Telkom’s mobile subscribers grew by 21.6% to a record 24 million, in the third quarter, including a 17.3% increase in mobile data subscribers.
This emerged when the JSE-listed telecommunications firm today announced its financial and operational results for the third quarter ended 31 December, “demonstrating continued momentum across the group through its data-led strategy”.
It says the results highlight strong data revenue performance, significant earnings before interest, taxes, depreciation and amortisation (EBITDA) expansion, and gains in subscriber and network growth.
During the period, Telkom Group revenue increased 0.9% year-on-year to R10.9 billion, driven by strong demand for data-led services.
The firm notes that mobile service revenue grew 9.6% to R5.4 billion – outperforming the broader South African mobile market – while fixed data and information technology service revenues increased by 4.7% and 3.2%, respectively.
Year-to-date revenue reached R32.3 billion, up 1.6%, says Telkom.
Group EBITDA surged 28% to R2.9 billion, with EBITDA margins expanding by 5.8 percentage points to 27.2%.
Adjusted year-to-date EBITDA stood at R8.59 billion (26.5% margin), the company adds.
Telkom reveals that fibre connectivity continued its rapid expansion, with homes passed growing by 13.1% to 1.3 million and connected homes up 17.6%.
Mobile and fixed data traffic increased by 22.2% and 23.7%, respectively, underscoring the success of Telkom’s data-led strategy, it adds.
The company points out that strong operational performance, combined with R417 million in property disposal proceeds during the quarter, maintained the resilience of Telkom’s balance sheet, with interest-bearing debt reduced by 2.7% since September 2024.
“These results provide further proof that the execution of Telkom’s strategy is on track, delivering profitable growth,” says Serame Taukobong, Telkom group CEO.
“We are excited by the growing momentum across our business units, and we remain confident in our ability to meet our medium-term growth objectives as we continue to invest in our infrastructure, network and digital services.”
Telkom Consumer’s performance was bolstered by value-added offerings and strong mobile data performance, says the company.
It adds that the prepaid segment grew by 25% to 21.0 million subscribers, while the postpaid base remained stable, with improved average revenue per user performance.
EBITDA for the unit surged by 51.4% to R1.4 billion, with a 6.5 percentage point increase in EBITDA margin.
Fibre unit Openserve maintained a steady performance, with revenue of R3.1 billion, reflecting ongoing fibre service expansion and efficiency gains. Homes passed increased by 154 942 (13.1%) and connected homes by 100 115 (17.6%), with data consumption growing by 23.7%.
Telkom notes that efficiency initiatives, including network modernisation and renewable energy programmes, contributed to a 5.4% increase in EBITDA to R1.06 billion and an improved margin of 34.4%.
Business unit BCX achieved a higher margin for IT services, with revenue growing by 6.8% to R1.2 billion. EBITDA expanded 36% to R438 million, with margins improving by five percentage points to 15%, reflecting the transition to scalable, higher-margin service offerings, Telkom explains.
While showing steady performance, it says, BCX revenue declined by 9.7% to R2.9 billion, due to a strategic shift away from lower-margin hardware/software revenue.
According to the firm, the Swiftnet disposal remains on track, with regulatory approvals in place and the transaction expected to close by the end of the 2025 financial year.
“Telkom is well-positioned to continue its transformation into a leading digital enabler. With a strong operational foundation, ongoing network investments and a clear focus on data connectivity, the group expects continued momentum in the remaining quarter of FY2025 and beyond.
“The strategic disposal of Swiftnet, combined with ongoing cost optimisation and smart capital expenditure, further solidifies Telkom’s robust financial position and long-term growth prospects.”
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