South African telecoms giant on a roll

Telkom has used the momentum it gained from an improved operational performance and the sale of its masts and towers business to deliver strong results for its 2025 financial year.

Now, the telecoms giant plans to use this momentum to grow as a focused InfraCo, using its mobile and fixed networks and ICT capabilities.

Telkom released its results for the year ended 31 March 2025 on Tuesday, 10 June, which revealed a solid performance for the company.

Telkom’s EBITDA was up 25.1% to R11.8 billion, while revenue grew by a more modest 3.3% to R43.9 billion.

The company’s profit for the year grew by nearly 300%, as the sale of its Swiftnet business significantly boosted the company’s income.

Telkom’s disposal of its masts and towers business, Swiftnet, was concluded in the 2025 financial year and raised R6.6 billion in proceeds for the telecoms giant.

Free cash flow increased by 555.2% to R2.8 billion, which the company primarily attributes to a 19.3% increase in the cash generated from operations from the underlying business.

Telkom’s total basic earnings per share rose from 385.5 cents to 1,528 cents per share, a 296% increase.

From an operational perspective, the company also reported that its mobile subscribers were up 13.4% to 23.2 million in the period.

The company said these strong results demonstrate its strengthened position as South Africa’s digital backbone and the success of its data-led strategy.

“The results reflect sustainable momentum in the group’s underlying operational performance as it sets ambitious yet achievable objectives for the next three years, underpinned by the OneTelkom approach,” the company said.

Telkom reported that double-digit growth in its mobile and fixed data traffic underscored the strength of the company’s core offerings and drove sharp increases in operating margins during the reporting period.

“The company has largely modernised its technology infrastructure and executed on a robust, detailed strategy across its operations,” CEO Serame Taukobong said. 

“The financial results for FY2025 confirm that the business has not only stabilised but has built a platform for accelerated growth.”

These strong results come after Telkom embarked on a strategy in 2023 to pursue its vision of serving as the “backbone of South Africa’s digital future”. 

Since then, the OneTelkom strategy has focused relentlessly on delivering hard results through various interventions.

This included reshaping the business through disposals, refocusing Telkom’s leadership and management structure, and setting clear goals and key performance indicators for the group and its operating divisions.

“Today, our 2025 full-year results demonstrate that the competent execution of our data-led strategy is meeting and, in some cases, exceeding expectations,” Taukobong said.

He said the group has now built a good base from which to grow as a focused InfraCo, using its mobile and fixed networks and ICT capabilities. 

On the back of these strong results, Telkom reinstated its dividend and will return a total dividend of R1.3 billion.

This includes an ordinary cash dividend of R833 million (163 cents per share) and a special dividend of R500 million (98 cents per share) from the completed disposal of Swiftnet, resulting in 261 cents per share being returned to Telkom shareholders.