Telkom results show that the group strategy was effectively executed
JOHANNESBURG – Fixed Service revenue still contribute the bulk of income although this segment is on the decline.
However the company has done extremely well to increase the contribution from it’s mobile division by as much as 58 percent and that of information technology by 6.2 percent. The increase in revenue from mobile of more than R3 billion more than compensate for the decline in fixed income revenue of R2bn.
Telkom group chief executive Sipho Maseko thanked his workers for their hard work. He said as Telkom continued to grow, they were conscious of the opportunities offered by technology outside of what they have historically considered to be their core business.
“Telkom is working to ensure that they are structured to continue the migration of their revenue streams and maximise the opportunities that these technological advancements offer,” said Maseko.
Jan Moganwa has overall accountability for driving growth in adjacent markets, the rest of the workforce have a responsibility to identify opportunities and look for prospects to maximise them in the areas they work in.
Telkom will consolidate their offerings to small and medium sized businesses that are in various parts of Telkom into a single business unit.
The focused approach of the property portfolio has yielded good returns and Maseko believes a similar focus in the small and medium business will benefit their r customers and allow Telkom to compete more aggressively in the market place.
Telkom has given this responsibility to Lunga Siyo, the chief executive of Yellow Pages.
“Our customer service remains one of our biggest challenges and has the potential to compromise our efforts and growth trajectory,” Mr Maseko said.
He challenged his workforce to ask themselves daily, will this idea or action improve how customers experience Telkom.
Telkom stated: “It is of significant interest that Telkom’s underlying property portfolio is held through an entity called Gyro. Gyro’s subsidiaries manage Telkom’s portfolio of 1 332 properties, which includes offices, client-service centres, residential dwellings, land parcels, and 6 500 masts and towers.
“Effectively, Gyro is a ‘mega’ real estate investment trust that has a market value of R24 billion – equal to three-quarters of Telkom’s market cap of R31.6 billion.
Corrie Kruger is an independent correspondent for Business Report.
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