{"id":49739,"date":"2023-06-13T11:26:37","date_gmt":"2023-06-13T11:26:37","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either"},"modified":"2023-06-13T12:41:28","modified_gmt":"2023-06-13T12:41:28","slug":"telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either","title":{"rendered":"Telkom suffers R10bn loss amid impairments, warns it won’t pay dividends next year either"},"content":{"rendered":"

Africa-Press – South-Africa. <\/strong><\/span>SA’s third-biggest mobile operator Telkom warned it wouldn’t pay dividends for a fourth year, believing it prudent to first strengthen its balance sheet after suffering an annual loss of about two-thirds of its market value.<\/p>\n

Telkom, valued at about R15.7 billion on the JSE, reported a R10 billion loss in the year to end-March – from a profit of R2.6 billion previously. Hefty impairments, restructuring costs and load shedding hit the company. More pleasingly, active mobile subscribers grew 7.8% to about 18.3 million.<\/p>\n

Revenue grew 0.9% to about R43 billion, driven by almost 14% growth in its IT business. But its wholesale infrastructure business Openserve reported a 26% fall in fixed-line revenue, and a more than 30% fall in legacy data revenue.<\/p>\n

Openserve, along with Telkom Consumer – which includes its mobile and internet service units – were also subject to a R13.2 billion non-cash writedown, a reflection of technological changes, weaker economic conditions, and the fact the company’s shares have been trading below their net asset value for a significant period of time. Telkom had also written down its copper assets in 2013 by about R12 billion. Its fixed-line internet subscribers fell about a fifth in 2023, with fixed broadband subscribers down almost 3%.<\/p>\n

Telkom, which has about 11 600 employees, says 1 700 employees either accepted voluntary early retirement or severance packages, adding to R1 billion in restructuring costs in 2023.<\/p>\n

Telkom had suspended dividends for three years, with 2023 meant to be the final year, but said on Tuesday it would not be paying a dividend in 2024 either.<\/p>\n

“The year was characterised by unprecedented levels of load shedding, constrained consumer spending, and dynamic competition against the backdrop of a sluggish economy with persistent inflationary pressures,” CEO Serame Taukobong said.<\/p>\n

“As we continued to manage the transition to next-generation technologies, group performance was under pressure from a pronounced reduction in legacy revenues for the year.”<\/p>\n

“Despite this, revenue grew marginally. However, the incremental costs of load shedding reduced overall profitability, notwithstanding our efforts to manage operating costs.”<\/p>\n

While Telkom is trying to cut costs as part of its turnaround, the group is also looking to sell some of its businesses.<\/p>\n

It received non-binding bids for its mast and towers business, Swiftnet, but none met its criteria to be considered an asset held for sale in 2023.<\/p>\n

The company has also “received numerous credible expressions of interest from a range of suitable local and international partners” for its fibre internet business Openserve.<\/p>\n

On Monday, Telkom shares rallied after it confirmed it is in the sights of a consortium led by former CEO Sipho Maseko and comprised of Axian Telecom and the Public Investment Corporation (PIC).<\/p>\n

The Sunday Times reported at the weekend that Telkom received a bid in March from Maseko’s consortium of R46 per share – a more than 50% premium to its share price as of Monday’s open – but that talks continue. Bloomberg had previously reported the consortium may take a just over 50% stake in Telkom.<\/p>\n

For More News And Analysis About South-Africa<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – South-Africa. SA’s third-biggest mobile operator Telkom warned it wouldn’t pay dividends for a fourth year, believing it prudent to first strengthen its balance sheet after suffering an annual loss of about two-thirds of its market value. Telkom, valued at about R15.7 billion on the JSE, reported a R10 billion loss in the year […]<\/p>\n","protected":false},"author":84,"featured_media":49738,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[274,315,701,5508,1389,275,1308],"class_list":["post-49739","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-south-africa","tag-broadband","tag-interenet","tag-mobile","tag-south-africa-2","tag-telkom"],"yoast_head":"\nTelkom suffers R10bn loss amid impairments, warns it won't pay dividends next year either - South Africa<\/title>\n<meta name=\"description\" content=\"SA's third-biggest mobile operator Telkom warned it wouldn't pay dividends for a fourth year, believing it prudent to fi ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Telkom suffers R10bn loss amid impairments, warns it won't pay dividends next year either\" \/>\n<meta property=\"og:description\" content=\"SA's third-biggest mobile operator Telkom warned it wouldn't pay dividends for a fourth year, believing it prudent to fi ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either\" \/>\n<meta property=\"og:site_name\" content=\"South Africa\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2023-06-13T11:26:37+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-06-13T12:41:28+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/06\/sm_1686643715.935943.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"720\" \/>\n\t<meta property=\"og:image:height\" content=\"403\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Telkom suffers R10bn loss amid impairments, warns it won’t pay dividends next year either\",\"datePublished\":\"2023-06-13T11:26:37+00:00\",\"dateModified\":\"2023-06-13T12:41:28+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either\"},\"wordCount\":516,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/06\/sm_1686643715.935943.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-South-Africa\",\"broadband\",\"interenet\",\"mobile\",\"South-Africa\",\"telkom\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either\",\"url\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either\",\"name\":\"Telkom suffers R10bn loss amid impairments, warns it won't pay dividends next year either - South Africa\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/06\/sm_1686643715.935943.jpg\",\"datePublished\":\"2023-06-13T11:26:37+00:00\",\"dateModified\":\"2023-06-13T12:41:28+00:00\",\"author\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"description\":\"SA's third-biggest mobile operator Telkom warned it wouldn't pay dividends for a fourth year, believing it prudent to fi ...\",\"breadcrumb\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either#primaryimage\",\"url\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/06\/sm_1686643715.935943.jpg\",\"contentUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/06\/sm_1686643715.935943.jpg\",\"width\":720,\"height\":403,\"caption\":\"Telkom suffers R10bn loss amid impairments, warns it won't pay dividends next year either\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.africa-press.net\/south-africa\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Telkom suffers R10bn loss amid impairments, warns it won’t pay dividends next year either\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#website\",\"url\":\"https:\/\/www.africa-press.net\/south-africa\/\",\"name\":\"South Africa\",\"description\":\"Just another Africa News Agency Sites site\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.africa-press.net\/south-africa\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\",\"name\":\"cfeditoren\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g\",\"caption\":\"cfeditoren\"}}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Telkom suffers R10bn loss amid impairments, warns it won't pay dividends next year either - South Africa","description":"SA's third-biggest mobile operator Telkom warned it wouldn't pay dividends for a fourth year, believing it prudent to fi ...","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either","og_locale":"en_US","og_type":"article","og_title":"Telkom suffers R10bn loss amid impairments, warns it won't pay dividends next year either","og_description":"SA's third-biggest mobile operator Telkom warned it wouldn't pay dividends for a fourth year, believing it prudent to fi ...","og_url":"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either","og_site_name":"South Africa","article_publisher":"https:\/\/www.facebook.com\/AfricaPressTunisiaa","article_published_time":"2023-06-13T11:26:37+00:00","article_modified_time":"2023-06-13T12:41:28+00:00","og_image":[{"width":720,"height":403,"url":"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/06\/sm_1686643715.935943.jpg","type":"image\/jpeg"}],"author":"cfeditoren","twitter_card":"summary_large_image","twitter_misc":{"Written by":"cfeditoren","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either#article","isPartOf":{"@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either"},"author":{"name":"cfeditoren","@id":"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb"},"headline":"Telkom suffers R10bn loss amid impairments, warns it won’t pay dividends next year either","datePublished":"2023-06-13T11:26:37+00:00","dateModified":"2023-06-13T12:41:28+00:00","mainEntityOfPage":{"@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either"},"wordCount":516,"commentCount":0,"image":{"@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either#primaryimage"},"thumbnailUrl":"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/06\/sm_1686643715.935943.jpg","keywords":["Africa Press","Africa Press-South-Africa","broadband","interenet","mobile","South-Africa","telkom"],"articleSection":["all news","economy"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either","url":"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either","name":"Telkom suffers R10bn loss amid impairments, warns it won't pay dividends next year either - South Africa","isPartOf":{"@id":"https:\/\/www.africa-press.net\/south-africa\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either#primaryimage"},"image":{"@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either#primaryimage"},"thumbnailUrl":"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/06\/sm_1686643715.935943.jpg","datePublished":"2023-06-13T11:26:37+00:00","dateModified":"2023-06-13T12:41:28+00:00","author":{"@id":"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb"},"description":"SA's third-biggest mobile operator Telkom warned it wouldn't pay dividends for a fourth year, believing it prudent to fi ...","breadcrumb":{"@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either#primaryimage","url":"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/06\/sm_1686643715.935943.jpg","contentUrl":"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/06\/sm_1686643715.935943.jpg","width":720,"height":403,"caption":"Telkom suffers R10bn loss amid impairments, warns it won't pay dividends next year either"},{"@type":"BreadcrumbList","@id":"https:\/\/www.africa-press.net\/south-africa\/all-news\/telkom-suffers-r10bn-loss-amid-impairments-warns-it-wont-pay-dividends-next-year-either#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.africa-press.net\/south-africa\/"},{"@type":"ListItem","position":2,"name":"Telkom suffers R10bn loss amid impairments, warns it won’t pay dividends next year either"}]},{"@type":"WebSite","@id":"https:\/\/www.africa-press.net\/south-africa\/#website","url":"https:\/\/www.africa-press.net\/south-africa\/","name":"South Africa","description":"Just another Africa News Agency Sites site","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.africa-press.net\/south-africa\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb","name":"cfeditoren","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g","caption":"cfeditoren"}}]}},"_links":{"self":[{"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/posts\/49739","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/users\/84"}],"replies":[{"embeddable":true,"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/comments?post=49739"}],"version-history":[{"count":0,"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/posts\/49739\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/media\/49738"}],"wp:attachment":[{"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/media?parent=49739"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/categories?post=49739"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.africa-press.net\/south-africa\/wp-json\/wp\/v2\/tags?post=49739"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}