TELKOM SA SOC LIMITED – Group Annual Results for the year ended 31 March 2021

  - EPIDTA margin increased by 11.7% to 27.7%

- Hefs and PEPS increased by 53.4% ​​and 89.6% to 561.5 and 529.1 coins respectively.

- FCF increased by 15.8% to R2 063 million

- Mobile data revenue rose 41.0% to R12 211 million

- Mobile subscriber base rose 27.8% to 15.3 million

- FTTH connection rate 51.1%

The person being evaluated is characterized by a harsh economic environment enhanced by COVID-19, which is a

In an unprecedented and uncertain environment, South Africa's economy stagnated in the first half of the year.

The Declaration of Telecommunications has revived our vision of 'connecting the people of South Africa to a better life'.

Important service, which is to enable connections by constantly locking our people. Our discipline and

The focused financial structure allowed us to deal with the COVID-19 storm. We are happy that we have finished the year

Better profitability, stable profit, stronger cash flow and stronger balance.

In the last five years, we have been investing in new revenue streams to build our business from heritage

Next Generation Business. Today, the next generation revenue group accounts for more than 65% of the revenue. We also arrived

The vantage point of new revenue streams is the point of penetration that goes beyond inheritance. Through our investment

With our data-network and infrastructure, we have established broadband leadership throughout and continue to strengthen it

Businesses have also developed a large mobile business, becoming the third largest mobile business in South Africa.

Walking position

COVID-19 burst and closed at a time when South Africa is moving away from a weak economy

Fear of shrinking The two drivers started the business together to stop the wage hike.

Postponement of project cost to hold cash due to layoffs and increasing uncertainty of staff.

As a result the impact of available financial resources and unavailable revenue of our customer base is negatively affected.

Parts of our business. Competitive responses intensified as a tool of publicity and pricing

Competitive to attract and retain customers.

The control environment is difficult and uncertain. Delay in spectrum auction process, we

They believe that allocation is necessary to encourage competition and to keep pace with current market conditions. Process till now

Reduces the ability of our shareholders to generate a certain amount of additional long-term value

Foundation. We have developed an unstable spectrum to address changes in transport patterns induced by COVID-19.

Performance overview

Facing a challenging environment, the group's revenue grew by 0.4% to R43 222 million. This development is going on

Voice adjusted revenue and revenue growth of our mobile business with substantial revenue growth to make up for the decline

Derived from COVID-19. Our fixed cost management plan consistently ensures better profitability of the group.

And EPITDA margin. We have improved direct spending and operating costs are below inflation. As a result, EPIDA increased

The EPITDA margin has been increased from 11.7% * to R12.0 * billion to 2.8 ppm 27.7% *.

The performance of our business units is different because each is individually affected by COVID-19, which is different

Nature of our basic business unit portfolio.

Our mobile business continues to grow with an average of over 15 million subscribers annually

Revenue per user R104 (ARPU). As part of the growth of our business, our deliberate and determined allocation of capital

We have been successfully equipped with data-based and fiber-driven networks to significantly increase demand for data and broadband.

Mobile services have inspired more people to work from home. Mobile broadband traffic increased by 53.2% to 942 petabytes,

The result is a 41.0% increase in mobile data revenue and a 34.5% increase in mobile service revenue.

R16 938 million.

PCX saw revenue decline as a response to national lockout and domestic impacted voice revenue

From enterprise customers. Information technology (IT) revenue also came under pressure as companies pushed capital back

Costs (capex) and delayed projects will increase uncertainty. Supply chain disruptions also affected

Businesses are closed as countries around the world. In response, PCX successfully focused on cost-based upgrades

The resulting EPIDA will increase by 6.6%, with a clear focus on cash retention.

Yes !, which focuses on small and medium businesses, has been negatively affected by the response of COVID-19, including a. also includes

National locks, layoffs, salary suspensions are increased and small businesses shut down. However, we are excited

Digital, eCommerce and FinTech Business Opportunities with Yes-Driven Revenue Opportunities! We have already seen

There have been some major improvements in many digital platforms, including the telecom e-commerce platform.

Pre-acquisition of an average of 98 521 business customers using the platform per month. We have seen good growth

Our final insurance products were launched in the initial phase and one year.

Data consumption on OpenServe increased due to the need to consume multiple digital services

Data transport in standard fiber and carrier connection solutions. Results Fiber 2.9 ppm. Was increased

The Housing Connection Rate (FTTH) was 51.1% and the number of passed houses increased by 20.7% to 549,957. Despite the increase

Revenue growth in FTTH and carrier-based connectivity solutions, continued impact of COVID-19 on corporate segment

There was a steady decline in voice needs and traditions. Revenue thus declined by 10.9% to R13,485 million.

We are delighted that our fiber-based infrastructure and access allows the infrastructure to become the final milestone.

A seamless end-to-end customer experience provides measurable revenue opportunities in the future.

The development of gyms and towers continues by commercializing existing towers and implementing new construction pipelines. I enjoy

Backed by an 8.0% increase in the number of new leases, Towers' revenue increased 6.6% to R1 237 million.

BEPS and HEPS are driven by functional development

Despite the challenging business environment, the group delivers a solid core revenue growth of 88.1% *

BEPS and HEPS are increasing by R2.6 * billion, 89.6% * and 53.4% ​​* respectively as compared to the previous year.

control environment

High demand to maintain status quo until the High Court decides to reduce spectrum licenses

process validation. Telecom argues widely that invitations to apply (IDA) are flawed

The following reason:

- South Africa's Independent Communications Commission (ICASA) aims to obtain licenses regardless of sub 1 GHz.

  The fact that it is not available on a national basis

- Mobile broadband services seek ICASA license before completion of investigation

- IDA is designed to maintain a flexible market structure

- The design of multiple auctions ignores the effect of spectrum adjustment between large and small operators.

- The spectrum allocated for the total open access network is contrary to the policy guidelines of the minister.

Telecom argues that legal spectrum licensing promotes competition among operators and excludes the current

Bipolar System. Therefore, the public interest is guaranteed to start the competition.

Complies with electronic law on electronic conversion. This will ensure fair competition and competitive prices

Long time consumer. Spectrum is licensed for a period of 20 years.


Our investment in capital over the last five years has helped us successfully transform the business. In the next generation

With revenue streams contributing more than 65% to the Group's revenue and motivation growth, we value the business. A larger

Part of our growth is driven by the mobile business, which has been better than expected over the past five years

Years. We expect the mobile business to continue its growth trajectory in terms of continuous service revenue.

To keep pace with growth, a steady voice drop now only contributes 15% to the business. based on

With this change in the revenue mix, we expect our group's revenue to increase to a high single digit in between.

Guidance period. In the first year of this guidance period, we expect to be at the lower end of the range

Effect of the third wave of COVID-19.

Our focus on sustainable cost management at EPIDTA has improved as the team has grown by a greater margin

Legacy business with low margin business for the next generation. The following structural changes based on our cost

For the current year, we expect to continue to focus on sustainable spending to increase performance within the business. Together

With expected revenue growth and some limited spending bucket upgrades, we believe the group is EBITDA

Medium-height rising to single digits in the medium of the guide span.

We will continue to invest in our development areas, while we are expected to spend 4.0 billion to 7.5 billion annually.

Consistent Revenue Growth. Capital allocation discipline will be used because we want to improve revenue

Capital investment We will continue to focus on building the FCF and maintaining the momentum shown in the last two

Years. The net credit to EPIDTA will be kept below 1.0x. The team will focus on the value opening strategy.

The initial value from our business portfolio is an important part of our capital allocation structure.

* Cost of R270 million and R76 million on FY2021 excluding tax impact on VSP, VERP and S189,

Post a Comment