JSE-listed telecommunications firm Telkom has posted strong full-year results, bolstered by significant growth in its mobile business, as well as gains from the Swiftnet disposal.
The company today published its annual financial results and ordinary and special dividend declaration for the year ended 31 March (FY2025).
Telkom delivered a strong set of results for its continuing operations, marked by robust growth across key financial metrics.
Group earnings before interest, taxes, depreciation and amortisation (EBITDA) surged by 25.1% to R11.8 billion, while group revenue rose by 3.3% to R43.9 billion.
Free cash flow saw an increase of 555.2%, reaching R2.8 billion, underpinned by improved earnings and cash management.
According to Telkom, adjusted headline earnings per share more than doubled, climbing 102.4% to 583.2c, with adjusted basic earnings per share up 128.9% to 681.7c.
The group’s mobile subscriber base expanded by 13.4% to 23.2 million, further strengthening its market position.
Telkom declared a dividend of 261c per share. Additionally, it notes, the successful conclusion of the Swiftnet disposal generated proceeds of R6.6 billion, enhancing the group’s financial flexibility.
OneTelkom approach pays off
In a statement, the firm says the results reflect sustainable momentum in the group’s underlying operational performance as it sets ambitious, yet achievable, objectives for the next three years, underpinned by the OneTelkom approach.
It notes that double-digit growth in mobile and fixed data traffic underscored the strength of Telkom’s core offerings and drove sharp increases in operating margins.
According to the company, cost optimisation remains a key focus, and it helped achieve a 25.1% growth in adjusted EBITDA to R11.8 billion, exceeding guidance.
The group reinstated its dividend, signalling a renewed focus on delivering value to shareholders. It will return a total dividend of R1.3 billion, which includes an ordinary cash dividend of R833 million (163c per share) and a special dividend of R500 million (98c per share) from the completed disposal of the Swiftnet masts and towers business, resulting in 261c per share being returned to Telkom shareholders.
“The company has largely modernised its technology infrastructure and executed on a robust, detailed strategy across its operations. The financial results for FY2025 confirm that the business has not only stabilised but has built a platform for accelerated growth,” says Serame Taukobong, Telkom group CEO.
Openserve saw fibre data revenue increasing by 5.9%, driven by a 13.3% increase in homes passed to 1.38 million and a 50.4% connectivity rate, the highest in the market, says Telkom. Openserve’s EBITDA grew by 1.8% to R4 billion.
Telkom states that Openserve is one of South Africa’s leading wholesale infrastructure connectivity providers and the country’s largest open-access network. It points out that network simplification and energy transformation reduced operating costs, and ongoing investment in the fibre network delivered capital intensity of 20.5%.
Telkom Consumer increased operating revenue by 5.6% to R27.8 billion, driven by advanced data analytics, optimisation of the product portfolio and expansion of distribution channels, the company adds.
External revenue from the mobile business reached R24.4 billion, an 8.3% increase, driven by 10.2% growth in mobile service revenue to R21 billion. Fibre-related data revenue surged by 15.5%, driven by a 3.4% increase in subscribers and a 12.4% uplift in average revenue per user.
Persistent BCX woes
BCX saw revenue decline by 4.4% to R12.3 billion, in its ongoing strategic transition towards higher-margin services, the group reveals.
It notes that BCX generated adjusted EBITDA of R1.4 billion before restructuring costs of R157 million, improving by 6.3% compared to FY2024. Performance accelerated in the second half as the 9% EBITDA margin rose to 13.2%, reflecting early gains from the cost transformation programme.
Gyro, which manages the group’s property portfolio for core operational purposes, generated R730 million from the sale of 57 non-core properties. An additional 30 properties in the conveyancing process are expected to yield R280 million, says Telkom, adding that the proceeds will support liquidity and strategic reinvestment.
Taukobong says the group has built a good base from which to grow as a focused InfraCo, using its mobile and fixed networks and ICT capabilities.
He explains that the strategic medium-term objectives include an EBITDA margin of between 25% and 27%, top line revenue growth of mid-single digit, continued strategic capital expenditure of 12%–15% of revenue, and preserving a robust balance sheet with a net debt to EBITDA ratio of 0.5x–1.5x.
“In 2023, Telkom embarked on a strategy to pursue our vision of serving as the backbone of South Africa’s digital future,” says Taukobong.
“Since then, as OneTelkom we have focused relentlessly on delivering hard results through this clarity of purpose. We reshaped our business to make the most of our strengths, we refocused our leadership and management structure to deliver on our commitments to our shareholders, and we set clear goals and key performance indicators for the group and its operating divisions.
“Today, our 2025 full-year results demonstrate that the competent execution of our data-led strategy is meeting and, in some cases, exceeding expectations,” he concludes.
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