Telkom chairman Jabu Mabuza has followed the South African operator’s chief executive officer (CEO) Sipho Maseko in buying shares in the company.
In a statement to shareholders Telkom said Jabu Mabuza, chair of the board since last year, had bought nearly ZAR500,000 (US$500,000) in shares on July 15.
HumanIPO reported last week Maseko, who was appointed CEO in March after a five-month hunt for a new chief, had bought almost ZAR1 million (US$100,000) in shares, with the value of the company’s stock having increased by almost 60 per cent since a 52-week low in May.
Telkom published annual results in May, which showed a 1.7 per cent drop in operating revenue and 73.2 per cent in headline earnings per share (HEPS).
The operator had published a warning in April there would be at least a 20 per cent drop in HEPS, while it also confirmed an impairment of its legacy network to the value of ZAR12 billion (US$1.2 million).
Telkom also saw its fixed-line penetration rate drop to 7.3 per cent – 5.2 per cent down on March 2012 – while there were reports it was set to cut staff numbers and dispose of non-profitable assets as it looked to cuts costs.
