{"id":651346,"date":"2026-06-02T08:50:46","date_gmt":"2026-06-02T06:50:46","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=651346"},"modified":"2026-06-02T08:53:18","modified_gmt":"2026-06-02T06:53:18","slug":"telkom-profit-increases-27-5","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/business-telecoms\/651346-telkom-profit-increases-27-5.html","title":{"rendered":"Telkom profit increases 27.5%"},"content":{"rendered":"\n

Telkom posted excellent financial performance in the year ending 31 March 2026, driven by strong growth in data revenue in its mobile and residential fibre Internet businesses.<\/p>\n\n\n\n

The company released its annual results on Tuesday, 2 June 2026, revealing that profit increased 27.5% from R2.783 billion to R3.55 billion.<\/p>\n\n\n\n

Excluding the impacts of its settlement of the Telkom Retirement Fund (TRF) and restructuring costs with a related tax impact, profit in the previous financial year would have been R3.35 billion.<\/p>\n\n\n\n

Even if these one-off costs had not been incurred, Telkom’s profit in 2025\/26 would have been 5.9% higher than in 2024\/25.<\/p>\n\n\n\n

Telkom group revenue increased by 1.4% to R44.48 billion. The growth came from its consumer and Openserve businesses, but was knocked by revenue decline at enterprise connectivity provider BCX.<\/p>\n\n\n\n

The group’s overall costs declined 1.1%, which Telkom attributed to continued cost and cash management discipline. <\/p>\n\n\n\n

Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased 13.3% to R12.48 billion, or 5.8% when adjusted for the aforementioned losses in the previous financial year. <\/p>\n\n\n\n

That resulted in the EBITDA margin expanding to 28.1%. In addition, Telkom’s cost-to-income ratio improved from 75.1% to 73%, and its net debt-to-EBITDA ratio decreased from 0.6x to 0.5x.<\/p>\n\n\n\n

Furthermore, free cash flow increased by 10.4% to R3.07 billion, reflecting disciplined cash generation management.<\/p>\n\n\n\n

Telkom Group CEO Serame Taukobong said the results validated Telkom’s strategy for transformation and positioning the company for consistent quality earnings that allow for enhanced shareholder returns.<\/p>\n\n\n\n

“As a result, we have increased our dividend payout ratio to a range of 40% to 60%, with the Board declaring an ordinary dividend at 45% of free cash flow,” Taukobong said.<\/p>\n\n\n\n

Telkom’s board declared an ordinary cash dividend of 270 cents per share, up 65.7% from the previous year’s 163 cents. <\/p>\n\n\n\n

It was also 3.5% higher than the total dividend which included a special dividend for the once-off gain from its disposal of Swiftnet in the previous financial year.<\/p>\n\n\n\n

Consumer mobile and fibre businesses soar <\/h2>\n\n\n\n
\"\"<\/figure>\n\n\n\n

Telkom’s group data revenue increase was a major growth driver. It climbed 7.6% to R26.60 billion, increasing its contribution to total revenue from 56.4% in the 2024\/25 to 59.8% in 2025\/26.<\/p>\n\n\n\n

Telkom’s mobile data revenue grew by 10.5%, supported by a 31.1% increase in mobile data subscribers to nearly 20 million users. <\/p>\n\n\n\n

The division’s overall subscriber base surpassed 25 million customers, sustaining market-leading service revenue growth for the 14th consecutive quarter.<\/p>\n\n\n\n

Overall, mobile service revenue increased by 6.8%, showing significantly more growth than at competitors. The mobile EBITDA margin also expanded to 29%<\/p>\n\n\n\n

Telkom’s fibre-related data revenue increased by 6.3%, driven primarily by an increase of 8.2% at Openserve, which also recorded an overall revenue increase of 2.3%.<\/p>\n\n\n\n

BCX’s total revenue declined by 7.6% to R11.41 billion, driven by a struggling converged communications business. Its annuity-based revenue remained stable. <\/p>\n\n\n\n

BCX’s IT business revenue was R6.72 billion, cybersecurity revenue increased by 21.1%, and IT hardware and software revenue grew 5.6%.<\/p>\n\n\n\n

Looking forward, Taukobong said that Telkom’s data-led strategy remained its key growth driver, building on the establishment of its OneTelkom approach that positions the company as a digital backbone. <\/p>\n\n\n\n

“We are now focused on the next phase of value creation,” he said. “This will be achieved through further increasing efficiencies and improving growth across the board.”<\/p>\n\n\n\n

“Capex intensity will remain within the 12%\u201315% range, primarily funding Mobile and fibre to support revenue growth, while cost efficiencies protect margins.”<\/p>\n\n\n\n

Taukobong said the combined effect will be geared towards free cash flow generation and a prudent leverage position.<\/p>\n\n\n\n

The table below provides a summary of Telkom’s financial results in its 2024\/25 and 2025\/26 financial years.<\/p>\n\n\n\n

<\/th>2025<\/th>2026<\/th><\/th><\/tr><\/thead>
Revenue<\/td>R43.880 billion<\/td>R44.477 billion<\/td>+1.4%<\/strong><\/mark><\/td><\/tr>
EBITDA<\/td>R11.014 billion<\/td>R12.480 billion<\/td>+13.3%<\/mark><\/strong><\/td><\/tr>
Adjusted EBITDA*<\/td>R11.792 billion<\/td>R12.480 billion<\/td>+5.8%<\/mark><\/strong><\/td><\/tr>
Profit for the year<\/td>R2.783 billion <\/td>R3.548 billion<\/td>+27.5% <\/mark><\/strong><\/td><\/tr>
Adjusted profit for the year*<\/td>R3.351 billion<\/td>R3.548 billion<\/td>+5.9% <\/mark><\/strong><\/td><\/tr>
Dividend <\/td>261 cents
(including special dividend)<\/td>		270 cents<\/td>+3.5%<\/mark><\/strong><\/td><\/tr>
Basic earnings per share<\/td>1,528 cents<\/td>719.5 cents<\/td>-52.9%<\/mark><\/strong><\/td><\/tr>
Attributable to continuing business<\/td>566 cents<\/td>719.5 cents<\/td>+27.1%<\/mark><\/strong><\/td><\/tr>
Attributable to discontinued business<\/td>962 cents<\/td>\u2014<\/td>-100%<\/mark><\/strong><\/td><\/tr>
Headline earnings per share<\/td>566 cents<\/td>708.5 cents<\/td>+30.1%<\/strong><\/mark><\/td><\/tr>
*Adjusted for once-off costs, including TRF settlement in 2024\/25.<\/em><\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"

The surge was driven by excellent performance in its consumer mobile and fibre businesses.<\/p>\n","protected":false},"author":341042,"featured_media":618823,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[41906],"tags":[6851,33386,1355,109,689],"class_list":["post-651346","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-telecoms","tag-bcx","tag-openserve","tag-serame-taukobong","tag-telkom","tag-telkom-mobile"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/651346"}],"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\/341042"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=651346"}],"version-history":[{"count":16,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/651346\/revisions"}],"predecessor-version":[{"id":651376,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/651346\/revisions\/651376"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/618823"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=651346"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=651346"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=651346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}