Q3 2022 Telkom SA SOC Ltd Trading Statement Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jonathan Kennedy-Good - JPMorgan - Analyst : Good afternoon. Just two questions from me, please. In terms of your mobile broadband customers, those came off marginally quarter on quarter, it seems, to just under 10.5 million. Just wondering is there particular comparative intensity that has worsened during the period from competitor offerings in that space? And how you see that evolving over the next six months. And then also, if you could remind us of what your free cash flow targets were for the full year and whether that date has any impact on that.

Question: Nadim Mohamed - SBG Securities Limited - Analyst : Good afternoon, everybody. Two questions from my side. Just wonder, we saw an acceleration in fixed voice and subscription declined by 20% year on year. So like to get a sense from you as to what happened there, what was driving the acceleration. I know it's been declining for quite some time, but I just would like to understand why it was accelerating. And then second, just on fixed data. Could you give us some sense on the change you are seeing in the market? So obviously, you've got your fiber business that are growing relatively fast, but your portfolio declines in some of the other areas. But I'd just like to understand the decline that we saw in this quarter, was it driven a lot by pricing, by volume, by competitive intensity? Just to get a sense of what's going on there. Thank you.

Question: Nadim Mohamed - SBG Securities Limited - Analyst : Yes, thank you. And then just a question on fixed data. Just want to get a sense on what is driving the dynamic there, either on volumes or are you seeing any particular competitor coming very hard in this space?

Question: Vikhyat Sharma - RMB Morgan Stanley - Analyst : Thanks for the opportunity. My question is more around the mobile service growth recovery. Clearly there might be a big base of COVID that you might be lapping, etc. But the whole idea, it seems like the growth there hasn't been, let's call it, living up to the expectations. Because three months ago, you kind of indicated that second-half growth would pick up. That hasn't seemed to be the case. So I think is pricing going to come into play or have the other competitors been more competitive there? I mean, just A, in terms of competitive landscape? And B, Telkom's own positioning on the price side now. I know you haven't kind of reaped the benefit of this new roaming agreement. So once you reap the benefit, is it basically that you're going to take the pricing let down again to create more subscription or more additions into that prepaid base? Or are you kind of happy with your pricing? I'll leave it there.

Question: Vikhyat Sharma - RMB Morgan Stanley - Analyst : Sure. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 07, 2022 / 2:00PM, TKGJ.J - Q3 2022 Telkom SA SOC Ltd Trading Statement Call

Question: Nicole Agar - Truffle Asset Management - Analyst : Thank you. Good afternoon, everyone. Two questions from my side, please. Firstly, the impression after listening to your interim results was that you expected mobile revenue growth for the second half of this year to at least meet or exceed your 6%-odd revenue growth for the first half of the year. Is that a forecast that you are still comfortable with? Comfortable is a word you've used quite a lot in this call, so I'm just checking if that is still in your sights. And then the second question I have is at interims, you spoke of perhaps entering into some strategic partnerships, especially on the IT capability side, because there was a sense that not only was there a chip problem, but there was also perhaps a capability bump-up needed with an international alliance. And can you give us an update on that? Thank you.

Question: Nicole Agar - Truffle Asset Management - Analyst : You did. Thank you very much.

Question: Visil Joubert - Oyster Capital Investments - Analyst : Thank you very much for the opportunity. I just have one question. On the mobile side, I suppose the revenue came in below your expectations. Can you maybe discuss if the miss was driven on the subscriber side or on the [oprey] side? And the reasons for that miss would be appreciated. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 07, 2022 / 2:00PM, TKGJ.J - Q3 2022 Telkom SA SOC Ltd Trading Statement Call

Question: Visil Joubert - Oyster Capital Investments - Analyst : Yes, you have. Thank you very much. And sorry, just a follow-up, if I may. Does that mean if you just -- I suppose it was a bit of a misstep offering these packages as you just moved the consumers from a higher ARPU to a slightly lower ARPU product. Is it fair to say if you don't offer these packages again that you expect the ARPUs to go back to normal or to a higher level?

Question: Jonathan Kennedy-Good - JPMorgan - Analyst : Thank you. Just one more on the dividend policy. Can you just give us a refresher on what you expect may be your policy going forward and when we will hear exactly what to expect?

Question: Nadim Mohamed - SBG Securities Limited - Analyst : Just two questions from my side. Just on your CapEx guidance, I remember at the last quarter, I think you were guiding to the lower [ZAR7 billion]. I think that your run rate is about 5.2% if my numbers are correct. Are you still holding to that guidance for the year? And then secondly, just on your Value Unlock program, I'd just be curious where you are at in terms of Openserve. How far are you in terms of structurally separating it from the rest of the business? Anything you can share in terms of the Value Unlock program there? Thank you.

Question: Nadim Mohamed - SBG Securities Limited - Analyst : Excellent. Thank you so much. I'm not sure what you can share, but I remember in previous discussions around looking at various options for Openserve, including potentially a listing, is that still underway? Or does that come later on in the year or next year even?