The Telco group Telkom reports that its mobile subscriber count has increased by 21.6% to 24 million, and that its fiber business has grown significantly, rising 13.1% to 1.3 million residences.
Telkom reported that it is on track to meet its medium-term goals in a trading update for the third quarter that concluded on December 31, 2024, citing good performance consistent with its mid-term guidance.
Earnings before interest, taxes, depreciation, and amortization increased 28% to R3 billion during the period, while revenue increased slightly by 0.9% to just under R11 billion.
The sustained demand for data, increased prepaid recharges, and the 10.8% growth in mobile data revenue were the main drivers of the revenue increase.
Additionally, there were continuous shifts to fiber-related services, as evidenced by the 4.7% growth in fixed data revenue and the 3.2% increase in IT services revenue.
“With an overall growth rate of 9.6%, mobile service revenue continued to increase in value share, surpassing the growth rates of the South African mobile market.” Group revenue increased by 1.6% to R32 377 million for the first nine months, the report stated.
According to Telkom, its mobile business prioritized user acquisition, roaming and device cost management, and mobile network coverage expansion in order to transfer traffic to its network.
It claimed that “these initiatives led to higher profitability and gains in operational efficiency.”
The mobile company exceeded all of its recent benchmarks. The number of subscribers increased by 21.6% to a record 24 million.
With a 17.3% increase, mobile data users currently account for 62.3% of all mobile customers.
Although the average revenue per user (ARPU) for the pre-paid category increased significantly by 25.0% to 21.0 million subscribers, it was only R61 (Q3 FY2024: R66).
According to Telkom, non-metro areas that draw lower ARPUs but higher volumes are to blame for the lower ARPU.
With an enhanced ARPU of R185, the post-paid subscriber base remained steady at 3.0 million (Q3 FY2024: R182).
R79 was the lower blended ARPU (Q3 FY2024: R86).
According to the report, “a number of factors, including but not limited to portfolio rebalancing with regard to price plan device alignment, stringent credit vetting, and retention measures, are stimulating the post-paid segment to start showing recovery.”
Significant advancements were also made in the fiber industry. During that time, 100,115 more residences were connected to the fiber side, representing a robust 17.6% increase.
“Data consumption continued to rise significantly, with both mobile and fixed traffic increasing by 22.2% and 23.7% year over year, respectively.
Revenue from information technology services and fiber data for our ICT division both increased satisfactorily. In keeping with our plan, the overall revenue contribution from mobile data and fiber-related services kept growing, the statement stated.
Be the first to reply