Telkom has 15 months in which to show progress in revenue growth, or face significant cost interventions, says CFO Jacques Schindehutte.
The group this morning reported its results for the year to March and said operating revenue was flat, at R33.1 billion.
Although the Telkom reported headline earnings of R1.658 billion, its after-tax profit was 93% lower, at R179 million. It slumped into a R90 million net loss, after impairments and a loss on the sale of Multi-Links.
During the year, operating expenditure increased 6.1%, to R31.25 billion, mostly because of a full year of operating 8ta, impairment of iWayAfrica goodwill and assets of R569 million and R605 million additional depreciation, as Telkom reviewed the useful life of existing network equipment.
Staff costs dropped 11.1% after a voluntary retrenchment process that trimmed its staff base by around 2 000 jobs.
Schindehutte says there is a consensus that Telkom must slash costs and that labour productivity must be addressed. He says, however, that the company is working with unions to retrain staff and management and employees must lift their game to ensure return on investment.
Telkom has a motivated and committed employee base and the focus is on working smarter and more efficiently. The operator currently has about 23 000 employees.
CEO Nombulelo “Pinky” Moholi says Telkom must focus on growing its business rather than on staff cuts. She says that the company needs to train employees as it moves to a more technologically-advanced network, or move them to areas where they can add value before looking at voluntary retrenchments.
Share
