Fixed-line operator Telkom is pushing data and mobile as voice revenues continue to decline and aims to drive these to half of revenue within four years.
The group this morning reported its results for the year to March and said operating revenue was flat, at R33.1 billion.
Although Telkom reported headline earnings of R1.658 billion, its after-tax profit was 93% lower, at R179 million, and it slumped to a R90 million net loss, after impairments and a loss on the sale of Multi-Links.
CFO Jacques Schindehutte says Telkom's future opportunities lie in mobile and data, which it wants to drive to make up half of its revenue in four years. Currently, data is 31.8% of revenue, while 8ta accounts for 3.6%.
Telkom will roll out 3G and 4G base stations and plans to add about 1 000 units to its network this year.
CEO Nombulelo “Pinky” Moholi says the year was one characterised by cleaning up and Telkom did better than many would have expected. She says the company faces challenges such as declining voice revenue, legacy regulatory issues, allocation of spectrum and a need to invest.
Telkom's investments will focus on data, broadband, as well as fixed-to-mobile convergence, as the company moves to an IP-based network, says Moholi. She says, although voice revenue still accounts for the bulk of Telkom's income, it is declining while data is growing.
While ADSL subscribers gained 10% in the year, to reach 827 091, total data revenue dropped 1.7%, to R10.5 million, because of the non-inclusion of last year's benefits from the Fifa Soccer World Cup. Stripping the games out, data revenue would have grown 2%.
Moholi says Telkom has significant opportunities, because of growth prospects in data, an increase in the number of smartphones, fixed-to-mobile convergence and ICT services in the enterprise environment.
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