{"id":629933,"date":"2026-02-23T11:59:13","date_gmt":"2026-02-23T09:59:13","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=629933"},"modified":"2026-02-23T12:01:45","modified_gmt":"2026-02-23T10:01:45","slug":"secret-behind-telkom-comeback","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/telecoms\/629933-secret-behind-telkom-comeback.html","title":{"rendered":"Secret behind Telkom comeback"},"content":{"rendered":"\n<p>Telkom says its data-led strategy has been key in the company&#8217;s turnaround and is helping drive its solid performance in mobile and fibre.<\/p>\n\n\n\n<p>In the space of 12 months, South Africa&#8217;s oldest telecommunications company has seen its share price surge by 67%.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>Telkom has attributed the turnaround to the disciplined execution of its data-led strategy, coupled with the strength of the OneTelkom initiative.<\/p>\n\n\n\n<p>&#8220;We have been seeing the strong growth of fibre and mobile data revenue for several reporting periods now, reaffirming the strength of this strategy,&#8221; Telkom told MyBroadband.<\/p>\n\n\n\n<p>&#8220;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.&#8221;<\/p>\n\n\n\n<p>Key contributors to Telkom&#8217;s recent success are the migration away from legacy voice and copper services toward high-growth platforms like mobile data and fibre.<\/p>\n\n\n\n<p>&#8220;The consistent performance of our Mobile and Openserve businesses has provided a strong backbone for Telkom Group,&#8221; it said.<\/p>\n\n\n\n<p>Looking ahead, Telkom will remain focused on disciplined execution of its strategy and is committed to delivering on its medium-term objectives.<\/p>\n\n\n\n<p>&#8220;This includes continued investment in mobile and fibre networks, expanding coverage in underserved and under-indexed regions, and driving digital inclusion,&#8221; it said.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>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%.<\/p>\n\n\n\n<p>The Department of Communications and Digital Technologies serves as Telkom&#8217;s shareholder representative for the government.<\/p>\n\n\n\n<p>When it launched, Telkom was primarily a fixed-line telephony provider to South African businesses and households. In the 90s, it was South Africa&#8217;s dominant telecommunications player.<\/p>\n\n\n\n<p>It owned a 50% stake in Vodacom and benefited from a legislated monopoly over the country&#8217;s fixed-line market.<\/p>\n\n\n\n<p>Telkom sold its stake in Vodacom in 2009, and its monopoly was ultimately ended, representing a significant blow to the company.<\/p>\n\n\n\n<p>However, it continued to provide fixed-line products to millions of South African household and business customers.<\/p>\n\n\n\n<p>Telkom&#8217;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.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>As a result, many investors lost confidence in Telkom&#8217;s ability to deliver strong returns, and Telkom&#8217;s share price plummeted by 75% between June 2019 and June 2024.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">In steps Serame Taukobong<\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"675\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2025\/11\/Serame-Taukobong.jpg\" alt=\"\" class=\"wp-image-618823\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2025\/11\/Serame-Taukobong.jpg 1200w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2025\/11\/Serame-Taukobong-600x338.jpg 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2025\/11\/Serame-Taukobong-768x432.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption class=\"wp-element-caption\">Telkom CEO Serame Taukobong<\/figcaption><\/figure>\n\n\n\n<p>Telkom&#8217;s current CEO, Serame Taukobong, took on the role in January 2022, and under his leadership, the network operator has observed a significant turnaround.<\/p>\n\n\n\n<p>While it took a few years to show, Telkom managed to restore investors&#8217; confidence, and its share price gains began to show in July 2024.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>Telkom&#8217;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.<\/p>\n\n\n\n<p>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&#8217;s total revenue.<\/p>\n\n\n\n<p>&#8220;Double-digit growth in mobile and fibre-related data revenue underscored the success of the data-led strategy,&#8221; the company said.<\/p>\n\n\n\n<p>&#8220;Mobile data revenue increased by 10.3%. Fibre-related data revenue grew by 12.3%.&#8221;<\/p>\n\n\n\n<p>These improvements showcase the success of Telkom&#8217;s data-led strategy, and Taukobong said the results show that the company is well-positioned to deliver on its commitments.<\/p>\n\n\n\n<p>&#8220;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,&#8221; the CEO said.<\/p>\n\n\n\n<p>He added that Telkom will continue to leverage its extensive fibre footprint to drive further growth.<\/p>\n\n\n\n<p>Given Telkom&#8217;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.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><div class=\"table-responsive\"><table class=\"table\" class=\"has-fixed-layout\"><thead><tr><th colspan=\"2\">Telkom investment value change between January 2025 and January 2026<\/th><\/tr><\/thead><tbody><tr><td>Share price at close of JSE trading on 21 January 2025<\/td><td class=\"has-text-align-center\" data-align=\"center\">R33.17<\/td><\/tr><tr><td><strong>Share price at close of JSE trading on 21 January 2026<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>R61.34<\/strong><\/td><\/tr><tr><td>Change in share price only<\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">+84.9%<\/mark><\/strong><\/td><\/tr><tr><td>Total dividend on 14 July 2025<\/td><td class=\"has-text-align-center\" data-align=\"center\">R2.61<\/td><\/tr><tr><td><strong>Total value of a share plus dividend payout<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>R63.95<\/strong><\/td><\/tr><tr><td>Total change if dividend payout pocketed<\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">+92.8%<\/mark><\/strong><\/td><\/tr><tr><td>Revised dividend value if reinvested on payout date<\/td><td class=\"has-text-align-center\" data-align=\"center\">R3.16<\/td><\/tr><tr><td><strong>Total value of shares with reinvested dividends<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>R64.50<\/strong><\/td><\/tr><tr><td>Total change if dividend payout pocketed<\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">+94.44%<\/mark><\/strong><\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Telkom explains how it transitioned from a struggling, copper-focused provider to a lean, data-led firm.<\/p>\n","protected":false},"author":341076,"featured_media":561485,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[1355,109,103115,62278],"class_list":["post-629933","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-telecoms","tag-serame-taukobong","tag-telkom","tag-telkom-dividend","tag-telkom-share-price"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/629933"}],"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\/341076"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=629933"}],"version-history":[{"count":6,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/629933\/revisions"}],"predecessor-version":[{"id":630337,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/629933\/revisions\/630337"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/561485"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=629933"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=629933"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=629933"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}