Telkom reports big jump in full-year profit

18 June 2024 - 08:25
By Nqobile Dludla
Telkom says it will be in a position to pay dividends in the near term, with its financial year 2025 targeted as the first year-end to consider paying a dividend. File photo.
Image: REUTERS/Siphiwe Sibeko Telkom says it will be in a position to pay dividends in the near term, with its financial year 2025 targeted as the first year-end to consider paying a dividend. File photo.

Telkom, South Africa's third biggest telecom company, on Tuesday posted a full-year profit of R1.9bn and said it would consider resuming dividends from 2025.

The company restated its year-earlier result, a loss after tax of R9.9bn, reflecting restructuring costs.

Its latest earnings saw write-offs of property, plant and equipment and intangible assets fall to about R80m from R13.5bn.

The operator said it will be in a position to pay dividends in the near term, with its financial year 2025 targeted as the first year-end to consider paying a dividend.

As part of a revised dividend policy, the board proposes a dividend payout range of 30% to 40% of free cash flow after taking into account capital expenditure investments, it said.

Its short to medium-term priorities are to strengthen its balance sheet by paying debt and to invest in capital expenditure to drive growth, it said.

Telkom reported a 1.6% rise in group revenue to R43.2bn, with mobile service revenue up by 6.8% to R19bn driven by demand for mobile data and fibre services.

Reuters