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Telkom Integrated Report 2017
Telkom’s products and services can
broadly be divided into four categories
These products and services are provided byTelkom’s
four business units:
Connectivity
Connectivity to broadband (data) and narrow band
(voice) is provided to wholesalers, large companies and
residential users through fixed-line (copper and fibre),
mobile and wireless transmission
Infrastructure and
network elements
This allows forTelkomwholesale customers to connect
their customers in turn
Converged ICT
solutions
Provision of IT products and solutions to corporate
customers
Electronic advertising
and media
This includes the
Yellow Pages, White Pages
and
advertisements
Connectivity
Infrastructure
and network
elements
Converged ICT
solutions
Electronic
advertising
and media
Consumer
> Operating profit of R5 280 million (FY2016: R5 471 million)
of which R3 907 million (FY2016: R3 997 million) is
reinvested in future growth (retained earnings)
2
> Cash generated from operations of R5 542 million
(FY2016: R6 701 million)
2
> Annual dividend of 422.0 cents per share (FY2016:
270 cents per share)
> Total shareholder return of 38 percent
> Repayment of debt (R1 539 million) and interest paid
(R469 million)
> Net promoter score (NPS) increased by 26.3 percent
>Telkom reputation: RepTrak score of 66.3 (FY2016: 45.7)
> Education initiatives through theTelkomFoundation
• R32 million invested (FY2016: R29 million)
• 660 teachers trained (FY2016: 430)
• 3–5 percent improvement in average science and maths
pass rate
> Small business development through the FutureMakers
programme
• R106 million invested (FY2016: R128 million)
• 40 black-owned businesses through our independent
field technician (IFT) programme, which in turn created
364 technician jobs
• 1 102 new jobs created
> More than R130 million procurement opportunities was
accessed by black-owned small businesses
>Telkom’s improved ICT solutions givesTelkom the
ability to provide converged solutions to customers
and improve customer knowledge to facilitate
upselling of products and services
> Received the Most-Innovative Operator Award in the
mobile market from MyBroadband
> New products and service offerings such as FreeMe,
launched in July 2016, and FreeMe Family, launched in
February 2017
> Compliance with licence requirements and other laws
and regulations
> 96 percent of key roles with emergency
succession coverage
> R10 562 million (FY2016: R12 165 million) paid to
employees in remuneration and benefits
2
> Employee turnover rate of 18 percent
(FY2016: 23 percent)
> BYM recruitment and female leadership and
development programme (FLDP)
> Investment in employee training and development
> Increase in active mobile subscriber base by
47.7 percent to 4 million
> Increase of 44.6 percent in mobile broadband
subscribers to 2.6 million
> Openserve has an open-access model which provides
Telkomwith a competitive advantage
> Passed more than 2.2 million premises with fibre
> 219 825 homes passed with fibre
> 5 928 fibre links to base stations
> 52 755 fibre end-points to business
> More than 149 000 kilometres of fibre
> Total carbon footprint of 675 850.92 tCO
2
e
> Progress against environmental management
programmes to reduce water and electricity usage,
including increasing the use of renewable energy.
Outputs
Outcomes*
1
2
3
4
*The outcomes of our business model represent the value we
created for our stakeholders. Each icon under outcomes
represents our stakeholder group as defined on page 43.
2
Our performance excludes the R2 193 million and a related tax
benefit of R517 million relating to voluntary early retirement
packages (VERPs) and voluntary severance packages (VSPs)
in FY2016 and R66 million and a related tax benefit of
R13 million FY2017.