π° Telkom Suffer R10bn Loss amid Impairments, Warns Say E No Go Pay Dividends Next Year Either πΈβ
SA’s third-biggest mobile operator Telkom don run alert say e no go pay dividends for di fourth year π. Dem believe say e better make dem first strengthen dia balance sheet afta dem suffer annual loss wey be two-thirds of dia market value π«.
Telkom, wey dey valued at about R15.7 billion on top di JSE, report say dem lose R10 billion for di year wey end for March – from profit of R2.6 billion wey dem make before π±. Hefty impairments, restructuring costs, and load shedding na im wound di company πββοΈ. But good tori be say active mobile subscribers increase by 7.8% reach about 18.3 million π.
Revenue grow by 0.9% reach about R43 billion, na di IT business wey push am up with almost 14% growth π. But di wholesale infrastructure business wey be Openserve report say fixed-line revenue fall by 26%, and legacy data revenue fall by more than 30% π.
Openserve, along with Telkom Consumer – wey include dia mobile and internet service units – dey also suffer R13.2 billion non-cash writedown π. Dis na because of technological changes, weak economic conditions, and di fact say di company shares don dey sell below dia net asset value for long time π. For 2013, Telkom bin don write down dia copper assets worth about R12 billion. Number of fixed-line internet subscribers fall by almost one-fifth for 2023, and fixed broadband subscribers fall by almost 3% π’.
Telkom, wey get about 11,600 employees, yan say 1,700 employees don accept voluntary early retirement or severance packages. Dem add am join di restructuring costs wey reach R1 billion for 2023 πΌ.
Telkom bin don suspend dividends for three years, and 2023 suppose be di final year. But on Tuesday, dem yan say dem no go pay dividend for 2024 too π.
“Di year bin get plenty load shedding, consumer spending bin dey limited, and competition dey high for di background of sluggish economy and persistent inflationary pressures,” CEO Serame Taukobong yan π€·ββοΈ.
“As we continue to manage di transition to next-generation technologies, di group performance bin dey under pressure as we see big reduction for di legacy revenues for di year.”
“Despite all dis, revenue small-small increase. But di costs of load shedding reduce di overall profitability, even as we try manage operational costs.”
While Telkom dey try cut costs to turn di situation around, di group dey also look to sell some of dia businesses π.
Dem don receive proposals for dia mast and towers business, Swiftnet, but none of dem meet dia criteria to be considered as asset wey fit sell for 2023.
Di company don also receive plenti credible expressions of interest from local and international partners for dia fibre internet business Openserve.
On Monday, Telkom shares rise after dem confirm say one consortium wey former CEO Sipho Maseko lead, alongside Axian Telecom and di Public Investment Corporation (PIC), dey interested for dem ππ.
NOW IN ENGLISH
π° Telkom Suffer R10bn Loss amid Impairments, Warns Say E No Go Pay Dividends Next Year Either πΈβ
SA’s third-biggest mobile operator Telkom don run alert say e no go pay dividends for di fourth year π. Dem believe say e better make dem first strengthen dia balance sheet afta dem suffer annual loss wey be two-thirds of dia market value π«.
Telkom, wey dey valued at about R15.7 billion on top di JSE, report say dem lose R10 billion for di year wey end for March – from profit of R2.6 billion wey dem make before π±. Hefty impairments, restructuring costs, and load shedding na im wound di company πββοΈ. But good tori be say active mobile subscribers increase by 7.8% reach about 18.3 million π.
Revenue grow by 0.9% reach about R43 billion, na di IT business wey push am up with almost 14% growth π. But di wholesale infrastructure business wey be Openserve report say fixed-line revenue fall by 26%, and legacy data revenue fall by more than 30% π.
Openserve, along with Telkom Consumer – wey include dia mobile and internet service units – dey also suffer R13.2 billion non-cash writedown π. Dis na because of technological changes, weak economic conditions, and di fact say di company shares don dey sell below dia net asset value for long time π. For 2013, Telkom bin don write down dia copper assets worth about R12 billion. Number of fixed-line internet subscribers fall by almost one-fifth for 2023, and fixed broadband subscribers fall by almost 3% π’.
Telkom, wey get about 11,600 employees, yan say 1,700 employees don accept voluntary early retirement or severance packages. Dem add am join di restructuring costs wey reach R1 billion for 2023 πΌ.
Telkom bin don suspend dividends for three years, and 2023 suppose be di final year. But on Tuesday, dem yan say dem no go pay dividend for 2024 too π.
“Di year bin get plenty load shedding, consumer spending bin dey limited, and competition dey high for di background of sluggish economy and persistent inflationary pressures,” CEO Serame Taukobong yan π€·ββοΈ.
“As we continue to manage di transition to next-generation technologies, di group performance bin dey under pressure as we see big reduction for di legacy revenues for di year.”
“Despite all dis, revenue small-small increase. But di costs of load shedding reduce di overall profitability, even as we try manage operational costs.”
While Telkom dey try cut costs to turn di situation around, di group dey also look to sell some of dia businesses π.
Dem don receive proposals for dia mast and towers business, Swiftnet, but none of dem meet dia criteria to be considered as asset wey fit sell for 2023.
Di company don also receive plenti credible expressions of interest from local and international partners for dia fibre internet business Openserve.
On Monday, Telkom shares rise after dem confirm say one consortium wey former CEO Sipho Maseko lead, alongside Axian Telecom and di Public Investment Corporation (PIC), dey interested for dem ππ.