Fixed-line operator Telkom reported a 9.8% increase in revenue, to R29.8 billion, for the six months ended 30 September.
In a statement released this morning, the company says it is positioning itself to "take advantage of the future converged services environment that is fast becoming a global best practice".
To this end, it is developing capabilities to offer the full suite of converged services that encompass fixed, mobile, data and multimedia services.
"The ability to pull traffic back onto the fixed-line network through mobile service and leverage the NGN (next-generation network) for full convergence and high-value data services will enhance Telkom`s core defend and grow strategy," says Telkom Group CEO Reuben September.
Telkom`s fixed-line business delivered revenue growth of 2.8%, to R16.565 billion. This division also showed strong growth in data, with revenue increasing 12.2%, to R4.4 billion.
Group EBITDA decreased by 2.8%, to R10 billion, during the six months under review, while the group EBITDA margin decreased from 37.7% to 33.4%.
Cash generated from operations decreased by 0.5%, to R6.4 billion, and headline earnings per share increased by 0.4%, to 745.2c per share.
Strong ADSL showing
The group`s ADSL service experienced solid growth, with subscriptions growing to 491 774, an increase of 46.7%. Multi-Links also experienced a significant increase in subscriber numbers, from 813 392 to 1 780 985.
Telkom also achieved a 96% increase in Do Broadband subscriptions and a 17.9% increase in Internet all access subscribers.
During the six months to end-September, Telkom says ADSL average installation time improved to 17 days from 20 days, while 60% of all ADSL installations are now done through the self-install option. Telkom is targeting 592 000 ADSL subscribers for the 2009 financial year.
The company adds that it continues to pursue opportunities outside the borders of SA. Multi-Links` "impressive" growth is aligned to its capital expenditure programme that has, in the period in question, seen the realisation of several milestones.
Mobile-based transmission stations have been increased to a total of 589 and optic fibre deployment now covers 3 800km, while a packet exchange has been commissioned in Abuja, Nigeria, for 300 000 subscribers.
ICT plans
Telkom claims its determination to move into the ICT market in Africa is evident, as this drive gained momentum by the acquisition of MWeb Africa and 75% of MWeb Namibia, for $63 million.
"The transaction for the largest satellite-based ISP in sub-Saharan Africa is expected to close in the first half of the 2009 calendar year," says September.
He added that, together with the ISP brands to be acquired with this deal, there are significant synergies to be extracted through Africa Online and Multi-Links.
September adds that the need for the re-positioning of fixed-line in the current competitive environment is urgent due to continuous pressure on Telkom`s voice revenue.
"The fixed-line`s strength in the data market and need to combat fixed-mobile substitution led to the board recommending to shareholders the sale of 15% of Telkom`s stake in Vodacom to the Vodafone Group and the further unbundling of the remaining 35% stake in Vodacom to Telkom shareholders.
"I am excited about Telkom`s repositioning within the market. Our strength is our network and we intend to utilise the proceeds to leverage this strength for the benefit of all stakeholders.
"We also intend to accelerate the expansion of our network, including the next-generation network, selectively build a mobile network and explore acquisitive opportunities, particularly in the data centre arena," concludes September.
Share