Telecommunications services provider Telkom South Africa says the growth of its mobile business and full consolidation of ICT solutions provider BCX has boosted its financial performance.

According to its provisional annual results, the company grew its operating revenue by 10% to R41 billion and its net revenue by 8% to R32 billion, which was positively impacted by the reclassification of BCX cost of sales as part of the change of the group accounting policy.

The Group's headline earnings per share (HEPS) increased 12.4% to 731.4 cents, while its Capex increased 43.3% to R8 654 million with Capex to revenue of 21.1%.

BCX was consolidated for the full year compared to seven months' revenue in the prior year. The mobile service revenue growth was driven by an almost 48% increase in active customers as the demand for mobile services intensified. Service revenue strips out handsets from revenue, stated Telkom in its announcement.

The telco added that its mobile business delivered service revenue growth of 38% and an earnings before interest, taxation, depreciation and amortisation (EBITDA) of R660 million.

"This comes after four years of EBITDA losses for this division," reads the Telkom statement.

Telkom Group Chief Executive Officer Sipho Maseko, said, "I am pleased with the significant strides we've made in a difficult operating environment, which was characterised by regulatory uncertainty, increased competition and a weak economic climate."

Mophatlane's departure

In March this year the new-look BCX was formally introduced after an 18-month consolidation process.

At the time, former BCX CEO Isaac Mophatlane described the launch as a new chapter in Africa's digitalisation process.

However, in early May Telkom SA issued a statement confirming Mophatlane's departure, news that was met with suspicion by the Black Business Council (BBC) which expressed concern over what it described as the ongoing "exodus of black professionals" from Telkom.

The organisation issued a statement, part of which read: "According to a statement from Telkom CEO Sipho Maseko, Mophatlane resigned. But the BBC believes he was forced out."

BBC Chairman Sello Rasethaba said, "It's very strange...suddenly a year later you are talking about a situation where you are giving this guy an exit. We are trying to reconcile the words that were said upon the appointment and the words that were said upon his departure. We smell a rat."

According to Telkom, BCX remains a key growth platform for the Group and the company now has a singular sales team, a unified go-to-market strategy and one brand.

It has also accelerated its capital investment, focusing on fibre and mobile business.