South Africa's Telkom sees revenue, subscribers jump in second quarter

AFRICAN STOCKS AND FINANCEAugust 7, 2024 at 9:59 AM UTC

TLDR

Telkom, a South African telecom giant, reported a 3.9% revenue increase to R10.9 billion in the quarter ending June 30, 2024, driven by high demand for next-generation network services.
The revenue growth was fueled by a 9.5% rise in mobile service revenue, a 7.1% increase in fixed data NGN revenue, and a 10.3% surge in information technology revenue.
Group CEO Serame Taukobong attributed the strong performance to Telkom's data-led strategy and compelling value propositions, with subscriber numbers growing by 14.6% to surpass 21 million.

South African telecommunications giant Telkom reported a revenue increase of 3.9% reaching R10.9 billion ($587.2 million) in its financial results for the quarter that concluded on June 30, 2024.

The increase in revenue was driven by the heightened demand for its next-generation network (NGN) services, led by a 9.5% surge in mobile service revenue, a 7.1% climb in fixed data NGN revenue, and a 10.3% increase in information technology revenue.

“Telkom had a good start to the financial year with a pleasing performance on the top line benefiting from our data-led strategy and compelling value propositions," Group CEO Serame Taukobong said. Its subscribers also grew 14.6% growth to exceed 21 million.

Key Takeaways

The South African telecom market is moderately fragmented, with major players including Vodacom South Africa, Telkom SA SOC Limited, MTN South Africa, Cell C Limited, and Saicom South Africa. The market also hosts various Internet service providers (ISPs), mobile virtual network operators (MVNOs), and fixed-line service providers. Some South African telecommunication companies are competitive on an international level and hold strong positions in the global telecom space. The revenue for the South Africa Telecom Market is expected to grow at a compound annual growth rate (CAGR) of 5.32% over the next five years.

Finance

Telkom

South Africa

Telecommunications

Digital Infrastructure

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