Telkom Posts Solid First Quarter as Data Strategy Drives Growth and Profitability
The company reported a 1.1% year-on-year increase in group revenue, reaching R10.8 billion, while group EBITDA rose by 6.5% to R2.8 billion
Telkom SA SOC Limited has released its trading update for the first quarter of 2025/26, showing a steady start supported by continued growth in data revenue and disciplined cost management. The company reported a 1.1% year-on-year increase in group revenue, reaching R10.8 billion, while group EBITDA rose by 6.5% to R2.8 billion. The EBITDA margin improved to 25.9%, reflecting operational efficiencies and reduced structural costs across the business.
The core of Telkom’s growth story remains its data-led strategy. Group data revenue increased by 7.1% to R6.36 billion, now accounting for nearly 60% of total revenue. Telkom Consumer saw its mobile service revenue rise by 7.8%, with mobile data subscribers growing by 27.5% to 17.2 million. Data traffic also increased by 15.9%, driven by strong uptake in prepaid offerings, particularly in under-serviced regions where the company continues to expand its footprint.
Openserve, Telkom’s wholesale and infrastructure arm, delivered a solid performance with fibre data revenue climbing 11.3%. The business unit passed more than 1.4 million homes and connected over 723,000, achieving a connectivity rate of 51.1%—the highest in the market. The continued investment in last-mile connectivity, combined with network simplification and energy transformation initiatives, positioned Openserve for sustainable top-line growth.
Despite these gains, the enterprise-focused BCX division reported an 8.3% decline in revenue, reflecting a deliberate shift away from hardware and legacy services toward higher-margin IT and fibre-led offerings. While this transition weighed on overall results, BCX’s fibre-related data revenue grew by 6.8%, and gains were recorded in areas such as cybersecurity, municipal solutions, and IoT. The company expects these areas to drive a faster turnaround in future quarters.
Group CEO Serame Taukobong expressed confidence in the direction of the business, highlighting the strength of the data strategy and its alignment with medium-term targets. He noted that Telkom remains focused on improving customer experience, expanding network coverage, and delivering affordable, high-value digital services.
“Our data-led strategy continues to be the competitive advantage enabling us to sustain our momentum into FY2026 and the increased contribution by mobile data and fibre-based services to total revenue is consistent with the assumptions supporting our medium-term objectives.”
– Serame Taukobong, Group CEO, Telkom
Telkom also strengthened its financial position by settling R4.75 billion in interest-bearing debt using proceeds from the sale of Swiftnet, with R500 million of those proceeds returned to shareholders through a special dividend. The remainder has been retained to support future growth.
Looking ahead, Telkom intends to maintain momentum by deepening its presence in regional markets, accelerating fibre adoption, and optimising its product catalogue. The company remains confident that it is on track to meet its medium-term guidance for sustained growth and improved profitability.
