JOHANNESBURG, June 2 – South African telecommunications operator Telkom reported a strong increase in annual earnings, driven by sustained growth in mobile data consumption, fibre connectivity services and improvements in operational efficiency.
For the financial year ended March 31, the company recorded headline earnings per share of 708.5 cents, representing a 30.1% increase from 544.5 cents reported in the previous year.
The performance reflects continued momentum in Telkom’s digital connectivity businesses as consumers and enterprises increase their demand for broadband and mobile data services.
Group revenue rose 1.4% year-on-year to 44.5 billion rand (about $2.7 billion), supported by growth across key telecommunications segments.
The company’s mobile business remained a major contributor to performance, with prepaid service revenue increasing by 10.3% during the period.
This helped drive a 6.8% increase in overall mobile service revenue as customer demand for data-intensive applications and digital services continued to expand.
Mobile data revenue grew by 10.5%, reinforcing the importance of data services as a key growth engine for the business.
Telkom also benefited from continued expansion in its fibre network operations, with fibre-related data revenue increasing by 6.3% over the year.
The results highlight the growing role of high-speed connectivity infrastructure in supporting South Africa’s digital economy and evolving consumer behaviour.
Profitability improved significantly during the period. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 13.3% to 12.5 billion rand, supported by structural cost efficiencies and improved operating performance.
As a result, the company’s EBITDA margin expanded to 28.1%, demonstrating stronger operational leverage despite modest revenue growth.
The improved financial performance also enabled Telkom to enhance shareholder returns.
The company increased its targeted dividend payout ratio to between 40% and 60% of free cash flow, up from the previous range of 30% to 40%.
It also declared a final dividend of 270 cents per share, representing a 65% increase compared with the prior year.
The latest results underscore Telkom’s ongoing transition toward data-driven services, with mobile connectivity, fibre infrastructure and digital solutions increasingly contributing to revenue growth and profitability.
