Telkom says it continues to streamline its property portfolio, focusing on non-core assets to optimise operational costs and generate cash flow.
In the first quarter of the financial year ending 30 June 2024, Telkom successfully transferred 19 properties, securing proceeds of R161 million.
This is part of an ongoing strategy by Gyro, Telkom's property management arm, to rationalise the company's real estate footprint.
Beginning the year with 42 properties valued at R287 million in the conveyancing process, Telkom aims to transfer these assets within the financial year.
The first auction for additional properties was completed in June, garnering offers for nine properties worth R33 million, with sale agreements currently being finalised.
Q1 FY2025 Financial Highlights
Telkom reported a robust financial performance for the first quarter:
Group Revenue: Increased by 3.9% to R10.91 billion.
Next Generation (NGN) Revenue: Rose by 7.0%.
Group EBITDA: Jumped 24.1% to R2.78 billion.
Telkom Consumer Mobile Revenue: Grew by 5.3% to R5.74 billion.
Mobile Service Revenue: Up by 9.5%.
Mobile Data Revenue: Increased by 12.9%.
Openserve Fixed Data NGN Revenue: Up by 7.1%, with a market-leading fibre-to-the-home connectivity rate of 49%.
BCX Revenue: Increased by 2.4% to R3.18 billion, driven by a 7.1% rise in IT revenue.
Swiftnet Revenue: Grew by 5.2%.
Operational Performance
Telkom Consumer: Revenue rose by 2.6% to R6.59 billion, driven by a data-centric approach. Mobile business revenue increased by 9.5%, with total external revenue up 5.3%. The mobile subscriber base expanded by 14.6% to over 21 million, and mobile data traffic surged by 25.8% to 414 petabytes.
Openserve: Maintained growth in NGN products, with a 7.1% increase in fixed data NGN revenue. Homes connected to fibre grew by 19.5%, resulting in a connectivity rate of 49.0%. EBITDA rose by 16.8% to R1.02 billion.
BCX: Revenue increased by 2.4%, driven by a 7.1% rise in IT hardware and software business revenue. The IT segment contributed significantly to the overall growth, with local business unit revenue up by 29.8%.
Strategic Focus
Telkom's strategic focus on cost containment, network expansion, and customer value proposition has positioned the company well in the competitive telecommunications landscape.
The group said it aims to continue leveraging its investments in mobile and fibre networks to meet high data traffic demands and drive future growth.
The continued disposal of non-core properties will further optimize Telkom’s property operating costs and support its broader financial and operational goals, it said.
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