Telkom’s annual financial results for the year ending 31 March 2024 reveal positive strides in mobile service revenue and subscriber growth. The company reported a notable 11.9% increase in its mobile subscriber base, reaching 20.4 million. However, there was a slight drop in the average revenue per user (ARPU), decreasing to R84 per customer compared to the previous year’s results.
Despite the drop in ARPU, Telkom demonstrated its adaptability to market conditions by strategically increasing its revenue from mobile services, which totalled US$1 billion, a 6.8% increase. The postpaid subscriber base remained relatively stable, with only a slight decrease of 0.5%. However, the prepaid customer base saw a significant growth of 14.3%, reaching 17.5 million. This strategic move led to an increase in ARPU to US$3.60, showcasing Telkom’s ability to adapt and maintain its revenue streams.
Telkom attributed the rise in prepaid customers to acquiring higher-quality connections and increased charging behaviour. Additionally, mobile broadband subscribers increased by 9.5%, totalling over 1 million customers. The telco stated that 62.3% of its mobile subscriber base now uses broadband.
During the year, Telkom demonstrated its commitment to maintaining service quality by investing US$144 million in capital expenditure on its mobile services. A substantial portion of this investment was dedicated to acquiring spectrum and enhancing network resilience. This proactive approach was in response to load-shedding challenges, which the company revealed had significant financial implications. However, despite these challenges, Telkom managed to decrease its overall capital expenditures by 17% compared to the previous year, a testament to its efficient financial management.
Telkom Group CEO Serame Taukobong emphasized the company’s measured approach to capital expenditure, noting a better-than-expected positive free cash flow and improved operational performance. This strategic decrease in capital expenses aligns with Telkom’s long-term strategy and reflects the company’s adaptability to cyclical challenges such as load-shedding.
