The mystery of Telkom's strategy solved
Telkom's CEO Sipho Maseko says he has the group's strategy to move forward, following a year of confusion. Following a year of confusion regarding Telkom’s future strategy, having seen a merger deal with KT Corp blocked by government, the group’s CEO, Sipho Maseko finally provided clarification on its plans. Having blocked the merger deal with the Korean based operator in May 2012, cabinet asked the minister of communications, Dina Pule, to report back to it about all the options that were available for Telkom.
However, last week (14 June), Maseko told BusinessTech: “I have the strategy, the strategy is mine. He pointed to the appointment of Dr Miriam Altman as head of strategy of Telkom Group, to drive the group’s plans moving forward.
Telkom delivered yet another disappointing set of results for the year ended March 2013, highlighted by a 73.2% decline in headline earnings per share to 87.0 cents. Group operating revenue decreased by 1.7% to R32.501 billion (2012: R33.079 billion).
The board also took the decision to impair the carrying value of the assets of the group by R12 billion for the year ended 31 March 2013. Maseko pointed to “severe” challenges in the group’s revenue and cost structures.
“This is not lost to the team,” he told media, investors and analysts in Sandton. The CEO also highlighted the challenge it faces with in its relationship with government, which has a 39.8% direct ownership of Telkom.
He said that there is a “big effort” to converge and align both parties’ interests, with government seeing Telkom has a key player in its national broadband plans. Maseko painted a broad picture of where the company would look to improve its financial position in the financial year ahead, including the maximising next generation networks (NGN) efficiencies and returns, effective management of 3rd party spend, customer service effectiveness, and its current staffing, which accounted for in excess of 30% of its revenue base in the reporting period.... Read the full, comprehensive news article and discuss at BusinessTech