04 September 2020

Telkom chief executive Sipho Maseko took home R1.3 million less during the year ended in March than the R23m he took home last year.

The company said in its annual report that Maseko’s pay included a guaranteed salary of R8.3m, unvested shares of R2.4m, and R10.5m in vested shares. Telkom also said that he did not receive a short-term incentive during the year under review.

However, the group paid R76m to prescribed officers, including R26m to its chief investment officer, Deon Fredericks. Last year they received R63m.

MTN chief executive Rob Shuter took R58m while Vodacom’s Shameel Joosub received R43.4m which amounted to R23.9m after tax.

Telkom, which operates BCX, Gyro, Telkom Consumer, Telkom Small and Medium Business and OpenServe recorded a 3 percent revenue growth to R43bn despite a 22.2% decline in fixed-voice revenue.

Mobile service revenue increased 54.4% with fibre-to-home connectivity improving to 48.2 % from 38.4% a year earlier. Active mobile subscribers grew 23% to 12m while mobile broadband numbers rose 28% to 8.2m. “Our challenge for the year was the impact of the fixed-voice revenue on group earnings before interest, taxation, depreciation and amortisation (Ebitda) as the decline intensified,” said Maseko. “The growth in new revenue streams, which have lower margins, was not sufficient to offset the decline caused by high margin fixed-voice on group Ebidta.” He added that as revenue mix evolved over time, the group expected fixed-voice revenue to decline and the contribution from the mobile business, with improved Ebidta, to increase and offset the impact.