{"id":603373,"date":"2025-07-21T12:22:14","date_gmt":"2025-07-21T10:22:14","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=603373"},"modified":"2025-07-21T12:25:05","modified_gmt":"2025-07-21T10:25:05","slug":"telkom-unveils-new-logo","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/trending\/603373-telkom-unveils-new-logo.html","title":{"rendered":"Telkom unveils new logo"},"content":{"rendered":"\n

Telkom has launched a new logo and visual identity for the company, which it says represents a deeper cultural and strategic shift that redefines how it shows up for its people, its customers, and South Africa at large.<\/p>\n\n\n\n

The company has also changed its tagline from \u201cTomorrow starts today\u201d to \u201cPossible begins here\u201d.<\/p>\n\n\n\n

The company last rebranded in 2014, when it retired its iconic dialpad logo in favour of a more modern and minimalist design.<\/p>\n\n\n\n

Around the same time, Telkom changed its 8ta mobile network brand to Telkom Mobile. However, soon thereafter its mobile services would be incorporated under the parent brand.<\/p>\n\n\n\n

Telkom\u2019s rebranding comes just less than a year after Cell C refreshed its brand<\/a>. MTN rebranded<\/a> at the start of 2022.<\/p>\n\n\n\n

Sanlam Investments portfolio manager Roy Mutooni recently said Telkom has found its stride<\/a> and is expected to report high free cash flow generation in the short to medium term.<\/p>\n\n\n\n

Mutooni explained that they took a sceptical approach following Telkom\u2019s recent annual financial results announcement and still came away convinced that the company\u2019s rebound was sustainable.<\/p>\n\n\n\n

\u201cTheir ability to generate free cash flow was significantly greater than anybody on the market had seen before,\u201d Mutooni told BusinessDay TV<\/a>. <\/p>\n\n\n\n

Telkom\u2019s free cash flow increased 555.2% to R2.8 billion, and adjusted headline earnings per share were up 102.4% to 583.2 cents.<\/p>\n\n\n\n

Group revenue increased 3.3% to R43.9 billion, and earnings before interest, taxes, depreciation, and amortisation (EBITDA) were up 25.1% to R11.8 billion.<\/p>\n\n\n\n

\u201cWe really quizzed management about how sustainable this is, and I came out feeling relatively confident that you should continue to see free cash flow generation in the short-to-medium term somewhere in the region of R3 billion per year.\u201d<\/p>\n\n\n\n

Mutooni said they previously expected Telkom to generate about R1 billion to R1.5 billion in free cash flow per year.<\/p>\n\n\n\n

Telkom turnaround for real<\/h2>\n\n\n\n
\"\"
Telkom has unveiled a new logo<\/figcaption><\/figure>\n\n\n\n
\"\"
Telkom’s new brand identity includes a new icon<\/figcaption><\/figure>\n\n\n\n

\u201cThis is a business that\u2019s hit its stride really well and will continue to generate cash, so this turnaround is for real,\u201d he said.<\/p>\n\n\n\n

\u201cThe big thing is that they got rid of Swiftnet, which allowed them to pay down a lot of their historical debts. So they\u2019ve got a clean balance sheet and strong cash generation.\u201d<\/p>\n\n\n\n

Mutooni said Telkom management was demonstrating this by resuming dividends and paying a special dividend to shareholders.<\/p>\n\n\n\n

Telkom will return a total dividend of 261 cents per share, including an ordinary cash dividend of 163 cents per share and a special dividend of 98 cents per share from the Swiftnet sale.<\/p>\n\n\n\n

Telkom CEO Serame Taukobong said the company has modernised its technology infrastructure and executed on a detailed strategy across its operations.<\/p>\n\n\n\n

\u201cThe financial results for the 2025 financial year confirm that the business has stabilised and has built a platform for accelerated growth,\u201d he said.<\/p>\n\n\n\n

Telkom is heavily focused on its mobile and data products, which have both shown a strong performance over the last year.<\/p>\n\n\n\n

Mobile subscribers grew by 13.4% to 23.2 million, and fibre data revenue surged by 15.5%, driven by a 3.4% increase in subscribers and a 12.4% uplift in average revenue per user (ARPU).<\/p>\n\n\n\n

Taukobong said Telkom established a solid foundation from which to grow, leveraging its mobile and fixed networks, as well as its ICT capabilities.<\/p>\n\n\n\n

The strategic medium-term objectives include an EBITDA margin of between 25% and 27%, supported by mid-single-digit top-line revenue growth.<\/p>\n\n\n\n

Telkom expects to contain capital expenditure to 12% and 15% of revenue and ensure a strong balance sheet with a net debt to EBITDA ratio of 0.5x to 1.5x.<\/p>\n\n\n\n

Telkom undervalued<\/h2>\n\n\n\n
\"\"
Roy Mutooni, Sanlam Investments portfolio manager<\/figcaption><\/figure>\n\n\n\n

Mutooni believes Telkom\u2019s share is undervalued compared to the free cash flow yield.<\/p>\n\n\n\n

\u201cIf you look at it from a free cash flow basis, which is how I think these capital-intensive businesses need to be looked at, it\u2019s probably trading at about a 12% maybe a 13% free cash flow yield,\u201d he explained.<\/p>\n\n\n\n

Free cash flow yield is the ratio of the free cash flow divided by the share price. Therefore, free cash flow yield decreases as the share price increases.<\/p>\n\n\n\n

\u201cFor a business such as this, it probably should trade closer to an 8%, 9%, or 10%, which means there\u2019s upside,\u201d Mutooni said.<\/p>\n\n\n\n

At the time of the interview, Telkom\u2019s share price was around R47. By publication, it was trading at around R52, meaning the free cash flow yield had decreased to 10.5%.<\/p>\n\n\n\n

Mutooni predicted at the time that the stock would not see dramatic moves. However, Telkom\u2019s share price has already increased by over 10%.<\/p>\n\n\n\n

\u201cThe market wants to see sustained execution from management, so you\u2019re going to see moves around results announcements,\u201d he said.<\/p>\n\n\n\n

\u201cBut the momentum is definitely there, and management understands the pressure that is on them now.\u201d<\/p>\n\n\n\n

Merchant West Investments director and fund manager, Piet Viljoen, said Telkom is the kind of stock value investors dream about.<\/p>\n\n\n\n

It is unpopular, under-owned, asset-rich, cash generative, and has highly valued comparable assets, owned by credible players.<\/p>\n\n\n\n

However, despite the positivity around Telkom, Zwelakhe Mnguni from Benguela Global Fund Managers said he would wait for a pull-back before buying the stock as it had increased significantly in the past year.<\/p>\n\n\n\n

Ricus Reeders from PSG Hole in One Ruimsig concurred, saying a retreat from the current levels would provide investors with a buying opportunity.<\/p>\n","protected":false},"excerpt":{"rendered":"

Telkom has launched a new logo and visual identity for the company, eleven years after its last rebranding.<\/p>\n","protected":false},"author":15,"featured_media":524722,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[41906,40380],"tags":[109],"class_list":["post-603373","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-telecoms","category-trending","tag-telkom"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/603373"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=603373"}],"version-history":[{"count":2,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/603373\/revisions"}],"predecessor-version":[{"id":603380,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/603373\/revisions\/603380"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/524722"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=603373"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=603373"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=603373"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}