Telecommunications

Good times for Telkom

Luke Fraser

 ·27 May 2026

Telkom says that it is expecting a large increase in profit for the 2026 financial year, even if accounting rules complicate the picture.

The group is finalising its results for the period, with it expecting that its data-led strategy will continue
delivering enhanced profitability.

The group expects its basic earnings per share (BEPS) from continuing operations to increase by 20% to 30% during the financial year, to a range between 679.2 and 735.8 cents per share.

Its headline earnings per share (HEPS) from continuing operations will rise by 45% to 55%, to a range of 677.9 to 724.6.

However, when looking at total operations, the group expects its BEPS to decrease by between 52% and 56%, to the 679.2-735.8 cents per share range.

Headline earnings per share from total operations will nevertheless grow by 24% and 33% to a range of 677.9-724.6 cents per share.

The group said that 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.

The prior years’ BEPS and HEPS from continuing operations were also negatively impacted by the once-off after-tax derecognition loss of R451 million for the Telkom Retirement Fund.

The prior year HEPS excluded the gain on sale of properties of R654 million, which is far higher than the R194 million recorded in the current year.

Total operations included the gain on disposal of Swiftnet in the prior year, which was disclosed as a
discontinued operation, and the sale was concluded in FY2025.

The group said that the difference between BEPS and HEPS relates to the exclusion of the net profit on the disposal of property, plant & equipment and intangible assets.

This was offset by the net write-offs on property, plant & equipment and intangible assets. The group will provide more specific figures on 2 June 2026 when its financial results are released.

The market responded well to the update, with the Telkom share price rising by 5% in the early hours of trade following the announcement.