State-owned signal provider Sentech is faring better financially, but is not yet out of the woods.
This is based on its 2025/26 financial year (FY) results, which show the entity’s net loss after tax shrunk to R60 million, compared to R246 million in the previous financial year.
Last year, Sentech reported a net loss after tax of R246 million, noting this was primarily due to provision for expected credit loss driven by its customers’ economic challenges.
According to Sentech, the net loss reprieve represents an improvement of approximately 76%.
Other performance indicators show the company achieved a clean audit outcome with no material findings, achieved 90% against its predetermined objectives, as well as an uptick in total revenue for the period.
“Sentech has delivered a resilient performance in a challenging and rapidly-changing operating environment,” says CEO Tebogo Leshope.
“The significant reduction in our net loss, improved performance against our predetermined objectives and continued clean audit outcome demonstrate the progress we are making in strengthening the organisation and positioning it for sustainable growth.”
“Sentech is a torch bearer of good governance within the portfolio,” adds Solly Malatsi, minister in the Department of Communications and Digital Technologies (DCDT), speaking at the Sentech annual general meeting, on 8 September.
For the full year ended 31 March, the company’s total revenue reached R1.63 billion, 1.4% above the FY2025 period.
In addition, net profit before tax loss was reduced to R141 million, from R165 million in the previous financial year.
Sentech is South Africa's state-owned provider of broadcasting signal distribution and communications infrastructure.
It reports to the DCDT and must ensure television and radio broadcasters can reach audiences across the country. Sentech has often been at odds with entities like public broadcaster, the SABC, over non-payment of services.
In addition to distributing terrestrial TV and radio signals, Sentech offers broadband, wireless and satellite connectivity services to government, enterprises and telecommunications operators.
It manages an extensive network of transmission sites nationwide and supports government initiatives aimed at expanding digital connectivity and communications services to rural and underserved communities, while pursuing commercial growth and financial sustainability.
According to the entity, during the financial year, it continued to proceed from being a traditional broadcast signal distribution business towards a diversified digital infrastructure and connectivity company.
As a result, it’s leveraging its national infrastructure footprint and capabilities to create new opportunities across connectivity, broadband, infrastructure and digital services.
“This transformation is underpinned by a focus on strengthening the core business, developing new revenue streams and identifying opportunities to unlock greater value from Sentech’s infrastructure and capabilities.”
Sentech also increased socio-economic transformation spend to R734 million, from R431 million in FY2025, representing an increase of R303 million.
The organisation also highlights support for small, medium and micro enterprises by reducing its average early payment period from 13 days to eight days.
Sentech indicates it plans to focus on converting its infrastructure base and capabilities into new growth opportunities, while strengthening financial sustainability and accelerating its digital transformation.
The organisation highlights that its priorities include diversifying revenue through innovative products, digital platforms and new markets, pursuing mergers and acquisitions to strengthen broadband and towers capabilities, supporting key shareholder initiatives, and embedding environmental, social and governance principles.
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