Telkom has maintained solid growth, with the group reporting robust revenue and returns across key metrics in its latest results, strengthened by strong demand for mobile services and data.
The telecommunications company’s results for the third quarter ended 31 December 2025 highlight robust revenue growth, expanding profitability and strategic investments in its data-led strategy.
Its revenue increased by 1.3%, with group data revenue up 9.6% to R6 864 million, contributing 60% to total revenue year-to-date (YTD).
Mobile data revenue grew 12.9%, while fibre-related data revenue increased 8.9%, underlining the ongoing demand for connectivity. Overall mobile service revenue rose 7.2% YTD (7.6% YTD), supported by prepaid services and data uptake.
Telkom’s mobile subscriber base exceeded 25 million, with mobile data users reaching 19.3 million, representing 76.5% of total subscribers.
Prepaid subscribers grew 5.8% to 22.2 million, maintaining a stable ARPU of R61, it says.
Mobile data traffic also surged 20.4% to 544 petabytes, reflecting strong usage growth across the network.
Group EBITDA increased 8.4% to R3 237 million, with the EBITDA margin expanding to 29.1% for the quarter, reflecting ongoing cost optimisation. Year-to-date EBITDA grew 7.8%, achieving a margin of 27.9%. Consumer-focused EBITDA improved 21.4%, largely driven by mobile and fibre revenue growth, alongside disciplined receivables management.
Group CEO Serame Taukobong explains: “The disciplined execution of our data-led strategy delivered data revenue growth in the third quarter and year-to-date. Our cost optimisation initiatives continue to yield results, and being certified as a top employer for 2026 reinforces our culture and commitment to excellence."
Capital expenditure remained targeted, with R1.304 million invested in the quarter and R4.174 million YTD (capex intensity 12.6%).
The group’s investments in the quarter focused on mobile network capacity and fibre expansion, adding 150 mobile sites and connecting 30 081 homes in the quarter.
On the fibre front, the connectivity rate remains robust at 52.4%, with 786 490 homes connected, as its Openserve subsidiary continued to expand its network. Fibre-related revenue increased by 11.1% YTD, contributing to sustained growth across the fixed-line segment. Fibre expansion received R557 million.
Telkom’s capital expenditure remained focused on growth areas, totalling R4 174 million YTD (capex intensity of 12.6%).
In mobile, R676 million was invested to expand capacity and upgrade base stations.
BCX/Converged Communications revenue declined by 9.3% in Q3 FY2026 and 5.9% YTD, reflecting ongoing market pressures, but its EBITDA margin remained stable at 10.4% for the quarter.
Looking ahead, Telkom will continue to:
- Drive mobile service revenue growth, particularly prepaid, with regional expansion and network investment.
- Expand fibre connectivity and drive revenue across broadband and enterprise segments.
- Maintain cost discipline and capex focus, primarily in mobile and fibre, to sustain profitability.
- Reinforce its position as SA’s digital backbone through its OneTelkom approach.
With strong growth in mobile, fibre and prepaid services, Telkom says it demonstrates resilience and the ability to capture opportunities across SA’s evolving digital landscape.
“Executing on our Infraco strategy acting as OneTelkom, we will continue to reinforce our position as South Africa's digital backbone,” says the telephony group.
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