NOT ALL BAD...

Finweek English Edition - - INVESTMENT -

One thing we al­ways have to do when in­vest­ing is to leave emo­tions out of it, and Telkom is a com­pany that most peo­ple have mas­sive neg­a­tive emo­tions about. But we need to shed th­ese feel­ings and fo­cus on this com­pany, which seems to be do­ing a lot right. Re­cently, a dead tele­phone at my home was f ixed within four hours of be­ing re­ported with con­stant up­dates via SMS. Telkom is se­ri­ously try­ing to get re­ally fast broad­band into homes and of­fices and is cut­ting op­er­at­ing costs. It all looks good, but one prob­lem does re­main: Gov­ern­ment as ma­jor­ity share­holder – will it al­low the re­trench­ments and in­no­va­tion that Telkom needs to do to re­ally be­come com­pet­i­tive?

Telkom SA SOC of R1bn over a 3- to 5-year pe­riod.” This growth would be via ac­qui­si­tions and new busi­ness ar­eas. Con­sid­er­ing that rev­enue for the year ended June 2013 was un­der R100m, that means that it is aim­ing for a ten­fold in­crease in rev­enue over the next three to f ive years. As­sum­ing Poynting does it in f ive years, that amounts to an­nual com­pounded growth of some 60% a year, which is not im­pos­si­ble but a huge ask. If Poynting man­ages it, this will be a to­tal game-changer for the busi­ness. Wait and see how it is do­ing af­ter year one and two be­fore you get ex­cited about this plan.

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