Telkom has released its financial earnings for a period of six months ending September 2017 and while there is growth to be seen, there have also been declines.
The good news is that data revenue increased 9.7% to R6.5 billion. This was largely helped along by the service provider’s Uncapped and Unlimited Home offers. Telkom also attributed the growth to the introduction of its streaming service, LIT.
However earnings before interest, tax, depreciation and amortisation dropped 1.9% from the same time last year to R5.2 billion while operating revenue also saw a decline of 0.6% year-on-year to R20.1 billion.
“The group continues to invest for future growth and is currently reviewing its business portfolio in order to prioritise strategic initiatives,” said Telkom in a statement.
There is still hope yet for Telkom thanks to its wholesale division Openserve.
The big success story for the period reported is the reduction of IP Connect rates in June. This discounting of rates by 32% translated into a 25% average reduction in prices consumers pay to their ISP.
Therein is perhaps the explanation for the decrease in earnings because Telkom has said it will absorb these costs in order to grow the broadband market in the medium term.
“Customer experience remains a priority throughout the group, with the key pillars being people, systems and processes. A new IT platform and the digitisation of Telkom stores have already resulted in improvements, and the group continues to seek out further enhancements,” the firm concluded.