(Bloomberg) -- Telkom SA SOC Ltd. cut its dividend and reported a slump in full-year earnings as South Africa’s biggest provider of fixed phone lines struggles with a decline in its traditional voice services.

The Pretoria-based company reduced the annual payout to shareholders by 16 percent to 3.55 rand a share, it said in a statement Monday. Earnings before interest, taxes, depreciation and amortization for the year ended March fell 3.6 percent to 10.5 billion rand ($843 million).

The carrier reported a 47 percent increase in service revenue from mobile customers to 5.15 billion rand, supporting Chief Executive Officer Sipho Maseko’s push into new revenue streams to sustain the company. Telkom started its mobile unit, the country’s fourth-biggest with just over 5 million subscribers, to bolster its service offering to consumers.

“Telkom is shifting towards new revenue streams, such as mobile, data and the Internet-of-things,” Maseko said in the statement.

The stock was up 2.2 percent at 9:06 a.m. in Johannesburg.

Telkom, 40 percent owned by South Africa, had lost almost one-third of its value over the past year amid political uncertainty and speculation that the government will reduce its stake.

To contact the reporter on this story: Loni Prinsloo in Johannesburg at lprinsloo3@bloomberg.net

To contact the editors responsible for this story: Rebecca Penty at rpenty@bloomberg.net, Kim Robert McLaughlin, Ana Monteiro

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