Telkom says it expects continued growth.
Telkom has kicked off its financial year on a strong note, continuing its positive momentum with a 1.1% increase in group revenue to R10.8 billion for the first quarter.
The JSE-listed telecommunications firm today published its trading update for the first quarter ended 30 June.
According to the company, key growth areas include a 7.8% rise in mobile service revenue from Telkom Consumer and an 11.3% increase in fibre data revenue from Openserve.
Group earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed 6.5% to R2.8 billion, driven by structural cost efficiencies and a 1.4 percentage point improvement in the EBITDA margin to 25.9%.
Operational highlights reflect the success of Telkom’s data-led strategy, with mobile data subscribers up 27.5% to 17.2 million and a 17.5% increase in fibre-connected homes.
The company says it expects continued growth and improved profitability through disciplined operational execution.
Group CEO Serame Taukobong says: “We are pleased to report solid results for the first quarter, building on last year’s strong results. Our data-led strategy continues to be the competitive advantage enabling us to sustain our momentum into FY2026 and the increased contribution by mobile data and fibre-based services to total revenue is consistent with the assumptions supporting our medium-term objectives.
“We are optimising selling channels, continuously improving customer experience on our networks and providing customer-centric value with affordable and flexible offerings to seamlessly connect customers as we digitally transform South Africa.”
According to Taukobong, this resulted in improved profitability for the group. “I am confident this momentum will continue throughout FY2026.”
However, the company says the “excellent” results were disappointingly affected by BCX’s performance, with its revenue declining by 8.3%, while its annuity-based revenue remained flat.
“Aligned with our focus on delivering results, a specialised team is in place to continue with its work to effect a faster BCX turnaround,” says Taukobong.
