Telkom half-year revenue up 2.5%

Telkom, South Africa's third-largest mobile operator, has reported a solid 2.5 per cent growth in revenue for the first half of the year, with headline earnings surging by just under 47 per cent. The telco is also on the verge of selling its masts and towers business, a strategic move that aims to further strengthen its financial position and streamline its operations. In an exclusive interview with CNBC Africa, Telkom CEO, Serame Taukobong, discussed the company's divisional performance, future outlook, cost management strategy, and the significance of digitization and artificial intelligence in shaping Telkom's operations. Taukobong highlighted the success of Telkom's data-driven strategy, emphasizing the substantial growth in the mobile business and the positive results yielded by the focus on becoming an infrastructure company. With 80% of revenue in the mobile sector coming from data and a high percentage of subscribers on 4G or 5G networks, Telkom's future is envisioned as a data-driven entity supported by its Infraco structure. The discussion on cost management shed light on Telkom's resilience in tackling challenges such as load shedding and inflation. Taukobong underscored the importance of consistent cost management strategies and significant investments in network infrastructure to ensure operational efficiency. As Telkom prepares to sell its masts and towers business, details about potential buyers and price points remain confidential, in accordance with JSC rules. However, Taukobong expressed confidence in the progress made with potential buyers and hinted at a nearing conclusion. Looking ahead, Telkom's strategic focus will revolve around cash generation, value unlock projects, and steady growth in the mobile segment. Taukobong emphasized the company's commitment to returning cash to shareholders and leveraging opportunities to enhance shareholder value. The discussion on digitization and artificial intelligence revealed Telkom's proactive approach towards technology adoption. With a dedicated team focusing on AI and a robust presence in the digital space, Telkom is poised to leverage AI for business growth and innovation. Despite challenges in sourcing skilled resources in machine learning and digital jobs, Telkom remains proactive in addressing talent needs through partnerships with educational institutions. In closing, Taukobong acknowledged the challenges faced by the South African economy, citing the impact of load shedding and financial constraints on consumers. However, he remained optimistic about Telkom's data propositions driving positive growth amidst a challenging economic landscape. Telkom's strong financial performance, strategic focus, and commitment to innovation position the company as a key player in the telecommunications sector, poised for sustainable growth and value creation.