Telkom’s data-led strategy is paying off, with the group reporting solid earnings and growth across key metrics in the six months ended 30 September.
According the telecommunications company, the results continue to build on its previous strong performance and demonstrate the competitive advantage of the group’s data-led strategy.
Telkom says strong demand for connectivity drove a 26.7% surge in mobile data subscribers to 18.5 million, while the fibre connectivity rate climbed to 52%.
Headline earnings per share rose 16.4% to 305.6c, underscoring the momentum behind Telkom’s shift toward a data-centric growth strategy.
In a statement, Telkom says the group continues to leverage 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.
It notes that 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.
According to the company, 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.
The EBITDA margin (EBITDA divided by revenue) was up one percentage point to 27.2%, slightly above the top end of the group’s medium-term guidance range of 25%-27%.
On track
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, the company notes.
The wholesale infrastructure connectivity provider and 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%, says the telco. 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.
The firm says mobile service revenue increased by 7.9%, continuing to outpace market growth rates. Mobile data subscribers grew by 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 and fibre subscriber growth of 8.5%.
The competitiveness of the mobile business is demonstrated by service revenue growth for the 11th consecutive quarter to June 2025, since its establishment 15 years ago, says Telkom.
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 cyber security services revenue increased by 10.4%.
Revenue declined by 4.4%, primarily due to a decrease from converged communications. Encouragingly, says Telkom, annuity-based revenue remained stable.
It adds that 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 305.6c, 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.
Controlling cost
“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.
He adds: “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 expect to maintain service revenue growth at mid-single digits for the mobile business, and the 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.”
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