Wrap Text
Telkom SA SOC Limited
Registration number 1991/005476/30
JSE share code: TKG
JSE bond code: BITEL
ISIN: ZAE000044897
("Telkom" or 'the Group')
Trading update for the quarter ended 30 June 2022 ('Q1 FY2023')
Q1 FY2023: Group salient features
' Stable growth in active subscriber base in an intensely competitive landscape. Active mobile
subscribers up 7.8% year on year to 17.3 million with a blended ARPU of R88.53
o Post-paid subscribers grew 8.0% year on year to 2.8 million at an ARPU of R208.50
o Pre-paid subscribers grew 7.7% year on year to 14.5 million at an ARPU of R64.77
' Solid growth in Mobile data traffic, up 12.4% to 263 petabytes supported by a 2.0% growth in
broadband subscribers to 10.7 million on a year on year basis
' Fibre growth trajectory sustained in the period under review on a year-on-year basis
o Total fixed traffic increased by 18.9% to 452 petabytes
o Number of homes passed with fibre grew 45.3% to more than 890 000. Number of homes
connected with fibre grew by 35.2% to 414 847 representing FTTH connectivity rate of
46.6%
' M&T portfolio, continues to be commercialised, productive portfolio up 2.7% to 3 935 year-on-
year
' Challenging financial performance on a year on year basis
o Group revenue down 3.2% to R10 281 million
o Group EBITDA down 15.2% to R2 334 million with EBITDA margin contraction of 3.2
ppts to 22.7% impacted by topline performance and an annual salary increase of 6%
' BCX IT business reported growth and improved profitability after a challenging period
' Substantial progress on value unlock/creation strategy has been made. Legal separation of
Openserve concluded ' effective 1 September 2022.
Statement from the Group Chief Executive Officer: Serame Taukobong
Telkom published its trading update for the first quarter of the year, demonstrating a challenging
performance due to accelerated legacy migration, intense competitive landscape and consumers being
under significant pressure due to rising fuel prices, interest rates and high unemployment rate. As Telkom
Mobile value propositions remain attractive in the market to cater for affordability of our customers, its
effective price per megabyte (MB) reduced by 14.8% year on year. The increase in the traffic growth,
however, was not sufficient to offset the decline in effective pricing.
On 1 April, Telkom effected an average salary increase of 6% across the Group. The ongoing stage 4
loadshedding exacerbated the weak performance putting pressure on our cost base. Despite this
pressure, we continue to optimise our roaming costs and benefitted from the dual roaming partnerships.
Notwithstanding the challenging financial performance, we saw an increase in mobile subscribers ahead
of market due to our attractive value proposition. The continued growth trajectory in the fibre market was
sustained in the period under review with the FTTH connectivity rate of 46.6% remaining the highest in
the market. The BCX IT business grew after a challenging period due to the easing of global supply chain
constraints together with an increase in deal pipeline and win ratio, which signals a positive outlook for the
year ahead.
Operating review
Challenging financial performance
Group revenue declined by 3.2% year on year to R10 281 million impacted by accelerated migration from
legacy, tough operating environment and intensely competitive landscape. We accelerated migration from
legacy to next generation technologies, following a slowdown over the past two years as we catered for
customer demands in the intense Covid-19 environment. This resulted in fixed legacy voice revenue
declining by 19.9% year on year, mainly seen across the Enterprise and Small to Medium Business
segment. This was partially offset by an increase in external revenue of BCX IT business and Openserve
by 4.8% and 8.4% respectively.
Group EBITDA declined by 15.2% with EBITDA margin contracting by 3.2 ppts to 22.7% impacted by
topline performance and an increase in our cost base.
Openserve fibre growth trajectory sustained in the first quarter of the year
Openserve continued to see growth in fibre revenue with a year on year growth of 6.5% mainly driven by
its broadband and carrier services contributing to its leadership in providing open access connectivity
across South Africa. Openserve expects this trend to continue underpinned by the ongoing demand for
data consumption which is reflected through the 18.9% growth in fixed data traffic to 452 petabytes.
Focused on smart deployment of its infrastructure, coupled with a connect led strategy, Openserve saw a
sustained increase in its overall broadband base over the last three quarters. With fibre connectivity
offsetting the copper access decline, Openserve's broadband services grew to over 612 000. This growth
across its data portfolio contributed to Openserve's Q1 revenue of R3 217 million while a 24% decline in
fixed voice revenue across the Enterprise and Small to Medium business resulted in an overall year on
year revenue decline of 3.9%.
As Openserve transitions through the change in technology, revenue, and channel mix, it has seen a
strong growth in revenue of 8.4% from its external channels, mainly driven by sustained demand for fibre
services. The ongoing growth in fibre broadband has seen the external channel contribution grow to 57%
fueled by a growing base of over 200 ISP's on its open access network. Openserve grew its homes passed
base by 45.3% year on year to more than 890 000 and increased the number of homes connected with
fibre by 35.2% year on year, representing an industry leading connectivity rate of 46.6%. Holding true to
its strategic objective of providing the best customer experience in every interaction, Openserve saw
positive feedback from its customers through a continued interaction NPS score of above 65. This was
also reflected through Openserve's high standards of connecting its fibre broadband customers within an
average of 3 days while maintaining a 99.99% availability across its core network.
While Openserve lays the building blocks for future growth, the ongoing economic pressures and the
serious challenge of load shedding negatively impacted its costs with a significant increase of R44 million
in diesel spend, resulting in an EBITDA margin of 29.9% in the first quarter of the year. Despite these
challenges, Openserve continues to focus on transforming its fixed costs whilst executing on its strategic
objectives.
Swiftnet continues to commercialise the Masts and Tower portfolio
Swiftnet remains on course in commercialising its productive portfolio, which was up 2.7% to 3 935 towers.
This included 17 towers and 2 IBS sites that were constructed during the first quarter of the year. Swiftnet
achieved revenue of R322 million during the first quarter, marginally down from R325 million reported in
the comparative prior period. Revenue was negatively impacted by terminations by one of our external
Mobile Network Operator (MNO) customers as well as Openserve's decommissioning of legacy-based
technologies. Lease escalations, new tenancies and equipment upgrades on sites where our tenants
already had tenancy, as they continue to modify their networks, positively impacted revenue. We continue
our proactive site acquisition and permitting initiatives. We have a pipeline of permitting of over 2000 sites,
which includes 393 building plan approvals ready to be executed when triggered by anchor tenancy,
significantly reducing the time between demand confirmation and revenue realisation. We are also in an
exploration phase in terms of power-as-a-service and security value-add offerings to our customers.
On a reported basis, Swiftnet achieved an EBITDA of R230 million, at a 71.4% EBITDA margin. The
decline by 4.3 ppts in EBITDA margin compared to the comparative prior period, is attributable to the
implementation of the refined property operating cost allocation methodology during the second half of
the prior financial year as applied prospectively and as reported on at yearend. On a normalised basis,
including the impact of this new methodology in the comparative prior period, EBITDA increased by
5.5% and the EBITDA margin improved by 4.2 ppts from the adjusted 67.2% to 71.4%.
Consumer and Small Business (CSB) performance impacted by tough trading environment
Mobile data traffic grew by 12.4% to 263 petabytes supported by a 2.0% growth in Mobile broadband
subscribers to 10.7 million, using on average 9.1 GB per month and at a 13.5% increase in consumption
for the year. In addition, our post-paid customer base grew by 8.0% to 2.8 million subscribers. While our
pre-paid base grew by 1.0 million subscribers to 14.5 million, at a healthy growth rate of 7.7%. Our stated
intent was always to lead with data and disrupt in voice, however, voice minutes declined by 9.1% year
on year as traditional circuit-based voice traffic migrates to OTT platforms.
As we continue to drive industry leading propositions to our customer base, we have provided an effective
price reduction in data, during this abnormally high inflationary environment, of 14.8%.
CSB revenue remains under pressure, declining by 4.2% to R6 248 million as a result of trading under a
tough economic environment. This was compounded by accelerated migration of legacy to next generation
technologies and competitive pressure in the mobile market.
' Our traditional copper-based voice revenues continue their downward trajectory as we
de-risk ourselves from copper-based services, which is now only 7% of total gross
operating revenue for the business unit.
' Although fixed broadband continued to decline by 10.3% year on year, as we de-risk
ourselves from copper-based services, this translated to a decline of only 2.9% when
comparing Q1 FY2023 with Q4 FY2022. This is due to the aggressive play in FTTH, as it
begins to gain prominence against the traditional copper-based DSL services, driven by
a 37.5% growth in fibre subscribers. We held prices flat after the prior years' downward
adjustments.
' SMB fixed-line performance remained under pressure with this segment acutely bearing
the brunt of the tough economic conditions with a year on year revenue decline of 25.4%.
This was in addition, to the already established trend of copper-based services migrating
to mobile and alternative technologies. Our own migration to newer fibre technologies
continues to gain pace as we de-risk our copper-based services, where we witnessed an
increase of 36.1% in the fibre broadband customer base. The result is evident in a
deceleration in overall broadband revenue declining to only 2.8% in Q1 FY2023 vs Q4
FY2022. We are further looking at upscaling our fibre uptake in order to provide a platform
for both Cloud and Adjacencies in generating alternative revenues to de-risk the decline
in total fixed-line revenue.
Total Mobile revenue declined by 2.0% to R5 238 million, due to the continued provision of value-
compelling propositions and driving data consumption, as a result of consumers continuing to be under
severe economic pressure, which include but are not limited to fuel price increases, interest rate
adjustments and the suspension of the Covid-19 social relief of distress grants for two months.
Consequently, we kept our pricing and, in some instances, reduced it. Furthermore, we have not yet
effected pricing adjustments for two years on our post-paid base. Our medium-term ambition is that we
will continue to hold a pricing advantage while seeking to continue to attract customers, as evidenced by
a 7.8% total mobile subscriber growth in the current quarter, and re-establishing trajectory parity in service
revenue.
In the post-paid segment, even though we saw a decline in post-paid service revenue of 8.8% on a year
on year basis, as this segment exits the Covid-19 lock down period, it has held flat for the first time for the
last two consecutive quarters. The cumulative investment in the device sales strategy in this segment is
now beginning to materialise. Consequently, although it has a negative impact on free cashflow, the device
sales strategy supported the recovery of our post-paid base positively with handset revenue increasing by
17.6% to R827 million. We have introduced post-paid contract options that now include a 36-month
contract period, affording more favorable price points for the consumer as the foreign exchange impact
significantly drove absolute prices of devices upwards. We further launched the new value compelling
post-paid packages as we build on the continued trend to rebalance the service revenue composition
between post-paid and pre-paid. These packages will enhance the industry pioneering FreeMe range,
namely the Infinite and FlexOn suite of products.
In the pre-paid segment, our revenue was relatively flat year on year, whilst we have provided significantly
more value to the economically stretched customer. However, we saw a moderate increase in service
revenue from Q4 FY2022 to Q1 FY2023 of 0.6%. Under intense competition, we still provide the most
compelling value propositions on the pre-paid LTE segment. Furthermore, in enabling the customers'
propensity for enhanced value in support of OTT communication, we have launched specific WhatsApp
bundles ranging from R5 to R100, including Unlimited daily, weekly and monthly options. We are also the
first to introduce a true pre-paid off-peak Unlimited data bundle at R229.
We are leveraging off our industry forerunner customer value management (CVM) proposition of Mo'Nice
and bolstered it through deeper segmentation, accelerated customer engagement and interfacing on a
more real time basis to drive days on network and consumption through deeply discounted private pricing
customer value propositions. The effectiveness of our CVM tools continues to gain traction which now
accounts for 40% of our pre-paid revenue. We have seen a 100% increase in 'days-on-network' for
customers who have been offered and subscribed to this private pricing facility.
We continue to expand our presence in the Mobile Business segment, with service revenue growth of
15.9%. We continue to leverage off the government contract for mobile services, commonly known as
RT15 as we expand our incursion into this market segment.
Q1 FY2023 Mobile service revenue declined 3.6% year on year to R4 281 million, despite a 7.8% year
on year growth in active subscribers to 17.3 million at a blended ARPU of R88.53.
' Post-paid ARPU was R208.50, having declined by 5.7% year on year, but by 1.8% only compared
to Q4 FY2022, as we are now levelling towards our pre-Covid-19 era. Furthermore, as the post-
paid base recovers, we have now seen an increase, in post-paid service revenue as a contribution
to overall service revenue, by 2 ppts and breaching 40% for the first time in over a year.
' We are witnessing pre-paid ARPUs holding in our target range of R60-R70.
We remain encouraged by the growth in our non-connectivity/application services, where we witnessed a
double-digit growth with an emphasis on financial services, gaming, and content. New non-connectivity
revenue increased by 15.3% to R296 million.
' Our airtime advance product remains a significant contributor to our financial services revenue
growth as we refine and deepen our knowledge about our pre-paid customer behaviour and as
we extend our nano loan services to this base. We advanced approximately R791 million in airtime
amounting to 27% of the recharges.
' Our payments solutions platform, namely Telkom Pay and the Mobile point of sale solution,
operated via WhatsApp, and an App, is currently active and is being used by subscribers although
it's at a very nascent stage.
The CAPEX investment reduced by 35.2% year on year as we leveraged off the front-loaded CAPEX
already incurred in the prior two years, as a result of the temporary spectrum. Our spend to date of R346
million enabled improved capacity and coverage with 7 350 integrated base stations, representing a 10.6%
year on year increase in base stations. We front loaded the expenditure in anticipation of the spectrum
deployment, enhanced our IT platforms and seeded the network with 5G infrastructure.
The availability of some of the 800MHz spectrum on a national basis is dependent on the completion of
the broadcast digital migration. Following the Constitutional Court judgement, we expect the Minister of
Communication and Digital Technologies to release a new timetable for the broadcast digital migration
and ICASA to align the payment of the balance of the auction fees to its completion. We continue to co-
ordinate with the broadcasters where necessary and deploy the 800MHz where there is availability.
Q1 FY2023 mobile EBITDA margin contracted by 5.4 ppts to 23.0% emanating from reduced topline
performance, higher handsets costs and the impact of load shedding on roaming costs. This was offset
by continuously optimising our roaming costs, but it tempered the glide path we have seen of late, which
was further compounded by the returning of the 700 MHz spectrum provided by ICASA for the Covid-19
temporary relief. As a result, the Mobile cost to serve ratio remains steady around the 28% mark. The
EBITDA margin decline of 5.4 ppts; 2.3 ppts of it can be ascribed to the specific initiative of the recovery
of our post-paid base, evidenced by the growth in this base by 8.0%.
We have now embedded our second roaming partner, albeit in the selected areas and we are now able to
roam at lower costs. In addition, where we are able to deploy sub 1GHz spectrum, with at least 36% of
our sites now radiating in this band, we have seen a reduction in roaming costs together with enhanced
coverage and improved customer experience with average throughput speeds increasing by 50%.
BCX IT business recorded growth after a challenging period
BCX IT business delivered a good performance for the second quarter in succession, after a challenging
period that was negatively impacted by subdued expenditure by corporates and constraints in the global
supply chain of ICT products. The investments in core capabilities and new operating model implemented
two years ago are starting to yield results.
The IT business benefitted from the easing of global supply chain constraints together with an increase in
deal pipeline and win ratio resulting in revenue growth of 2.6% to R1 760 million. IT Hardware and Software
business, which has used relationships with global OEMs to assist in material planning and pre-build of
orders to improve fulfilment, grew revenue by 11.7%, as orders carried over from the previous quarter
were fulfilled, in line with the improvement of global supply chain constraints. Information Technology
Services revenue grew by 2.7%. Significant growth came from the cybersecurity business and the cloud
business. The growth in the cybersecurity business follows investments made during the previous year in
Security Operations Centre, Incident and offensive security response capabilities. Although the cloud
business experienced good growth, management will put specific focus on this business as South Africa
is experiencing accelerated move to the cloud by corporates. The SAP business returned to growth on the
back of new deals finalised, and significant pipeline being created as organisations move to newer SAP
technologies. The business also experienced a significant uptake in demand for Cloud advisory/consulting
services, from across the customer base.
Converged Communication has seen a decline of 9.6%, which resulted in a top-line performance of R1
641 million. The business unit is in the fourth year of a five-year migration plan from legacy solutions to
next generation solutions. Part of the revenue decline is in line with this migration plan. Traditional Fixed
Voice revenues are showing a predicted year on year decline, however during the first quarter the portfolio
tracked marginally above plan due to higher than predicted usage and adoption of subscription-based
VoIP services.
Data revenues declined due to a drive by the business to accelerate migration away from copper-based
services. With the increase in adoption of Hybrid Cloud services, traditional data customers are shifting
away more rapidly from premium MPLS services and adopting new SD-WAN technologies that are driving
a shift to lower ARPU broadband services. With the accelerated migration, the business may exit copper
services sooner than originally planned.
Overall BCX revenue declined 3.7% to R3 401 million in the first quarter. The easing of global supply chain
constraints and deal pipeline improvement signals a positive outlook for the year ahead.
The continuous drive for efficiencies along with the turnaround in IT has produced an EBITDA
improvement of 15.6% to R445 million. Margin expansion of 2.2% delivered in the quarter resulted in an
EBITDA margin of 13.1%. BCX has been set up to deliver on expectations for the year with a strong end
to the first quarter of the year. We aim to continue driving improvements and performance for the remainder
of the financial year.
Unlock value for shareholders
The value unlock strategy, which was adopted following the realisation that Telkom's market capitalisation
is not representative of its intrinsic value and remains on course. The Board approved the legal separation
of Openserve, following the completion of a balance sheet and asset allocation exercise. Effective 1
September 2022, Openserve will become a 100% subsidiary of Telkom SA SOC Ltd.
The Capital Markets remain volatile and unattractive for a new listing, and we have therefore made
substantial progress in considering other strategic options relating to Swiftnet. Shareholders will be
advised at the appropriate time of the Board's final decision relating to the Swiftnet value unlock.
Discussions between Telkom SA SOC Limited ('Telkom') and MTN Group Limited ('MTN')
On 15 July 2022, Telkom and MTN announced that they have entered into discussions in relation to MTN
acquiring the entire issued share capital of Telkom in return for shares or a combination of cash and shares
in MTN. Discussions are at an early stage and still in progress.
Given the price sensitive nature of this matter, Telkom is trading under a cautionary announcement and
shareholders will be updated on the developments at the appropriate time through the JSE's Stock
Exchange News Service (SENS) platform.
SIU investigation
Telkom has approached the High court to declare the proclamation on the Special Investigative Unit
(SIU) invalid. Telkom contends that the SIU has no jurisdiction over it.
The Board considered the likely precedent this proclamation would set and has opted to protect the
organisation. Telkom consistently upholds the principles of good corporate governance.
Restatement of segmental information
The Q1 FY2022 segments were restated following an adoption of the enhanced information technology
model. The adoption of the enhanced information technology model resulted in some of the Telkom Group
Information Technology (TGIT) outsourced services provided by BCX being transferred to different
segments in the Group. This restructuring has resulted in a change in the composition of the BCX segment.
The restatement is in line with the requirements of IFRS8 Operating Segments.
The information contained in this trading update has not been reviewed or reported on by Telkom's joint
independent external auditors.
All numbers, percentages and year on year comparison in this update reflect Q1 FY2023 compared to Q1
FY2022 unless otherwise stated.
Centurion
2 August 2022
Sponsor: Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Quarterly financial information
The financial information in the table below has not been reviewed or reported on by Telkom's joint
independent external auditors.
(R'm) Q1 FY2023 Q4 FY2022 Q3 FY2022 Q2 FY2022 Q1 FY2022
June March December September June
2022 2022 2021 2021 2021
Group revenue 10 281 10 678 10 786 10 674 10 618
Group EBITDA (statutory) 2 334 3 049 2 881 3 227 2 751
Group EBITDA margin (%) 22.7 28.6 26.7 30.2 25.9
Group capex 1 005 2 329 1 545 2 107 1 503
Revenue breakdown
Fixed 3 494 3 891 3 743 3 861 3 843
Voice and subscription 1 092 1 168 1 193 1 331 1 363
Usage 453 493 469 543 536
Subscriptions 639 675 724 788 827
Interconnection 72 72 81 104 62
Fixed-line domestic 46 45 45 53 38
Fixed-line international 26 27 36 51 24
Data 1 994 2 135 2 034 2 068 2 038
Data connectivity 1 489 1 612 1 503 1 520 1 476
Internet access and related services 357 369 367 384 370
Managed data network services 146 152 166 161 199
Multimedia services 2 2 -2 3 -7
Customer premises equipment 269 423 356 314 314
sales and rentals
Sales 100 196 186 114 96
Rentals 169 227 170 200 218
Other revenue 67 93 79 44 66
Mobile 5 180 5 111 5 314 5 158 5 208
Mobile voice and subscriptions 1 079 1 074 1 150 1 123 1 113
Mobile interconnection 118 123 122 119 118
Mobile data 3 084 3 062 3 127 3 163 3 211
Mobile handset and equipment 827 773 861 693 703
Significant financing component 72 79 54 60 63
Information technology 1 376 1 466 1 458 1 367 1 313
Information technology service solutions 728 759 730 752 684
Application solutions 231 232 231 233 252
IT hardware and software 373 453 457 363 334
Industrial technologies 39 15 33 14 36
Significant financing component 5 7 7 5 7
Other 231 207 271 291 254
Yep 53 60 106 94 77
Gyro 178 147 165 197 177
Total 10 281 10 678 10 786 10 674 10 618
Quarterly information (Business unit stand-alone view)
(R'm) Q1 FY2023 Q4 FY2022 Q3 FY2022 Q2 FY2022 Q1 FY2022
Restated Restated Restated Restated
June March December September June
Revenue 2022 2022 2021 2021 2021
Telkom Consumer 6 248 6 249 6 544 6 441 6 519
BCX 3 401 3 836 3 506 3 409 3 530
Openserve 3 217 3 361 3 347 3 373 3 347
Swiftnet 322 301 317 349 325
EBITDA margin (%)
Consumer 13.4 16.0 17.9 20.3 17.9
BCX 13.1 12.2 15.6 13.3 10.9
Openserve 29.9 31.0 32.7 36.3 30.6
Swiftnet * 71.4 42.3 78.5 81.9 75.7
Mobile service revenue (external) 4 281 4 259 4 399 4 404 4 443
Mobile EBITDA margin 23.0 24.9 26.5 29.2 28.4
* The full impact of the new methodology was included in Q4 FY2022. On a normalised basis, including
the impact of the new methodology in Q1 ' Q4 of FY2022, the EBITDA margins are Q1 FY2022 '
67.2%; Q2 FY2022 ' 73.8%; Q3 FY2022 ' 69.9%; Q4 ' 70.3%
Quarterly operational information
Q1 FY2023 Q4 FY2022 Q3 FY2022 Q2 FY2022 Q1 FY2022
June March December September June
2022 2022 2021 2021 2021
Broadband subscribers 11 359 289 11 234 715 11 021 999 11 204 557 11 105 198
Fixed broadband subscribers 612 871 584 189 567 853 562 552 571 023
Mobile broadband subscribers 10 746 418 10 650 526 10 454 146 10 642 005 10 534 175
Active mobile subscribers 17 317 015 16 936 464 16 430 307 16 258 857 16 068 102
Pre-paid subscribers 14 534 596 14 269 139 13 839 870 13 696 236 13 490 473
Post-paid subscribers 2 782 419 2 667 325 2 590 437 2 562 621 2 577 129
Mobile blended ARPU (rand) 88.53 89.94 91.45 92.40 94.31
Pre-paid ARPU 64.77 65.67 66.68 67.21 67.84
Post-paid ARPU 208.50 212.47 215.49 216.84 221.11
Traffic
Fixed broadband (petabytes) 452 428 428 429 380
Mobile broadband (petabytes) 263 245 246 248 234
Total fixed-line traffic (millions of 1 365 1 508 1 512 1 589 1 569
minutes)
Network
Homes passed with fibre 890 182 839 691 801 084 707 399 612 451
Homes connected with fibre 14 847 389 109 358 528 331 735 306 837
Fibre connectivity rate (%) 46.6 46.3 44.8 46.9 50.1
Mobile sites integrated 7 350 7 313 7 082 6 910 6 646
Forward looking statements
Certain financial information presented in this trading update announcement may constitute forward
looking statements.
All statements, other than statements of historical facts, including, among others, statements regarding
our strategy; future financial position and plans; objectives; capital expenditures (capex); projected costs
and anticipated cost savings and financing plans; as well as projected levels of growth in the
communications market, are forward-looking statements. Forward-looking statements can generally be
identified by terminology such as 'may', 'will', 'should', 'expect', 'envisage', 'intend', 'plan', 'project',
'estimate', 'anticipate', 'believe', 'hope', 'can', 'is designed to' or similar phrases. However, the absence
of such words does not necessarily mean a statement is not forward looking.
Forward-looking statements involve several known and unknown risks, uncertainties and other factors that
could cause our actual results and outcomes to be materially different from historical results or from any
future results expressed or implied by such forward-looking statements. Factors that could cause our
actual results or outcomes to differ materially from our expectations include, but are not limited to, those
risks identified in Telkom's most recent integrated report which is available at www.telkom.co.za/ir.
Telkom cautions readers not to place undue reliance on these forward-looking statements. All written and
verbal forward-looking statements attributable to Telkom, or persons acting on Telkom's behalf, are
qualified in their entirety by these cautionary statements. Moreover, unless we are required by law to
update these statements, we will not necessarily update any of these statements after the date of this
document, so that they conform either to the actual results or to changes in our expectations.
Date: 02-08-2022 07:05:00
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