Telkom has seen its revenue continue to grow in 2026, driven by its mobile subscriber base of over 25 million people.<\/p>\n\n\n\n
In a trading statement, the telecommunications giant reported revenue of over R11 billion for the quarter ended 30 June.<\/p>\n\n\n\n
This is a 2.6% year-on-year increase from R10.8 billion, with the company largely attributing the growth to its mobile data and prepaid services.<\/p>\n\n\n\n
The company saw a 9.1% increase in prepaid service revenue and an 11.4% increase in mobile data revenue, leading to group data revenue of approximately R6.9 billion.<\/p>\n\n\n\n
The growth in Telkom’s mobile earnings meant that data revenue accounted for 62.4% of the group’s revenue, increasing from 58.8% year-on-year.<\/p>\n\n\n\n
Telkom CEO, Serame Taukobong said the company had started the year with strong growth in its mobile services through Mobile and Openserve.<\/p>\n\n\n\n
“Mobile and Openserve delivered solid revenue and EBITDA growth, as mobile service revenue re-accelerated compared to the preceding quarter,” he said.<\/p>\n\n\n\n
The company’s EBITDA grew by 10.0%, resulting in Group EBITDA margin expanding by 1.8 ppts to 27.7% for the quarter. <\/p>\n\n\n\n
EBITDA earnings reached roughly R3.1 billion, an increase from the previous year’s R2.8 billion.<\/p>\n\n\n\n
It said that its drive for cost efficiencies resulted in total expenses declining by 1.9% for the quarter, mainly due to decreases in roaming costs in Mobile, maintenance costs, and impairment of receivables.<\/p>\n\n\n\n
The company’s total capital expenditure (Capex) was R888 million, a 19.4% decrease from the previous financial year.<\/p>\n\n\n\n
This expenditure was mainly focused on Telkom’s Mobile business and Openserve, its fibre network operator.<\/p>\n\n\n\n
Telkom invested R421 million in its Mobile business, primarily to expand network capacity and upgrade its base stations.<\/p>\n\n\n\n
Openserve saw R379 million invested in modernising and expanding its network, resulting in over 26,000 households being connected to the system in the last quarter.<\/p>\n\n\n\n
| <\/td> | 2026<\/strong><\/td>| 2025<\/strong><\/td> | Year-on-year change<\/strong><\/td><\/tr> | Group revenue <\/strong><\/td> | R11.1 billion<\/td> | R10.8 billion<\/td> | 2.6%<\/td><\/tr> | Group data revenue<\/strong><\/td> | R6.9 billion<\/td> | R6.4 billion<\/td> | 8.8% <\/td><\/tr> | Group EBITDA<\/strong><\/td> | R3.1 billion<\/td> | R2.8 billion<\/td> | 10.0%<\/td><\/tr> | Group EBITDA margin<\/strong><\/td> | 27.7%<\/td> | 25.9%<\/td> | 1.8 ppts<\/td><\/tr> | Capex<\/strong><\/td> | R888 million<\/td> | R1.1 billion<\/td> | -19.4%<\/td><\/tr> | Capex intensity<\/strong><\/td> | 8.0%<\/td> | 10.2%<\/td> | -2.2 ppts<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n | Mobile services leads the way<\/h2>\n\n\n\nIn total, service revenue for Telkom’s Mobile business increased by 6.4%, supported by 9.1% growth in prepaid service revenue.<\/p>\n\n\n\n Telkom said the growth came from the execution of its regional strategy, which led to a large increase in revenue from non-metro regions.<\/p>\n\n\n\n The company’s mobile data traffic increased by approximately 19.6%, while data subscribers grew to 78.4% of the total base.<\/p>\n\n\n\n Prepaid subscribers also increased by 7.1% to 22.3 million, resulting in a strong EBITDA margin of 29.1% for Telkom’s mobile unit.<\/p>\n\n\n\n Openserve saw its revenue increase by 5.6% due to growth in fibre-related data revenue, while external revenue grew by 18.2%.<\/p>\n\n\n\n The fibre internet provider saw its connectivity rate improve to 53.9%, driven by the business’s connection-led strategy.<\/p>\n\n\n\n Telkom’s digital solutions subsidiary, BCX, saw its revenue decline by 10.9% in the last quarter, despite relative stability in its IT services revenue.<\/p>\n\n\n\n The bulk of the subsidiary’s losses came from its converged communications revenue, which declined 11.1% year-on-year.<\/p>\n\n\n\n It also saw its IT hardware and software revenue drop by approximately 30% to R424 million, from R607 million in the first quarter of the previous financial year.<\/p>\n\n\n\n This led BCX to report total revenue of approximately R2.6 billion, while EBITDA marginally improved by 2.6%.<\/p>\n\n\n\n “EBITDA increased due to improved margins in the IT services business, lower impairment of receivables and continued disciplined cost management,” Telkom said.<\/p>\n\n\n\n The company said BCX’s stability in IT services revenue is commendable, given that the IT sector remains constrained.<\/p>\n\n\n\n The decline in converged communications revenue was attributed to an ongoing managed migration to fibre-based platforms, which have caused pricing challenges.<\/p>\n","protected":false},"excerpt":{"rendered":" Telkom has seen continued growth in the first quarter of the new financial year, driven by its Mobile services.<\/p>\n","protected":false},"author":131,"featured_media":799748,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"posted","_sma_x_autopost_error":"","_sma_x_post_id":"2084222000160035114","_sma_facebook_post_id":"191437357620492_2165392464281153","_sma_instagram_post_id":"18119871457820290","_sma_x_attempts":1,"footnotes":""},"categories":[21],"tags":[4445,10650,65],"class_list":["post-868502","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-telecommunications","tag-bcx","tag-openserve","tag-telkom"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/868502","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/131"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=868502"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/868502\/revisions"}],"predecessor-version":[{"id":868536,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/868502\/revisions\/868536"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/799748"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=868502"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=868502"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=868502"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}} |