Telkom reports growth in operating revenues

Monday, June 5, 2017

Pretoria – Telkom has reported growth in its operating revenues, including its mobile business which is making money again after reporting losses for four years.

“These strong results underscore the correctness of Government’s decision, working with other shareholders, to invest in turning around the company instead of selling it,” Minister of Telecommunications and Postal Services Dr Siyabonga Cwele said on Monday.

He said since the Cabinet decision of June 2012, the shareholders rebuilt the board, which appointed a new management team.

“These changes have seen the company’s share price moving from a low of R12.50 to the recent R77.64. We encourage State Owned Companies that are in trouble to learn from Telkom how it achieved its turnaround,” Minister Cwele said.

The company also invested R8.7 billion in fibre, mobile business and its network in urban and rural areas.

Minister Cwele said it is encouraging that the company has been able to achieve its performance in a tough global economic environment.

He said the performance of Telkom also suggests the South African society is increasingly embracing the use of Information and Communication and Technologies in their daily activities.

He notes that this is a key building block as the country prepares for the Fourth Industrial Revolution.

“It is crucial that we make the cost of data and communication to be more affordable to ensure that more people meaningfully participate in a shared economic growth. We call on all operators to look at ways in which costs can be brought down,” Cwele said. – SAnews.gov.za

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