Data-Led Strategy and Streamlined Operations Anchor Telkom’s FY2025 Performance
According to the company’s latest integrated report, group revenue from continuing operations rose by 3.3 percent to R43.9 billion, driven primarily by the performance of its mobile and fibre segments.
Telkom has reported a solid set of results for the fiscal year ending 31 March 2025, underpinned by a sharpened focus on data services, disciplined cost management, and the execution of key strategic priorities. The South African digital infrastructure and technology services provider closed the year with meaningful gains in profitability, cash flow, and operational efficiency, despite only modest revenue growth.
According to the company’s latest integrated report, group revenue from continuing operations rose by 3.3 percent to R43.9 billion, driven primarily by the performance of its mobile and fibre segments. Mobile service revenue increased by 10.2 percent to R21.0 billion, while total data revenue—comprising mobile and fibre—grew by 9.5 percent to R24.7 billion. This growth reflects Telkom’s deliberate move away from legacy voice services and toward digital platforms better aligned with evolving customer behaviour.
The company’s strategic reorganisation and cost optimisation efforts had a pronounced effect on profitability. Group adjusted EBITDA rose by 25.1 percent to R11.8 billion, lifting the EBITDA margin by 4.7 percentage points to 26.9 percent. The gains were attributed to structural savings achieved through network simplification at Openserve, operational restructuring at BCX, and roaming cost efficiencies.
Cash flow performance strengthened significantly. Free cash flow rose more than sixfold to R2.8 billion, up from R424 million in the previous year. The improvement was bolstered by stronger underlying operations and the disposal of non-core assets, including the sale of Swiftnet. As a result, Telkom ended the year with a markedly improved balance sheet. Net debt declined by 55.8 percent, while the net debt to EBITDA ratio improved to 0.6x from 1.8x in FY2023.
Across its business units, Telkom reported varied contributions. Telkom Consumer recorded a 5.6 percent rise in revenue to R27.8 billion, supported by sustained demand for mobile data services. The mobile subscriber base grew by 13.4 percent to 23.2 million, with mobile data users increasing by 19.5 percent to 15.2 million. EBITDA in the mobile segment rose by 30.3 percent to R6.6 billion, reflecting gains from network investments and a focus on digital delivery.
Openserve expanded its fibre footprint during the year, with the number of homes passed rising by 13.3 percent to over 1.37 million and homes connected increasing by 17.6 percent to 694,630. The business achieved a 50.4 percent connectivity rate and grew its fibre data portfolio by 5.9 percent. EBITDA rose modestly by 1.8 percent to R4.0 billion, as the division pursued operational streamlining and energy efficiency improvements.
At BCX, the enterprise ICT subsidiary, momentum improved in the second half of the year. Its IT Services portfolio expanded by 2.6 percent, reflecting steady demand for cloud and Internet of Things (IoT) solutions. BCX deployed over 95,000 IoT devices—surpassing internal targets—and progressed with realigning its operating model to enhance profitability and capital efficiency.
Meanwhile, the Group’s property management arm, Gyro, generated R730 million in cash through the sale of 57 non-core sites. This initiative contributed to cost containment and improved liquidity.
Although treated as a discontinued operation following its disposal, Swiftnet delivered a notable performance during the ten months to January 2025, reporting an 11.7 percent increase in revenue to R1.2 billion and a 12.0 percent rise in EBITDA to R912 million. The sale of Telkom’s full equity interest in Swiftnet to a consortium led by Actis LLP and Royal Bafokeng Holdings marked a key milestone in the Group’s Value Unlock Strategy.
In parallel with its financial achievements, Telkom reaffirmed its commitment to sustainability and inclusive leadership. The proportion of women in leadership roles rose to 35.5 percent, up from a baseline of 32 percent in FY2022. The company also recorded a 32 percent reduction in Scope 1 and 2 carbon emissions compared to FY2022, with its net zero targets formally approved by the Science Based Targets initiative (SBTi). It is working toward carbon neutrality by 2035 and net zero emissions by 2040.
Innovation continued to underpin Telkom’s long-term transformation. The Group invested R46 million in research and development during the year, including the deployment of artificial intelligence platforms such as “Bafo,” designed to improve contact centre operations, and “Voice of the Customer,” a feedback engine to enhance customer insight. These initiatives are part of a broader push to digitise internal systems and improve the customer experience through self-service and automation.
Looking ahead, Telkom expects to sustain its growth momentum by deepening investments in mobile and fibre infrastructure, optimising its product offerings, and refining its customer engagement. The Group also plans to review its PIVOT Strategy in the 2026 financial year to determine its continued relevance in light of Telkom’s evolving priorities. With a leaner balance sheet, a clear strategic focus, and positive momentum across key areas, Telkom enters the new fiscal year with a strengthened position in South Africa’s digital landscape.
