For immediate release
05 June 2017
The Minister of Telecommunications and Postal Services Dr Siyabonga Cwele welcomes the Telkom’s annual financial results for the year that ended in March 2017.
The company reported growing operating revenues, including from its mobile business which is making money again after four years of loses. The company also invested R8.7 billion in fibre, mobile business and its network in urban and rural areas.
“These strong results underscore the correctness of Government’s decision, working with other shareholders, to invest in turning around the company instead of selling it. Since the Cabinet decision of June 2012, shareholders reconstituted the board, which appointed a new management team. These changes have seen the company’s share price moving from a low of R12.50 to the recent R77.64. We encourage State Owned Companies that are in trouble to learn from Telkom how it achieved its turnaround,” says Minister Cwele.
Minister Cwele says it is encouraging that the company has been able to achieve such a performance in a tough global economic environment.
Minister Cwele says the performance of Telkom also suggests the South African society is increasingly embracing the use of Information and Communication and Technologies in their daily activities. He notes that this is a key building block as the country prepares for the Fourth Industrial Revolution.
“It is crucial that we make the cost of data and communication to be more affordable to ensure that more people meaningfully participate in a shared economic growth. We call on all operators to look at ways in which costs can be brought down,” said Cwele.
Issued by the Ministry of Telecommunications and Postal Services
05 June 2016