Struggling South African operator Telkom SA has appointed Jabulane Mabuza – a former hotel, gaming and tourism executive – as its new chairman.
His appointment is effective immediately, the state-controlled fixed-line and mobile operator disclosed…
Struggling South African operator Telkom SA has appointed Jabulane Mabuza – a former hotel, gaming and tourism executive – as its new chairman.
His appointment is effective immediately, the state-controlled fixed-line and mobile operator disclosed in a brief statement.
Mabuza has held numerous executive positions within the hotel, gaming and wider tourism sectors. A former CEO of hotel and casino company Tsago Sun, he has also served as chairman of the Casino Association of South Africa, the South African Tourism Board and the Marketing Federation for African Business.
Telkom today reported group profit for the six months ended 30 September of R547m (US$62m) – down 48.9% from the previous reporting period. The company attributed the result to a penalty imposed by the Competition Tribunal, staff salary increases and lower fixed-line revenues, partially offset by lower mobile termination rates and no impairment charge. Operating revenue was down 1.5% to R16.1bn (US$1.8bn).
Commenting on the results, CEO Nombulelo Moholi, who recently resigned from the position and is currently working out her six month notice period, said the company has reached a “pivotal crossroads” from a strategic perspective and is engaged in “constructive dialogue” with key stakeholders to determine the way forward.
“While the industry landscape remains challenging for the group we are determined to strengthen our competitiveness, improve our operating model and carefully manage our financial resources,” she said.
“Our focus will remain on utilising internally-generated funding for capital expenditure planned over the next year.”
Earlier this year South Korean operator KT Corp tried to acquire a 20% stake in Telkom for US$345m. But the South African state, which controls 50.7% of shares in Telkom, decided in late May to veto the deal.
