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How Telkom makes its money

Telkom has released its group interim results for the six months ended 30 September 2017. The company’s operating revenue was down by 0.6% compared to last year, reaching R20.1 billion. “The first half of the year was characterised by a tough economic environment and increased competition,” said Telkom.

Telkom said business confidence remained low in South Africa, despite the country exiting a recession in the second quarter of the year.

Operating revenue

Standout numbers from the results show that Telkom’s fixed-line operating revenue decreased, while its mobile voice and subscriber revenue rose by 12.9% to R587 million.

The rise is attributed to a 35.9% increase in the number of active mobile subscribers on the Telkom network.

The table below details how Telkom makes its money, and shows where it has grown since 2016.

Operating Revenue

September 2017 (Rm)

September 2016 (Rm)

Change

Voice and subscriptions 6,983 7,485 -6.7%
Usage 2,375 2,802 -15.2%
Subscriptions 4,021 4,163 -3.4%
Mobile voice and subscriptions 587 520 +12.9%
Interconnection 388 531 -26.9%
Fixed-line Domestic 171 198 -13.6%
Fixed-line international 149 277 -46.2%
Mobile interconnection 68 56 +21.4%
Data 6,507 5,932 +9.7%
Data connectivity 3,364 3,327 +1.1%
Internet access & related services 951 994 -4.3%
Managed data network services 545 566 -3.7%
Multimedia services 20 27 -25.9%
Mobile data 1,627 1,018 +59.8%
Customer premises equipment sales & rentals 1,766 1,707 +3.5%
Sales 118 139 -15.1%
Rentals 501 493 +1.6%
Mobile handset & equipment sales 1,147 1,075 +6.7%
Information technology 3,652 3,775 -3.3%
Converged communication 8 37 -78.4%
IT service solutions 2,089 2,306 -9.4%
Application solutions 948 824 +15.1%
IT hardware and software 374 311 +20.3%
Industrial technologies 70 61 +14.8%
Other 163 236 -30.9%
Other revenue 65 70 -7.1%
Trudon 421 478 -11.9%
Gyro 318 259 +22.8%
VS Gaming 9
Total 20,109 20,237 0.6%

Now read: Telkom Mobile is rocking[1]

References

  1. ^ Telkom Mobile is rocking (mybroadband.co.za)

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