Telkom
Telkom SA has agreed to pay a fine of 200 million Rand to settle complaints that it used it's dominant Market position to the detriment of other internet providers .Telkom agreed in April with the Competion Comission to pay a seperate R449 million fine for using it's dominant position to block competition from other network providers.
With all of the ongoing problems that Telkom seem to be having they also announced that the companies HEADLINE EARNIINGS per share declined by 73.2% in the last financial year.
Headline Earnings per share then futher decreased by another 87 cents.The decline was largely as a result of the cost voluntary severance packages and a provision for the Competion Comission fine and other legal matters . In March Telkom also announced that it would offer voluntary severence packages to thousands of its employees.
In the reporting year Operating Revenue fell by 1.7% to R32.5billion while the comapany's operating expenses excluding the impairment witnissed an increase of 2.2% to R32bn.
The CEO of Telkom said despite their current financial peformance ,there was a oppurtunity for the comapny to build a profitable and sustainable business.
CEO Sipho Maseko said the following "I believe that Telkom is well positioned, through its unique fixed-line infrastructure and network, to facilitate the e-Enablement of our country on a commercial basis," he said.
"We remain well capitalised and have a strong financial base to work from." Maseko said success would require a complete transformation of Telkom. A full strategic review was currently underway focusing on medium and short-term interventions.
"Tough decisions will have to be made, particularly regarding costs and the decommissioning of unprofitable services," Maseko said.
On the positive side, ADSL subscribers increased by 5.2% to 870 505. Active mobile subscribers increased by 3.4% to 1.5 million. Mobile data revenue increased by 123.3% to R364m while fixed-line data revenue increased by 3.6% to R10.4bn
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