Mobile data is becoming a strong revenue driver for South African fixed line operator Telkom.

According to a company statement regarding its results for the six months ended 30 September 2013, Telkom’s mobile data revenues increased by 50% to reach R303 million.

The company, which is listed on the Johannesburg Stock Exchange (JSE), offers cellular services in the form of its unit Telkom Mobile.

Other highlights regarding Telkom’s results include that its operating revenue increased 0.3% to reach R16.2 billion and its profit after tax increased 41.1% to R773 million.

However, its earnings before interest, taxes,depreciation, and amortisation (Ebitda) decreased 0.4% to R3.9 billion, while its operating expenses increased 2.4% to R12,496 million and its capital expenditure grew 49.5% to R3,173 million

Regardless of Telkom’s falling Ebitda and growing expenses, the company’s group chief executive officer Sipho Maseko has said his firm is “actively cutting costs” while investing further in its network.

Maseko noted that the company is generating strong cash flows and he added that data, in particular, is becoming a key part of Telkom’s growth strategy.

"Telkom is working hard to capture the data opportunity in South Africa,” said Maseko in a statement.

“Data revenue constituted 33.7% of group revenue and increased by 3.1% overall. Lower prices on data due to competitive offerings continue to negate the volume growth experienced in this area," he added.

Telkom’s increasing focus on mobile data comes amid the explosive growth among handset users in Africa.

According to the GSM Association (GSMA), mobile has become the main medium for accessing the internet in sub-Saharan Africa.

Meanwhile, Africa’s mobile subscription base has grown by 18% annually over the last five years, according to a GSMA report released last week.

And Tom Phillips, chief regulatory officer at the GSMA, has said in the report, "Beyond further growth for voice services, the region is starting to see the explosion in the uptake of mobile data."

Telkom’s intent of capturing this market has been made even more evident after it earlier this month launched a 200MB per month prepaid SIM card for 12 months at a once-off cost of just $5.