Telkom records 3.9% revenue growth, exceeds 21m subscribers in Q1 2024

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August 6, 2024
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2 min read
Telkom
  • Telkom, a South African telecom company, has released its trading update for the quarter ending June 30, 2024. The report reveals a 3.9% revenue growth to R10.9 billion ($587.2 million), and mobile subscribers have risen by 14.6%, surpassing 21 million.
  • Group revenue increased by 3.9% to R10.9 billion, fueled by rising demand for next-generation network (NGN) offerings. Key drivers of NGN growth include a 9.5% rise in mobile service revenue, a 7.1% increase in fixed data NGN revenue, and a 10.3% boost in information technology revenue.

Serame Taukobong, Group Chief Executive Officer, shared that “Telkom had a good start to the financial year with a pleasing performance on the top line benefiting from our data-led strategy and compelling value propositions.

“ Our next generation revenue streams continued their positive momentum and grew by R576 million, an increase of 7.0%. NGN revenues now comprise 80.7% of Group revenue.” 

The group attributed its growth to the ongoing delivery of innovative, value-driven offerings that significantly boosted data consumption.

Telkom highlighted that the 14.6% increase in its mobile subscriber base, reaching 21.2 million, was a key factor in its strong performance. The company emphasised that its data-centric approach, including its mobile business and expanded fibre offerings, contributed to the overall success.

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The mobile business saw a revenue increase, with external mobile service revenue rising by 9.5% to R4.9 billion ($268.99 million). Total external revenue grew by 5.3% to R5.9 billion ($308.9 million).

The group reported continued strong demand for data, with mobile traffic increasing by 25.8% and fixed traffic by 33.0% year-on-year. It also saw significant growth in 'beyond connectivity' services, with revenue reaching R407.5 million. This growth was driven by the airtime advance product, rising by 32.3% year-on-year and now accounts for 32.9% of total recharges.

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Meanwhile, Telkom confirmed that while it sees ongoing growth in NGN services, the overall revenue declined by 2.4% to R3 056 million y-o-y, primarily driven by a decline of 28.4% (R188 million) in voice and legacy revenue.

In March 2024, Telkom offloaded its Swiftnet masts and towers business to R6.75 billion ($355.4 million). The move underscores its “commitment to fortifying its financial position, reducing debt and enhancing liquidity.” 

On August 1, 2024, the Competition Commission (CompCom) disclosed it approved the deal for TowerCo to acquire Swiftnet after concluding that the development is unlikely to prevent competition in the market.

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