(3 minutes read)
· The South African Telkom claims that it is the third largest mobile operator in South Africa – surpassing Cell C. According to company sources, the telecom operator has registered continued growth and a strong financial performance over the last six months
· The group expects headline earnings for the six months ended September to be between 15% and 25% higher than before
· It also is looking at a 16% growth in operating profit, which is partially offset by an increase in the effective tax rate from 28.8% in the prior period to 34.8%.
The South African Telkom claims that it is the third largest mobile operator in South Africa – surpassing Cell C. According to company sources, the telecom operator has registered continued growth and a strong financial performance over the last six months.
The group expects headline earnings for the six months ended September to be between 15% and 25% higher than before. It also is looking at a 16% growth in operating profit, which is partially offset by an increase in the effective tax rate from 28.8% in the prior period to 34.8%.
Shares in the group surged nearly 9% in mid-day trade as on (Yesterday) Tuesday. Group revenue showed resilience despite the pandemic though broadly flat compared to the prior period. Telkom noted that its mobile business continued its growth trajectory. In June 2020, Cell C and Telkom were on par in terms of subscribers. However, Cell C has since seen subscriber numbers decline to 11.7 million. The group will publish its interim results on 10 November 2020.
