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How has Telkom performed in other key performance areas?

Not good.

‘Highlights of the Group financial key performance areas include:

  • Group operating revenue up 8.3%.
  • 4.8% decline in group operating profit.
  • Group EBITDA margin decreased to 37.5%.
  • 50.9% net debt increase and a net debt to equity ratio of 60.0%.
  • Basic earnings decreased by 16.6%.

Cash flows from operating activities decreased by 11.5%, cash flow utilised in investing activities increased by 71.3% and cash flows financing activities increased by 653.2% during the six months ended September 30, 2007’ (Telkom profits down, MyBroadband, 19 November 2007).

In other words, despite an increase of 8.3% in group operating revenue, one can’t say Telkom has performed exceptionally well. It is clear however that the group’s efforts to invest in new infrastructure and such will help them to stay afloat in years to come.

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