The state-owned company seeing 90% growth in one year
Telkom is expecting a massive rise in earnings in the first half of the 2026 financial year, with the partly state-owned company seeing its share price nearly double in the span of 12 months.
Telkom remains a state-owned company, with the government owning 40% of the company. The Public Investment Corporation (PIC) also holds a 10% stake in a telco company, even if the ownership technically lies with the PIC’s clients.
Its strong performance has seen its share price rise dramatically over the last year, with growth of 89% to around R50 per share.
The latest trading statement for the six months ending 30 September highlights the company’s strong performance.
In a trading statement, Telkom said that basic earnings per share for continuing operations are expected to increase by between 80% and 90%, a range from 311.8 to 329.1 cents per share.
Headline earnings per share from continuing operations are also expected to double, rising by between 105% and 115% to a range of 301.1 and 315.8 cents per share.
However, when looking at total operations, basic earnings per share should rise by between 43% and 51%.
Total headline earnings per share are expected to rise by between 57% and 65% to the same range seen in the continuing operations results.
Telkom stated that the increase in basic and headline earnings per share from continuing operations was primarily due to one-time costs related to the Telkom Retirement Fund (TRF).
Over the prior period, the group recorded an after-tax loss of R451 million due to the derecognition of the TRF. It also saw an after-tax impact of R117 million relating to restructuring costs.
The group also said that underlying operating performance and focused structural cost containment have contributed to the earnings growth.
Total operations included Swiftnet in the prior period, which was disclosed as a discontinued operation, with the R6.5 billion sale concluded during FY2025.
The difference between basic and headline earnings per share relates to the exclusion of the net profit on disposal of property, plant & equipment and intangible assets.
This was, however, offset by the net write-offs on property, plant & equipment and intangible assets.
The official interim results for the six months ending 30 September 2025 are due on 18 November 2025.
| Continuing operations | Results for the six months ended 30 Sept 2024 (cents) | Estimated earnings per share range (cents) – 30 Sept 2025 | Estimated increase (%) |
|---|---|---|---|
| BEPS | 173.2 | 311.8 – 329.1 | 80% – 90% |
| HEPS | 146.9 | 301.1 – 315.8 | 105% – 115% |
| Weighted average number of ordinary shares | 490 870 665 | 492 453 984 | — |
| Total operations | Results for the six months ended 30 Sept 2024 (cents) | Estimated earnings per share range (cents) – 30 Sept 2025 | Estimated increase (%) |
|---|---|---|---|
| BEPS | 217.6 | 311.8 – 329.1 | 43% – 51% |
| HEPS | 191.5 | 301.1 – 315.8 | 57% – 65% |
| Weighted average number of ordinary shares | 490 870 665 | 492 453 984 | — |
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