Telkom has continued to record significant growth in its consumer mobile division, according to market update for the nine months ended 31 December 2020.
The update shows that year-to-date group revenue increased by 0.9% year-on-year despite a 26.2% decline in year-to-date fixed voice and interconnection revenue.
This was attributed primarily to the growth of the company’s mobile division.
“Telkom’s broadband led strategy and the decision to invest in infrastructure ahead of demand enabled us to meet the surge in demand for broadband services,” said Telkom Group CEO Sipho Maseko
“These results also reflect the success of our financial strategic 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.”
The company said its key driver of growth was its consumer business, which includes its rapidly growing mobile division.
Big mobile growth
Telkom said that its mobile service revenue increased by 40.7% over the past nine months, with its active mobile subscribers also increasing substantially.
The number of Telkom Mobile active subscribers is now 14.9 million, and the average revenue per user (ARPU) of the Telkom Mobile division has increased to R108.
“The postpaid market remains challenging in terms of new connections due to consumers being under pressure,” Telkom said.
“However, we saw a strong growth in postpaid YTD ARPU of 15.6% to R212.”
Prepaid sign-ups are the biggest driver for growth at Telkom Mobile, comprising the majority – 12.3 million – of its customers.
Data revenue continued to see steady growth, increasing by 46.2% over the past nine months, and the company said its mobile strategy continues to pay off.
This significant mobile growth was also enabled by a 9.7% increase in network rollout to 6,135 sites, Telkom said.
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Source: mybroadband
