Telkom is considering strategic options for its IT business, including a partnership, it said on Tuesday after reporting a .% jump in half-year profit.
A shopper walks past a Telkom shop at a mall in Johannesburg on February . ReutersSiphiwe Sibeko
Telkom s IT business, which offers enterprise solutions for companies, has been under pressure due to sluggish investments by firms hit by the pandemic, and global supply chain issues and chip shortages.
The partly state-owned telecom operator said the intervention in the IT business would not be limited to a strategic partnership only. This is aimed at addressing capacity and capabilities in BCX and ensure sustainable growth going forward, Telkom said.
BCX, Telkom s information and communications technology subsidiary that owns and operates the IT business, saw its revenue decline by .% to R.bn in the six months ended Septmember.
Its headline earnings per share Heps – the main profit measure in South Africa, rose to .c from c a year earlier, driven by lower finance charges and fair value movements, an accounting term that refers to a change in the carrying value of an asset.
Group earnings before interest, tax, depreciation and amortisation EBITDA, a measure of operating profit, rose .% on cost management, while group revenue was flat at R.bn as growth in the mobile business and masts and towers unit was offset by the IT business and a decline in the fixed-line unit.
Telkom s consumer-focused division, which includes its mobile business, grew with mobile service revenue rising .% and mobile data revenue up .%.