State-owned company sees 88% jump in profit
Telkom has seen a double-digit rise in its earnings, as the company continues to be one of the best-performing state-owned companies.
In its interim results for the six months ended 30 September 2025, the group saw its revenue rise by 3.4% to R22.1 billion.
This was driven by robust mobile data revenue growth of 10.3% and fibre-related data revenue of 12.3%.
On a reported basis, the group’s profit for the year increased by 88% to R1.604 billion. Basic earnings per share also saw a 88% rise to 325.7 cents per share.
The group’s reported earnings saw much larger increases than the group’s adjusted earnings, as reported earnings do not include the performance of Swiftnet in the prior financial year.
Telkom sold its tower and mast business, Swiftnet, for R6.5 billion in the prior financial year to a consortium led by infrastructure investor Actis.
“The Group’s data-led strategy delivered quality earnings and growth,” said Serame Taukobong, Telkom Group CEO.
“We built on our previous strong performance and demonstrated the competitive advantage of the group’s data-led strategy in the challenging operating conditions of the first half of FY2026.”
Taukobong added that the group continues leveraging the advantages of its extensive fibre footprint.
The company is also looking to drive growth via strong mobile offerings in service and data.
He noted that an example of Telkom’s competitiveness can be seen in its mobile business, which has delivered market-leading service revenue growth for the 11th consecutive quarter.
| 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) |
One of the best state-owned companies
Telkom is a partly state-owned company, with the government owning a 41% stake. The Minister of Communications and Digital Technologies serves as the government’s representative.
The state-owned Public Investment Corporation (PIC) is also reported to own over 10% of the company, although this ownership is actually attributed to the PIC’s clients.
Telkom has experienced a significant increase in its share price over the past year, rising by nearly 70%. The stock also remains relatively cheap with a price-to-earnings ratio of under 10.
The strong performance of Telkom differs from several other state-owned institutions that have required billions of bailouts to stay afloat.
Looking ahead, Telkom is encouraged by the performance it achieved in the first half of the 2026 financial year.
The group is looking to deliver quality earnings and growth by achieving its targets, and medium-term guidance remains a priority.
“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.”
“The country’s economic growth is expected to be subdued in 2025. We also face intensifying competition in both mobile and fibre, coupled with muted corporate ICT spending.”
Loading ...