Telkom SA Posts 3.3% Increase in Group revenue, Declares First Dividend in 4 Years

Telkom SA has delivered a strong set of results for the financial year ended 31 March 2025, marking a significant turning point in the company’s transformation journey. The telecoms group, now firmly positioned as South Africa’s digital backbone, is reaping the rewards of its data-led strategy, disciplined cost management, and focused infrastructure investments. 

In a bold display of operational discipline and strategic clarity, Telkom is emerging from a complex transition period with renewed confidence and clear ambitions to deepen its role in Africa’s digital future.  

“Telkom’s strategic vision is translating into exceptional results, demonstrating our unwavering commitment to strengthening our position as the digital backbone of South Africa. Our data-centric strategy continues to be the key driver, enabling us to deliver sustained, impressive performance.”  

– Serame Taukobong, Group CEO, Telkom Group  

Africa-First Strategy: Laying the Foundation 

Telkom reported a 3.3% increase in Group revenue to R43.88 billion, underpinned by double-digit growth in mobile service revenue (+10.2%) and fibre-related data revenue (+10.0%). The Group’s adjusted EBITDA surged 25.1% to R11.79 billion, with margins expanding to 26.9%, reflecting substantial improvements in operational efficiency.

A standout was the Group’s free cash flow, which soared 555% to R2.78 billion, enabling the reinstatement of a dividend for the first time in four years. Shareholders will receive a total payout of 261 cents per share, comprising an ordinary dividend (163 cps) and a special dividend (98 cps) following the successful disposal of Telkom’s mast and towers business, Swiftnet.

One of the most telling signs is BCX’s growing strategic role. With a renewed focus on higher-margin IT services, BCX is actively shifting from hardware-heavy operations to cloud, IoT, and AI-powered platforms—solutions that are increasingly in demand across African governments and businesses seeking digital transformation. While its international revenue dipped slightly by 4.7% (largely due to macroeconomic volatility in some African markets), BCX continues to view cross-border services as a core growth area, particularly for e-government, cybersecurity, and AI-led analytics.  

Also, Telkom Consumer, now South Africa’s fastest-growing broadband provider, saw mobile subscribers grow 13.4% to 23.2 million. Prepaid users jumped 15.4%, and mobile data revenue rose 12.3% to R16.07 billion. Consumer EBITDA increased 36% to R5.57 billion.

Telkom’s property division, Gyro, generated R730 million in proceeds from asset sales, with R280 million still in the conveyancing process. The Group achieved significant sustainability milestones, including a 78% reduction in diesel use and a 5.5% drop in carbon emissions.

Connectivity at the Core of Regional Integration 

Openserve, Telkom’s wholesale arm, is playing a pivotal role in cross-border infrastructure integration. Through partnerships with global players like Google, Openserve is expanding terrestrial and undersea cable routes that reach deeper into Southern Africa. A new international point of presence linking South Africa to Angola and Brazil is underway, part of a larger effort to diversify and secure African connectivity pathways against disruptions.

With fibre-based services now constituting 82% of Openserve’s total revenue, the unit is clearly positioned as a key enabler of Africa’s data economy. Its fibre connectivity footprint grew by 13.3%, passing nearly 1.4 million homes—a model that could be replicated in emerging urban centres across the continent through strategic partnerships.

Digital Inclusion and Enterprise Enablement 

Telkom’s social impact investments further reinforce its continental relevance. In FY2025, the Telkom Foundation invested R68 million in digital literacy initiatives, directly impacting over 58,000 individuals, many from underserved communities. The FutureMakers programme, now in its 10th year, supported 459 SMMEs and helped create or sustain nearly 74,000 jobs. These efforts are particularly notable as African economies look to ICT-enabled entrepreneurship as a lever for youth employment and economic diversification.

Strategic Capital Allocation with Continental Implications 

The R6.6 billion disposal of Swiftnet, Telkom’s masts and towers business, has not only cleaned up the balance sheet—bringing net debt down by 55.8%—but also unlocked funds for shareholder returns, tech innovation, and cross-border expansion. A special dividend of 98 cents per share has been declared, and R4.75 billion from the sale is being reinvested into the business. 

This kind of capital mobility positions Telkom to seize M&A and infrastructure partnership opportunities across Africa. As spectrum allocation and telecom liberalisation gain pace in countries like Nigeria, Kenya, Ghana, and Zambia, Telkom’s leaner, tech-centric profile may give it the flexibility to co-invest or co-develop in these markets. 

Outlook: Building Africa’s Digital Backbone 

Looking ahead, Telkom’s medium-term roadmap calls for sustainable, mid-single-digit revenue growth, with capital intensity maintained at 12–15% of revenue. The company is especially bullish about leveraging its 4G/5G infrastructure and edge data capabilities to power “Everything-as-a-Service” (XaaS) models—customizable digital platforms that can meet the varied needs of African enterprises and governments.

Moreover, with the rapid adoption of AI and cybersecurity platforms across Africa, Telkom’s intention to become a regional leader in these fields is becoming increasingly plausible. The emphasis on ethical AI deployment and end-to-end cybersecurity positions Telkom as a partner of choice for African countries seeking sovereign digital capabilities. 

FY2025 is more than a strong financial year for Telkom SA—it represents a strategic inflection point. The company has emerged leaner, more focused, and more aligned to the needs of a connected, data-driven African future. With infrastructure scale, proven innovation capacity, and a socially rooted mission, Telkom is not just transforming South Africa’s digital landscape—it’s laying the groundwork to become a continental force in Africa’s digital rise.