Group Highlights:

• Group EBITDA up 6.5% to R2.8 billion.
• Group EBITDA margin expanded by 1.4 percentage points to 25.9%.
• Group revenue up 1.1% to R10.8 billion.
• Group data revenue rose 7.1% to R6.4 billion, now comprising nearly 60% of Group revenue.
• Mobile data subscribers increased by 27.5% to 17.2 million.
• Fibre-connected homes grew 17.5%, reaching a connectivity rate of 51.1%.

Centurion, 5 August 2025 – Telkom SA SOC Limited today announced solid financial results for the quarter ended 30 June 2025 (Q1 FY2026), underscoring the continued execution of its data-led strategy and disciplined focus on operational efficiency. The Group sustained positive momentum from the previous year, delivering strong growth in profitability and expanding its digital footprint across South Africa.

Group EBITDA growth was supported by cost efficiencies and revenue growth in data services. The Group’s EBITDA margin expansion highlighted operational efficiencies. Excluding non-core property sales, the margin slightly rose to 24.7% underscoring the strength of the underlying operations.

Group revenue increase was lifted by strong growth in mobile and fibre-based data services. Data revenue, which now contributes nearly 60% of total Group revenue, rose 7.1% to R6.4 billion, reflecting the success of Telkom’s focused strategy to lead in South Africa’s data economy.

“These results affirm the resilience of our strategy and the strength of our operations. We are committed to building the digital backbone of South Africa through affordable connectivity, world-class customer experience, and operational excellence. Our data-led transformation journey is creating tangible societal value, as we connect more people and enable digital inclusion”, commented Serame Taukobong Group CEO of Telkom.

Telkom Consumer delivered strong growth, increasing mobile service revenue by 7.8% and outpacing market trends. The number of mobile data users surged 1.9 million during the quarter, now accounting for 72.1% of total subscribers. This was driven by compelling value propositions, enhanced customer experience, and improved channel performance

Openserve continued its connect-led growth strategy, with fibre data revenue up 11.3% and homes passed increasing by 12.6% to 1.4 million. The number of connected homes rose 17.5% to 723,337, achieving a connectivity rate of 51.1%. Fibre-related revenue now accounts for 86% of Openserve’s total revenue, which increased by 2.8%, reflecting the business’s pivot to future-ready infrastructure and long-term sustainability.

BCX revenue declined 8.3% as the business continues with its planned transformation to shift away from legacy voice and low-margin hardware and software sales. Fibre-related data revenue now makes up 89% of total data services and grew by 6.8%, while voice services remained stable. BCX also achieved a R48 million reduction in impairments due to tighter credit controls, and its cost restructuring is tracking in line with expectations.

“Our solid performance this quarter is a clear reflection of Telkom’s strategic focus on data-led growth and operational excellence. We are creating value across the Group by modernising infrastructure, simplifying operations, and delivering customer-centric innovations. We remain committed to connecting more people, more affordably, while enhancing long-term profitability and sustainability.”

“Looking ahead, Telkom Consumer remains focused on growing service revenue through regional expansion and will continue investing in competitive value propositions, targeted campaigns and strategic network expansion,” Serame continued.

“Openserve’s connect-led strategy, clearly evidenced in this quarter’s top line growth, can be expected to accelerate the adoption of fibre-based services, while driving sustainability through ongoing network simplification and energy transformation programmes. BCX remains focused on expanding the cloud and software portfolios and driving operational efficiencies. “We are on track with our data-led journey to deliver sustained performance, actively shaping Telkom to improve returns while preserving our core strengths. We remain focused on enhancing the group’s growth trajectory and margin expansion across our portfolio in line with medium-term guidance.” Taukobong concluded.