Johannesburg - Fixed-line operator Telkom
[JSE:TKG] said on Monday it is considering acquisitions of information and communications technology companies, as it looks to offset a decline in fixed-line revenue by increasing its market share in communication and network services.
Telkom said in a presentation posted on its website that it would consider ICT acquisitions, adding that the industry would be South Africa’s biggest growth sector over the next five years.
Telkom has been burned by failed acquisitions in the past, including in Nigeria, where it recently sold its Multi-Links unit for a net loss of R1bn.
Telkom on Monday reported a 36% drop in first-half profit, as it continues to struggle with stiff competition and burdensome costs from its new mobile business.
Telkom is currently in talks to sell a 20% stake to South Korea’s KT Corp for around $600m.