Telkom interim results September 2017
Operating revenue lowered to R20.1 billion (R20.2 billion) whilst EBITDA decreased to R5.2 billion (R5.3 billion). Operating profit declined to R2.5 billion (R2.6 billion). Profit attributable to owners diminished to R1.6 billion (R1.8 billion). Furthermore, headline earnings per share shrunk to 303.9 cents per share (328.2 cents per share).
Declaration of dividend
In line with our dividend policy of paying an interim dividend of 40 percent of interim headline earnings for the six months ended 30 September 2017, the Board declared an ordinary interim dividend 21 of 118.114 cents per share.
Looking forward, we will continue to seek a sustainable growth framework for the group. We intend to invest in a manner that enhances our financial sustainability to continue creating a platform for growth. We remain cognisant of the challenging economic environment and we will be diligent in the allocation of capital including measuring returns. It is imperative for the group to continue to invest in key growth areas in line with our strategy to ensure that we do not compromise our medium-term prospects. This is the primary reason for the increased investment in fibre and mobile.
As we focus on our growth framework for the group, we will continue the review of our business portfolio and prioritise strategic initiatives. This includes reviewing our legacy network and IT systems; non-core assets and product portfolio.
Openserve will focus on reviewing the network technology. We will continue to optimise our network footprint, by analysing our current deployed network and upgrading, decommissioning and using alternative technology where seen optimal. This is in line with our strategy of modernising, transforming and commercialising our network thus ensuring that the end customer continues to be given the best output value through the best possible connectivity option.
BCX will continue with its cost-conscious approach in order to preserve profit and margins. Our business portfolio review process will positively change the quality of our earnings and revenue mix. BCX will continue focussing on leading application and infrastructure service capabilities and investing in future growth areas, which include driving solutions and business outcomes for our customers. BCX remains a growth platform through which cloud computing and data analytics, amongst others, will be delivered.
Telkom Consumer will be discontinuing legacy products. This product rationalisation process will therefore see our suite of Unlimited, Freeme and Smart broadband products forming the bedrock of our sales and marketing advances going forward. In addition, we are redesigning our IT systems to drive and enable a lean business operating model and provide an automated business process. This IT redesign is premised on a nimble architecture supporting an Omni-channel service model. This will also incorporate a full digital channel element enabling and ecommerce and self-service capabilities. Telkom Consumer will continue on its trajectory of growing the mobile business by double digit growth, the stabilisation of the fixed consumer segment and reaffirming the market share in the small business sector.
We continue to drive the new operating model that provides greater business unit accountability for operational delivery and value contribution for the group as a whole, while ensuring strategic control from the corporate centre. We will continue to improve our organisational culture and foster increased initiative and enhance individual accountability. Talent management remains key in ensuring that we have the right skills in the business units. We believe our focus on talent management will ensure the sustainability of the group.