Telkom directors have met with Minister of Communications Dina Pule following the telecom’s revelation of an 80.6 percent H1 profit drop, as part of wider stakeholder engagement to devise a strategy going forward.
The Minister met with the board members of Telkom on Monday, the Department of Communications announced, in order to discuss plans and strategies to be implemented in the coming period as the operator struggles to keep afloat on the market.
“Today’s engagement went very well. I’m confident that the board of Telkom will help the state achieve its developmental goals, while ensuring that Telkom remains commercially sustainable,” the Minister commented following the meeting.
Earlier this month, Telkom released its results for the first six months of 2012, revealing an 80.6 percent decline in profits for the one-time market dominator, as the consumer base in South Africa moves away from fixed-line telephony to the mobile sphere.
The mainly fixed-line operator is 39.8 percent government-owned, with the state pension fund owning a further 10 percent stake in the telecoms company.
Announcing the H1 results on November 19, CEO Nombulelo Moholi – who recently announced her resignation from the helm of Telkom, with a six month notice period to serve – said that the operator would turn to its various stakeholders in the effort to devise a strategy to rescue the struggling company going forward.
“We are taking action to ensure that we execute our strategy to build a stable, healthy company going forward… In line with this commitment, engagement with government and all other stakeholders is critical to charting a successful way forward,” said Moholi.
Monday’s meeting saw Telkom meet with the Minister as part of this stakeholder engagement process, in order for the Minister to “update them [the board] about Government’s strategic priorities,” and further, for her to “listen to their plans”.
The Department of Communications added that: “The meeting also served to strengthen the ties between government and the board of Telkom.”