Telkom is the official sponsor of the South African Olympic and Paralympics teams heading to Rio de Janeiro in Brazil later this year.
The operator did not disclose the value of the deal, but says it is a "multimillion-rand sponsorship", which will help the South African Sports Confederation and Olympic Committee (SASCOC) to expand Team SA and include more qualifying athletes.
The deal includes R4 million from the telco for the medal incentive pot, to be shared between the Olympic and Paralympic athletes and coaches who win medals.
Telkom has a history of supporting the Olympics, having sponsored teams attending the Athens Olympics in 2004 and the Beijing games in 2008. It also sponsored athletes for the London Paralympics in 2012.
However, the multimillion-rand deal comes at a time when Telkom is due to report an earnings slump after it had to pay R2.2 billion in staff cut packages over the last 12 months. Telkom expects its full year headline earnings per share for the year ended 31 March to drop by 40% to 50% year-on-year.
The results, which will be released on 6 June, will be impacted by payments to approximately 4 200 employees who accepted voluntary severance and voluntary early retirement packages during the financial year.
"Telkom is honoured to be able to partner with our national Olympics team as they test themselves in the world's most demanding sporting competition. Their dedication to the Olympic motto of faster, higher, stronger, resonates with all of us as we strive to always be better than we were," according to Sipho Maseko, Telkom group CEO.
"On the eve of our departure to the Rio Olympics, SASCOC could not have asked for better news. With this sponsorship, Telkom has shown confidence in Team SA," says SASCOC president Gideon Sam.
Sam says SASCOC plans to take up to 230 athletes and officials to Rio, and sending the team "requires such positive support of brands like Telkom".
"The Olympics is the biggest sporting event of our time. With the backing of one of SA's largest corporates to smooth their journey, I have no doubt our team will do us proud. We are doing this for the future of our young people," said sports minister Fikile Mbalula at the announcement event.
Telecommunications and postal services minister Siyabonga Cwele was also at the event and said Telkom's sponsorship will enable more elite athletes to achieve their Olympic dreams "and in the process, inspire the next generation".
The 2016 Summer Olympic Games will take place from 5 to 21 August in Rio de Janeiro and the 2016 Paralympic Games are scheduled for 7 to 18 September.
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