Telkom has seen an increase in earnings despite the poor performance of BCX.
The group recently returned to paying dividends after declaring a R7 billion profit in the 2024/25 financial year, with the group seeing a rise in earnings in the latest quarter. “We are pleased to report solid results for the first quarter, building on last year’s strong results,” said Group Chief Executive Officer Serame Taukobong.
“Our data-led strategy continues to be the competitive advantage, enabling us to sustain our momentum into FY2026.” “The increased contribution by mobile data and fibre-based services to total revenue is consistent with the assumptions supporting our medium-term objectives.” Taukobong is confident that this performance will continue throughout the rest of the financial year. Despite the strong Telkom results, the group was disappointed by the performance of BCX, which saw revenue decline by 8.3%, while its annuity-based revenue remained flat.The group’s revenue grew by 1.1%, cushioned by its data-led strategy. Group data revenue grew by 7.1%, mobile data by 9.6% and fibre data by 11.3%. “It is the performance of data revenue that gives us confidence that we are heading in the right direction to achieve our new medium-term guidance of mid-single digit growth,” said Taukobong. “Overall data revenue contribution as a percentage of total Group revenue advanced in line with our data-led strategy and now represents almost 60% of Group revenue.” Telkom Consumer’s mobile service revenue jumped by 7.8%, as mobile data users grew by 27.5% year-on-year, making up 72.1% of total mobile subscribers of 17.2 million. Openserve delivered strong results, driven by 11.3% growth in fibre data revenue, delivering positive top-line growth. The business unit exceeded its targeted 50% fibre connection rate by connecting 107,907 homes. It has now passed 1.4 million homes. BCX continued to focus on higher-margin IT services. Although there was growth in fibre data revenue, there was an accelerated decline in voice revenue during the quarter. “Our financial position remains strong following the settlement of R4,750 million interest-bearing debt post-year end, from the R6,618 million proceeds from the Swiftnet disposal concluded in FY2025.” “R500 million of the Swiftnet proceeds was returned to shareholders as a special dividend. The remainder of the proceeds have been retained to maintain financial flexibility for growth opportunities without compromising our resilience.” Willem Olivier shares his takeaways from the Resilience Exchange event
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