Telkom South Africa has reported just over 10% in rising profit during the first half of the year.
The improvement came from the company’s mobile business division, which set-off losses recorded in the fix-line unit. The company reported over 50% in revenue growth to R3,6 billion in the six month period ending in September.
However Telkom’s BCX subsidiary has not done so well as a result of a depressed economy among other things. Last week, Telkom’s BCX business announced that it would be retrenching close to 700 employees.
Telkom CEO, Sipho Maseko says constraints to BCX have largely been due to the ailing economy.
“The most important thing is how does management respond to a difficult environment and I think they’ve begun to look at their costs; they’ve begun to look at their portfolio, which businesses make sense for the future, which businesses don’t make sense. Obviously one of the most difficult things to do, which we’re never pleased about is to look at if you are correctly staffed so that you can be able to continue to be a profitable business, number 1. Number 2 provide the right type of services to your customers,” says Maseko.
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