Wrap Text
Group Interim Results for the six months ended 30 September 2025
Telkom SA SOC Limited
Registration number 1991/005476/30
JSE share code: TKG
JSE bond code: BITEL
ISIN: ZAE000044897
("Telkom" or the "Company" or the "Group")
Group Interim Results for the six months ended 30 September 2025
Group highlights
- Group revenue up 3.4% to R22 104 million, driven by robust mobile data
revenue growth (+10.3%) and fibre-related data revenue (+12.3%).
- Group data revenue up 7.9% contributing 59.1% to total revenue.
- Group EBITDA(1,2) up 7.4%(3) to R6 023 million, due to revenue growth
and ongoing cost optimisation initiatives, resulting in the EBITDA margin(1)
expanding to 27.2%.
- Net debt to EBITDA(1,2,4) stable at 0.7x indicating a robust financial position
and allowing for investment in future growth opportunities.
- Free cash flow stable at R724 million, reflecting disciplined and sustainable
cash generation.
- Headline earnings per share (HEPS)(1) up 16.4%(3) to 305.6 cents underscoring
the benefits of focused execution and improved profitability.
- Basic earnings per share (BEPS) up 12.7%(3) to 325.7 cents.
Summary financial results
Financial indicators
Continuing operations Reported Reported Reported Adjusted(3) Adjusted(3)
Rm H1 FY2026 H1 FY2025 % change H1 FY2025 % change
Revenue 22 104 21 382 +3.4
EBITDA(1,2,4) 6 023 4 828 +24.8 5 606 +7.4
Profit for the period 1 604 853 +88.0 1 421 +12.9
Dividend (cps) - - - - -
Financial indicators
Total operations
(Continuing and discontinued) Reported Reported Reported Adjusted(3) Adjusted(3)
Rm H1 FY2026 H1 FY2025 % change H1 FY2025 % change
Basic earnings per share (cents) 325.7 217.6 +49.7 333.3 (2.3)
Continuing 325.7 173.2 +88.0 288.9 +12.7
Discontinued(5) - 44.4 (100.0) 44.4 (100.0)
Headline earnings per share (cents)(2) 305.6 191.5 +59.6 307.2 (0.5)
Continuing 305.6 146.9 +108.0 262.6 +16.4
Discontinued(5) - 44.6 (100.0) 44.6 (100.0)
1 Earnings before interest, tax, depreciation and amortisation.
2 This is a non-IFRS financial measure.
3 Adjusted H1 FY2025 (prior period) financial measures exclude the impact of the
R160 million restructuring cost, and the Telkom Retirement Fund derecognition
loss of R618 million in continuing operations.
4 EBITDA is annualised to ensure comparability between EBITDA and the cumulative
balance of net debt when determining the net debt to EBITDA ratio.
5 Swiftnet continued to meet the IFRS 5 requirements and was classified as
held for sale and was therefore excluded from the results for continuing
operations. Telkom disposed of its 100% equity shareholding in Swiftnet
effective 31 January 2025.
Message from Serame Taukobong, Group CEO
Solid performance sustains momentum built in the previous financial year
The Group's data-led strategy delivered quality earnings and growth. We built on our
previous strong performance and demonstrated the competitive advantage of the group's
data-led strategy in the challenging operating conditions of the first half of FY2026.
Telkom's commitment to delivering quality earnings and growth from its unique position
as the backbone for South Africa's digital future is reflected in sustained performance
delivered for the period.
We laud the determination and commitment of all our employees in achieving these results.
Our people focused relentlessly on executing our strategy and improving competitiveness.
The Group continues leveraging the advantage of its extensive fibre footprint, consistently
built over a long time to drive growth through strong mobile offerings in service and data.
A remarkable example of such competitiveness is that our Mobile business delivered market
leading service revenue growth for the 11th consecutive quarter to June 2025, since its
establishment 15 years ago.
Data-led strategy continues to drive growth
Telkom Consumer
- Mobile service revenue grew by 7.9%
- 26.7% increase in mobile data subscriber base to 18.5 million
- Mobile EBITDA margin expanded to 27.6%
Openserve
- Overall revenue grew by 2.7%
- Fibre-related data revenue grew by 10.1%
- Market leading fibre to the home connectivity rate of 52.0%
- EBITDA margin of 33.3%
BCX
- Fibre-related data revenue increased by 13.8%
- Cloud services revenue growth of 10.4%
- EBITDA margin improved to 9.9%
Outlook
Looking ahead to the remainder of the financial year, we are encouraged by the performance
we achieved in the first-half. Delivering quality earnings and growth by achieving our targets
and medium-term guidance remains our top priority. Our data-led strategy will continue to act
as a catalyst for growth as we strengthen our unique position as the backbone of South Africa's
digital future.
The country's economic growth is expected to be subdued in 2025. We also face intensifying
competition in both mobile and fibre, coupled with muted corporate ICT spending. These
conditions underscore the importance of leveraging the advantages of our extensive fibre
footprint, consistently built over a long time to drive growth through strong mobile
offerings in service and data, and sharpening our competitiveness through the OneTelkom
approach.
Pro forma financial information
Certain financial information presented in this results announcement constitutes pro forma
financial information in terms of the JSE Listings Requirements. The Group presents various
non-IFRS financial measures in the results announcement, including (i) net debt and
(ii) free cash flow (FCF) for both the current and prior period. In addition to these non-IFRS
financial measures, the financial information in the prior period excludes the impact of the
loss from the settlement of the Telkom Retirement Fund and restructuring costs with the related
tax impact. These measures constitute pro forma financial information and are annotated throughout
the results announcement. The pro forma financial information is presented to achieve comparable
year-on-year analysis and to highlight the underlying performance of the business. The pro forma
financial information was presented to illustrate the impact of the pro forma adjustments on the
reviewed condensed consolidated interim financial statements for the six months ended
30 September 2024 to achieve a comparable year-on-year analysis and show the adjusted performance
of the business. The pro forma adjustments were determined in terms of the Group accounting policies
disclosed in the reviewed condensed consolidated interim financial statements for the six months ended
30 September 2024. The pro forma financial information is the responsibility of the Directors and
because of its nature, may not fairly present the financial position, changes in equity, results of
operations or cash flows of Telkom.
Further information
The short-form announcement is the responsibility of the Board. It is only a summary of the
information contained in the full interim financial results announcement for the period ended
30 September 2025 and does not contain full or complete details. Any investment decisions should
be based on the full interim financial results announcement published on the JSE's cloud link on
Tuesday, 18 November 2025 and also available on Telkom's website.
The full interim financial results announcement, which includes the Group's external auditor,
PricewaterhouseCoopers Inc. unmodified review report, is available on the Company's website at:
https://group.telkom.co.za/ir/financialinformation.html and on the JSE's cloud link at:
https://senspdf.jse.co.za/documents/2025/jse/isse/TKG/ie2025.pdf.
Copies of the Telkom reviewed condensed consolidated interim financial statements for the
six month period ended 30 September 2025 may be requested from our Group Company Secretary,
Ephy Motlhamme at motlhae1@telkom.co.za
Mvuleni Geoffrey Qhena Serame Taukobong Nonkululeko Dlamini
Chairman Group Chief Executive Officer Group Chief Financial Officer
18 November 2025
Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Ltd
Investor relations contact
Kamohelo Selepe
selepekv@telkom.co.za
Media contact
Batlile Phaladi
phaladrm@telkom.co.za
Date: 18-11-2025 07:15:00
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