenue for the period rose to R43.12 billion from R40.48 billion previously, while the operating profit soared from R9.25 billion to R11.22 billion.
Net profit grew 47.6% to R6.81 billion from R4.59 billion previously.
CEO Sizwe Nxasana says the profit growth was not driven by tariff increases. "Growth was driven mainly by improving efficiencies," he says. "Only 10% of that growth was from tariff increases, so the myth that Telkom grows profit on tariff increases is not correct."
The main drivers behind the net profit growth, he says, were growth in fixed-line finance charges, fixed-line savings in fixed-line operating expenditure and growth in mobile business. Growth in fixed-line revenue, according to Telkom, forms the smallest part of the overall profit growth.
Nxasana says the group is investing heavily to move to an IP-based network so it can offer IP services to customers, hence the aggressive roll-out of ADSL.
Other growth engines that form part of the group`s vision are VAN, ISP and IT services, wholesale services, mobility and opportunities outside SA, which it will explore with its 50% subsidiary, cellular operator Vodacom.
These opportunities are offered especially in Nigeria, Kenya and the Democratic Republic of Congo, Nxasana says.
Vodacom achieved a 19.5% increase in revenue to R27.3 billion. Profit from operations were up 23.9% to R6.5 billion and a net profit of R3.9 billion is 27.2% up on that of the previous year.
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