South Africa: Telkom Sees Revenue Growth - Driven By Mobile Usage Surge
Telkom South Africa has announced bumper revenue growth for the quarter that ended December 2020. According to its financial reporting, Telkom said that its Group's revenues grew by 0.9% in the quarter, on a year-on-year comparison. The Group's growth was driven mostly by its mobile services business, which saw explosive growth of almost 41% in the period.
Telkom's figure also indicated a substantial growth in its active subscribers to 15 million, an increase of 24%, generating an average revenue per user (ARPU) of about R108 (US$7.30). Given all of these, the Telkom reporting also stated its prepaid market was the main driver of new connections with the post-paid market remaining a
a challenge as consumers come under spending strain.
Telkom has also enjoyed a boost in its mobile data revenues. That service category, it said, grew by 46% on the back of substantial growth in mobile traffic as well as a rise in demand from mobile customers, which have now risen to more than 10 million strong.
Commenting of the bright figures, Sipho Maseko, the Group CEO at Telkom said: "These results reflect the success of our strategic financial objectives which include building financial resilience through sustainable cost management, cash preservation and disciplined capital allocation as we weather the impact of Covid-19 in our businesses."