Highlights:

• Group revenue up 3.4% to R22.104 billion
• Group data revenue up 7.9% to R13.072 billion
• Group EBITDA up 7.4% to R6.023 billion
• Group EBITDA margin up 1.0 percentage point to 27.2%
• Mobile data subscribers up 26.7% to 18.5 million
• Fibre connectivity rate up 2.3 percentage points to 52.0%
• Headline earnings per share up 16.4% to 305.6 cents

Telkom SA SOC Limited today published quality financial results for the six months ended 30 September 2025 (H1 FY2026) that continue to build on our previous strong performance and demonstrate the competitive advantage of the group’s data-led strategy.

Telkom’s commitment to delivering quality earnings and growth from its unique position as the backbone for South Africa’s digital future is reflected in sustained performance across all key financial metrics.

The Group continues to leverage the advantage of its extensive fibre footprint consistently built over a long time, to drive growth through strong mobile offerings in service and data and continues sharpening its competitive edge through the OneTelkom approach.

Double-digit growth in mobile and fibre-related data revenue underscored the success of the data-led strategy. Mobile data revenue increased by 10.3%, fibre-related data revenue grew by 12.3%, and BCX’s fibre-related data revenue within converged communications improved by 13.8%. Group data revenue accounted for 59.1% of total revenue.

Disciplined cost management strengthened operational performance. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 7.4% – a key indicator of core operational performance and structural cost improvements – and the EBITDA margin (EBITDA divided by revenue) was up 1.0 percentage point to 27.2%, slightly above the top end of the group’s medium-term guidance range of 25%–27%.

Telkom Group Chief Executive Officer Serame Taukobong says the ongoing focus on operational excellence across business units and the OneTelkom approach drove the group’s sustained performance.

“These results demonstrate that we are well positioned to deliver on the commitments of our medium-term objectives. Additionally, the results reflect the determination and commitment of all our employees, who are relentlessly focused on executing our data-led strategy.”

Openserve continued to drive efficiencies through network simplification and energy transformation. South Africa’s leading wholesale infrastructure connectivity provider and largest open-access network saw overall revenue grow by 2.7%, underpinned by growth in the enterprise, carrier services and broadband segments. Fibre-related revenue increased by 10.1%. Homes passed reached 1.5 million and homes connected reached a market-leading 52%. The EBITDA margin was resilient at 33.3%.

Telkom Consumer increased operating revenue by 6.4% to R14.25 billion, driven by advanced data analytics, optimisation of the product portfolio and expansion of distribution channels. Mobile service revenue increased by 7.9%, continuing to outpace market growth rates. Mobile data subscribers grew by an exceptional 26.7% to 18.5 million, now representing 75.3% of the total mobile subscriber base of 24.5 million. Fibre-related data revenue increased by 10.8% due to a 4.1% uplift in average revenue per user (ARPU) and fibre subscriber growth of 8.5%. The competitiveness of the Mobile business is demonstrated by market leading service revenue growth for the 11th consecutive quarter to June 2025, since its establishment 15 years ago.

BCX saw EBITDA margin improve to 9.9% for the half, compared with 6.5% in the first quarter. Fibre-related data revenue grew by 13.8% while cybersecurity services revenue increased by 10.4%. Revenue declined by 4.4%, primarily due to a decrease from Converged Communications. Encouragingly, annuity-based revenue remained stable. Sequential improvement in the second quarter followed strategic actions recommended by the special task team, which included cost transformation, portfolio optimisation and digital enablement.

Taukobong says the group’s financial position remains strong, with net debt to EBITDA stable at 0.7x after the settlement of R4.834 billion in interest-bearing debt during the period. Headline earnings per share grew by 16.4% to 305.6 cents, largely driven by an increase in operating profit and supported by finance charge savings from the debt repayment. Free cash flow is stable at R724 million, reflecting disciplined and sustainable cash generation.

“Looking to the remainder of the financial year, we are encouraged by the performance we achieved in the first half,” says Taukobong. “Delivering quality earnings and growth through focusing on our targets and medium-term guidance remains our top priority. Our data-led strategy will continue to act as a catalyst for growth, as we strengthen our unique position as the backbone of South Africa’s digital future, and as we continue sharpening our competitive edge through the OneTelkom approach.” said Taukobong

He added: “The country’s economic growth is expected to be subdued in 2025. Intensifying competition in both mobile and fibre, coupled with muted corporate ICT spending underscore the importance of maintaining our operational discipline and strategic focus.”

“In the second half, revenue will remain a key area of focus across the Group and we will continue with our sustainable cost-optimisation efforts. We will continue to leverage the unique advantage of our extensive fibre footprint to drive growth through our strong mobile offerings in service and data.

“We expect to maintain service revenue growth at mid-single digits for the mobile business, and EBITDA margin will moderate slightly due to the seasonality of investing in the summer campaign and the festive season. Openserve will continue to drive revenue growth in fibre to the home as well as in the key growth areas of the enterprise segment and carrier services. BCX will carry on with disciplined execution of its strategic actions and will focus on growing margin-accretive revenue.

“We will continue to act decisively in honing high performance by making the most of our strengths as a well-established infraco.”