Telkom has delivered a robust performance in its interim results for the six months ended 30 September 2025, cementing its position as one of South Africa’s best-performing state-owned enterprises. The group’s revenue rose by 3.4% to R22.1 billion, driven primarily by strong growth in data services. Mobile data revenue surged 10.3%, while fibre-related data revenue climbed 12.3%, reflecting the success of Telkom’s data-led strategy.
On a reported basis, profit for the period jumped 88% to R1.604 billion, with basic earnings per share (EPS) also increasing by 88% to 325.7 cents. The sharp rise in reported earnings compared to adjusted earnings is largely due to the exclusion of Swiftnet’s performance in the prior year. Telkom sold its tower and mast business, Swiftnet, for R6.5 billion in the previous financial year to a consortium led by infrastructure investor Actis.
Serame Taukobong, Telkom Group CEO, stated:
The Group’s data-led strategy delivered quality earnings and growth. We built on our previous strong performance and demonstrated the competitive advantage of our strategy in the challenging operating conditions of the first half of FY2026.
Taukobong emphasized that Telkom continues to leverage its extensive fibre footprint while driving growth through competitive mobile offerings. The company’s mobile business has achieved market-leading service revenue growth for 11 consecutive quarters, underscoring its resilience and competitiveness.
| Financial indicator | Reported H1 FY2026 | Reported H1 FY2025 | Reported % change | Adjusted H1 FY2026 | Adjusted H1 FY2025 | Adjusted % change |
|---|---|---|---|---|---|---|
| Revenue | 22 104 | 21 382 | +3.4% | — | — | — |
| Mobile service revenue | 11 027 | 10 220 | +7.9% | — | — | — |
| Fibre-related data revenue | 4 102 | 3 654 | +12.3% | — | — | — |
| Total expenses | 16 765 | 17 189 | +2.5% | 16 411 | — | (2.2%) |
| Profit for the period | 1 604 | 853 | +88.0% | 1 421 | — | +12.9% |
| Basic earnings per share (cents) | 325.7 | 173.2 | +88.0% | 288.9 | — | +12.7% |
| Headline earnings per share (cents) | 305.6 | 146.9 | +108.0% | 262.6 | — | +16.4% |
| Net debt to EBITDA (times) | 0.7 | 1.5 | (0.8) | 1.3 | — | (0.6) |
Telkom remains partly state-owned, with the government holding a 41% stake, represented by the Minister of Communications and Digital Technologies. The Public Investment Corporation (PIC) also owns over 10%, though this is attributed to its clients.
Telkom’s share price has surged nearly 70% over the past year, and with a price-to-earnings ratio below 10, the stock remains relatively attractive compared to peers. This strong performance contrasts sharply with other state-owned entities that have required significant bailouts to remain operational.
Looking ahead, Telkom aims to maintain momentum by delivering quality earnings and meeting its medium-term targets. The company acknowledges challenges such as subdued economic growth in 2025, intensifying competition in mobile and fibre markets, and muted corporate ICT spending. “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,” Taukobong concluded.
