Secret behind Telkom comeback

Telkom says its data-led strategy has been key in the company’s turnaround and is helping drive its solid performance in mobile and fibre.

In the space of 12 months, South Africa’s oldest telecommunications company has seen its share price surge by 67%.

However, a longer-term analysis shows that share price gains since July 2024 are closer to 156%. Telkom shares traded at R23.61 at the end of July 2024, and today they are trading at R60.44.

Telkom has attributed the turnaround to the disciplined execution of its data-led strategy, coupled with the strength of the OneTelkom initiative.

“We have been seeing the strong growth of fibre and mobile data revenue for several reporting periods now, reaffirming the strength of this strategy,” Telkom told MyBroadband.

“Furthermore, the focus on operational initiatives across the Group, has resulted in our total costs being flat for year-to-date, for the nine-months ended 31 December 2025.”

Key contributors to Telkom’s recent success are the migration away from legacy voice and copper services toward high-growth platforms like mobile data and fibre.

“The consistent performance of our Mobile and Openserve businesses has provided a strong backbone for Telkom Group,” it said.

Looking ahead, Telkom will remain focused on disciplined execution of its strategy and is committed to delivering on its medium-term objectives.

“This includes continued investment in mobile and fibre networks, expanding coverage in underserved and under-indexed regions, and driving digital inclusion,” it said.

The network operator, founded in October 1991, was formed by splitting the Department of Posts and Telecommunications into the South African Post Office and Telkom.

The telecoms player remains majority state-owned. The South African government holds a 40.5% direct stake, while the state-run Public Investment Corporation holds 10.37%.

The Department of Communications and Digital Technologies serves as Telkom’s shareholder representative for the government.

When it launched, Telkom was primarily a fixed-line telephony provider to South African businesses and households. In the 90s, it was South Africa’s dominant telecommunications player.

It owned a 50% stake in Vodacom and benefited from a legislated monopoly over the country’s fixed-line market.

Telkom sold its stake in Vodacom in 2009, and its monopoly was ultimately ended, representing a significant blow to the company.

However, it continued to provide fixed-line products to millions of South African household and business customers.

Telkom’s product offerings were made possible through its extensive copper-based network. However, the rise of fibre-optic connectivity meant the company had to evolve to meet modern demands.

This was problematic at first as it struggled to adapt to the changing market. Furthermore, poor decisions by former chief executives and government interference cost Telkom billions.

As a result, many investors lost confidence in Telkom’s ability to deliver strong returns, and Telkom’s share price plummeted by 75% between June 2019 and June 2024.

In steps Serame Taukobong

Telkom’s current CEO, Serame Taukobong, took on the role in January 2022, and under his leadership, the network operator has observed a significant turnaround.

While it took a few years to show, Telkom managed to restore investors’ confidence, and its share price gains began to show in July 2024.

Moreover, the company has reported significantly improved financial results in recent years and resumed paying dividends after a nearly four-year absence. This is attractive for investors.

Telkom’s latest financial results, which were for the six months ended 30 September 2025, were positive, with its revenue increasing by 3.4% to R22.1 billion.

It attributed the strong growth to improved mobile data and fibre data revenue. Data revenue improved by 7.9% over the six months and accounted for nearly 60% of the Telkom Group’s total revenue.

“Double-digit growth in mobile and fibre-related data revenue underscored the success of the data-led strategy,” the company said.

“Mobile data revenue increased by 10.3%. Fibre-related data revenue grew by 12.3%.”

These improvements showcase the success of Telkom’s data-led strategy, and Taukobong said the results show that the company is well-positioned to deliver on its commitments.

“In the second half, revenue will remain a key area of focus across the Group, and we will continue with our sustainable cost-optimisation efforts,” the CEO said.

He added that Telkom will continue to leverage its extensive fibre footprint to drive further growth.

Given Telkom’s recent performance, MyBroadband calculated the return on a R1,000 investment in the company over a year between 21 January 2025 and 21 January 2026.

Without including dividend reinvestment, R1,000 in Telkom shares at the starting date would have secured roughly 30.14 shares. The value of these would have grown to around R1,850 a year later.

However, the return on investment is significantly higher when reinvesting dividend payouts. Telkom declared a dividend of R2.61 per share in its 2025 financial results.

It comprised an ordinary dividend of R1.63 and a special dividend of R0.98. This works out to a payout of around R78.66 on a R1,000 investment.

Reinvesting this into more Telkom shares would have resulted in a total return of R1,927.66, or roughly 98%, as of 21 January 2026.

The table below shows the return on a R1,000 investment in Telkom, made on 21 January 2025, with dividend reinvestment, by 21 January 2026.

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