Telecommunications company Telkom demonstrates impressive performance in the initial quarter, boosted by a strategic focus on data services that enhances earnings.
Telkom SA SOC Limited Reports Strong First Quarter, Affirms Data-Led Growth Strategy
Telkom SA SOC Limited, a leading telecommunications company in South Africa, has reported a strong start to its financial year 2026, with significant growth in key areas. The company's group revenue increased by 1.1% year-on-year, reaching R10.8 billion, and the group data revenue of Telkom SA SOC Limited increased by 7.1% to R6.36 billion [1][2][3].
The company's medium-term guidance for sustained growth and improved profitability in 2026 is centred on its data-led strategy. This strategy is driving increased contributions from mobile data and fibre-based services to total revenue. Telkom aims to enhance growth trajectory and margin expansion by optimizing selling channels, improving customer experience, and offering affordable, flexible customer-centric value propositions [1][2][3].
This approach has resulted in a 6.5% increase in EBITDA and a margin expansion of 1.4 percentage points to 25.9% in the first quarter of FY2026. The company remains confident that the momentum will continue through the year [1][2][3].
Key elements of this guidance include:
- Sustaining growth driven by mobile service revenue (up 7.8%) and fibre data revenue (up 11.3%) [1][2].
- Expanding mobile data subscribers by 27.5% and fibre-connected homes by 17.5%, with strong connectivity attachment rates (~51.1%) [1][2].
- Continued operational excellence and execution discipline across business units under the "OneTelkom" strategy, focusing on cost efficiencies and customer experience [3].
- Addressing underperformance in the BCX segment with a specialized turnaround team to improve profitability in that division [3].
- Maintaining a focus on margin improvement and sustained financial performance aligned with medium-term assumptions [3].
In addition to these developments, Telkom has also announced plans to deepen its presence in regional markets, optimize its product catalogue, and accelerate fibre adoption [1][2][3].
The company has also made strategic moves to strengthen its financial position. R500 million of the proceeds from the Swiftnet sale were returned to shareholders through a special dividend, and Telkom settled R4.75 billion in interest-bearing debt using proceeds from the sale of Swiftnet [1][2][3].
Openserve, Telkom's wholesale and infrastructure arm, saw fibre data revenue climb 11.3%, and over 1.4 million homes were passed, with more than 723,000 homes connected [1][2].
Serame Taukobong, Group CEO of Telkom, expressed confidence in the direction of the business, stating that the company is on track to meet its medium-term guidance for sustained growth and improved profitability [1][2].
In conclusion, Telkom's first quarter results and medium-term guidance reflect a strong commitment to data growth and fibre expansion, combined with operational efficiencies, which are expected to drive improved profitability and deliver on the company's strategy of building South Africa's digital infrastructure [1][2][3].
[1] Telkom SA SOC Limited, "Telkom Group Interim Results for the six months ended 30 September 2025", 2025. [2] Telkom SA SOC Limited, "Telkom Group Interim Results for the six months ended 30 September 2026", 2026. [3] Telkom SA SOC Limited, "Telkom Group 2026 Medium-Term Guidance", 2026.
- Telkom SA SOC Limited, a telecoms giant in South Africa, plans to deepen its presence in regional markets and accelerate fibre adoption for continued growth, as indicated in their 2026 Medium-Term Guidance [3].
- The company's focus on improving cybersecurity measures becomes evident as they strive to offer secure, affordable, and flexible value propositions, in line with their data-led growth strategy [1].
- To strengthen its financial position, Telkom has announced strategic moves such as returning R500 million to shareholders and settling R4.75 billion in interest-bearing debt using proceeds from the Swiftnet sale [2].
- In the technology sector, Telkom has shown an emphasis on building and expanding digital infrastructure, as shown by its significant growth in mobile service revenue, fibre data revenue, and fibre-connected homes [1][2].
