Telkom | Structured for growth | Proxy voting
Telkom's (TKG) share price has increased c.288% since FY'12. The Group is the best performer in the local telco sector due to improving governance. Operationally, Telkom Mobile has offset the Group's declining legacy fixed line revenues. Without the success of Telkom Mobile, the Group's revenue would be c.26% lower in FY'19. Legacy fixed line revenue has declined ZAR7.5bn since FY'12. Nevertheless, the Group managed to increase its total revenue by ZAR8.7bn. By normalisation of the government's control over Telkom, the company attracted and retained talented management. Telkom management has independently implemented an effective turnaround and growth strategy, including making difficult changes such as the 57% reduction in the Group's employee headcount since FY'12.We rank TKG's corporate governance as ‘good' with a score of 3.49 out of 5 (FY '16: 3.17). SA sector peers MTN and Vodacom (VOD) score 3.11 and 3.67 respectively. Based on our ESG risk framework, TKG's ESG risk exposure is “moderateâ€, with a residual risk rating of 3 out of 5 (MTN: 3.3, VOD: 3).
Telkom SA SOC is a technology company. Co.'s services and products include: Fixed-line retail voice services to post-paid, pre-paid and private payphone customers; Fixed-line customer premises equipment rental, sales and services both voice and data needs; Interconnection services; Fixed-line data services, including domestic and international data transmission services; Data center operations which includes e-commerce, application service provider, hosting, data storage, e-mail and security services; W-CDMA, a 3G next generation network; Mobile communication services, including voice services, data services and handset sales and; Other services including directory services.
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