Telkom revenue growth boosted by BCX

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Telkom operating revenue grew 9.8 percent to ZAR41.0 billion boosted by the full consolidation of BCX in the year, along with the solid performance of our Mobile business.

Net revenue growth of 7.9 percent was positively impacted by the reclassification of BCX cost of sales as part of the change of the group accounting policy.

The Mobile service revenue accelerated by 38.4 percent driven by a 47.7 percent increase in active customers as the demand for our mobile services heightens.

“We made significant strides in a difficult operating environment which was characterised by regulatory uncertainty, increased competition and a weak economic environment,” says Sipho Maseko, Telkom Group Chief Executive Officer.

“I am pleased with our solid performance, which was boosted by the integration of BCX and the robust performance of our Mobile business. We accelerated our capital investment to ensure future growth, focusing on fibre roll-out and our Mobile business. We have now created the implementation capability to support our strategic growth areas. Openserve continues to lead in the fibre market with more than 2.2 million premises passed with fibre.”

“This is underpinned by increased investment, improved operational efficiencies in network roll-out and more streamlined processes. We will continue to focus on upgrading the legacy network to state of the art new technologies,” says Maseko.

The Mobile business continued to be the star performer of the group, and delivered service revenue growth of 38.4 percent and EBITDA of ZAR660 million after four years of recording EBITDA losses. This was a result of an expansion in our network, extension of our distribution channels and the launch of innovative products.

“BCX remains a key growth platform for the group. The integration of our Enterprise business with BCX is complete and a new brand, BCX, was launched.”

We have a singular sales team and a unified go-to-market strategy. We began to win new customers in the public, retail, banking and financial services sectors against credible competitors as we leveraged off our ability to offer end-to-end solutions. BCX consolidated the basic cloud services and created a single platform to deliver cloud services. BCX strengthened its data centre capabilities to include Oracle and launched Cisco hosted collaboration solutions and SAP HANA Enterprise cloud services.

“Customer experience remains important to us and is an ongoing journey. We continued to focus on our systems and processes to improve customer experience. Our improved IT systems contributed in enhancing customer experience by reducing systems response time, increasing self service via mobile apps, and reducing the multiple steps in the approval process for customers. The process redesign enabled us to improve our assurance, fulfilling and billing processes,” adds Maseko.

“To ensure we remain relevant in a continually changing information and communications technology (ICT) environment, we heightened our efforts in talent management. We are investing in our employees at all levels to ensure we have the right sets of skills in the company. We believe our focus on talent management will ensure the sustainability of our business,” concludes Maseko.

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Bontle Moeng is the Founder and Managing Director of BizNis Africa. Moeng has spent 16 years working in the digital and online media industry across Africa. She applied her trade at True Love magazine prior to discovering her passion for Investment news in key sectors across Africa. Moeng previously worked for ITWeb, Starfish Mobile Technologies, ITNewsAfrica, AVATAR Agency, eNitiate, Global Interface Consulting and Havas Johannesburg. Her primary focus is to provide solid and valuable content on investment opportunities for the ICT, Energy and Mining sectors across Africa. In addition, the online news publication assists global companies to expand their presence in Africa. Email: news@biznisafrica.co.za

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