Economy

Telkom profit jumps on subscriber growth and digital services

Date: Aug 5, 2024

South Africa's (SA) Telkom reported 24.1% growth in core profit in the first quarter, buoyed by strong subscriber growth and increased use of its "next-generation network" (NGN) offerings as it ditched legacy services.

Core earnings or EBITDA at SA's third-largest telecom company grew to $151 million in the three months ended June 30, the operator, majority-owned by the government, said in a statement.

Overall group revenue rose 3.9% to $590-million, driven by high demand for NGN services, including fibre and 5G, which now account for 80.7% of group revenue, Group Chief Executive Serame Taukobong said.

"NGN broadband offerings, enabled by our ongoing capital investment in our mobile and fibre networks, have positioned Telkom advantageously as the best-value mobile network," Taukobong said.

He added that the group's strategy for its fibre optic network "further improved the market-leading home connection rate to 49% for the quarter."

--Reuters--

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