One state-owned company shooting the lights out in South Africa

Telkom expects to report a significant surge in its earnings from continuing operations for its 2026 financial year.

This outperformance comes as Telkom’s turnaround continues to take shape, with the company focusing on structural cost optimisation and debt reduction, leading to lower finance charges.

While the group’s earnings from its total operations will not look as healthy, this is due to the high base in the prior year related to Telkom’s disposal of its Swiftnet business.

On Wednesday, 27 May, Telkom released its projected earnings for the year through March 2026.

The group expects the following changes to its earnings from continuing operations:

• Basic earnings per share up by 20% to 30%
• Headline earnings per share up by 45% to 55%

Telkom said this earnings growth was primarily driven by a strong underlying operating performance, continued focus on structural cost optimisation, and lower finance charges resulting from reduced debt levels.

The group’s 2026 earnings also benefited from a lower 2025 base, as the prior year’s earnings were negatively impacted by once-off expenses related to the Telkom Retirement Fund and restructuring costs.

For its earnings from total operations, which include both continuing and discontinued operations, Telkom expects the following changes:

• Basic earnings per share down by 56% to 52% 
• Headline earnings per share up by 24% to 33%

Telkom explained that its total operations included the gain on the sale of its Swiftnet in the 2025 financial year. 

The sale of its Swiftnet business, which housed the group’s masts and towers, raised around R6.6 billion in proceeds for the telecoms giant.

This sale significantly boosted Telkom’s 2025 financial year results, for which the company reported a 25.1% increase in EBITDA and a 300% increase in profit.

Telkom plans to release its full results for the 2026 financial year on 2 June 2026.