Telkom Boosts Performance in FY2025 through Data-Driven Approach and Operational Efficiency
Telkom's Fiscal 2025 Performance Shows Significant Growth
Telkom, South Africa's leading telecommunications company, has reported impressive financial results for the fiscal year ending March 2025. The company's mobile subscriber base grew by 13.4% to 23.2 million, with mobile data users increasing by 19.5%.
The key highlights of Telkom's performance include a staggering 299% increase in after-tax profit, primarily driven by the sale of 100% of its share capital in Swiftnet to Towerco BidCo for R6.6 billion in January 2025. This sale generated a R4.7 billion profit and boosted total profit from R1.9 billion to R7.5 billion for the year. Excluding the Swiftnet sale, Telkom achieved a net profit of R2.8 billion, reflecting a 91% increase in after-tax profit and a 6.3% net profit margin.
The company's revenue from continuing operations rose moderately by 3.3% to around R43.8 billion, surpassing expectations due to strong growth in mobile service revenue (+10.2%) and fibre-related data revenue. Telkom saw impressive double-digit growth in both mobile and fixed data traffic, which contributed to sharp increases in operating margins. EBITDA increased by 25.1% to R11.8 billion.
Cost optimization and restructuring efforts were also a significant part of Telkom's strategy. The company spent R160 million on restructuring costs linked to severance and early retirement in subsidiaries BCX and Gyro. Employee-related expenses rose from R7.9 billion to R8.8 billion.
Reflecting improved earnings, Telkom resumed dividend payments with a declared dividend of 261 cents per share. The company's 2025 integrated report emphasizes its commitment to digital innovation, network expansion, sustainable development, and aligning operations with the United Nations Sustainable Development Goals (SDGs).
Other significant developments include the expansion of Openserve's fibre footprint, with homes passed rising by 13.3 percent to over 1.37 million and homes connected increasing by 17.6 percent to 694,630. Free cash flow rose more than sixfold to R2.8 billion. The growth was primarily driven by the performance of the mobile and fibre segments.
Telkom reported a 3.3% increase in group revenue from continuing operations, reaching R43.9 billion. Group adjusted EBITDA rose by 25.1% to R11.8 billion. The proportion of women in leadership roles at Telkom rose to 35.5 percent. Total data revenue, including mobile and fibre, grew by 9.5% to R24.7 billion. The EBITDA margin increased by 4.7 percentage points to 26.9%.
Telkom invested R46 million in research and development during the year. Swiftnet reported an 11.7 percent increase in revenue to R1.2 billion and a 12.0 percent rise in EBITDA to R912 million. Telkom recorded a 32 percent reduction in Scope 1 and 2 carbon emissions compared to FY2022. Gyro generated R730 million in cash through the sale of 57 non-core sites. Net debt declined by 55.8% and the net debt to EBITDA ratio improved to 0.6x.
BCX's IT Services portfolio expanded by 2.6 percent, and the company deployed over 95,000 IoT devices. EBITDA at Openserve rose modestly by 1.8 percent to R4.0 billion. Telkom Consumer's revenue rose by 5.6% to R27.8 billion, supported by sustained demand for mobile data services.
In summary, Telkom’s fiscal 2025 performance was marked by a substantial profit boost due to the Swiftnet sale, solid underlying profit growth driven by data revenue expansion, successful cost restructuring efforts, and renewed dividend payments, all underpinned by strategic initiatives for sustainable value creation and digital transformation.
- Telkom's significant growth in mobile data users suggests that the company's infrastructure, powered by technology, is essential for the increasing demands of modern businesses, even in cloud-based financial transactions.
- As Telkom expands its fibre network with double-digit growth, it positions its technology and mobile segment more competitively for the future of work, offering businesses a robust and expansive digital infrastructure.
- With a strategic focus on sustainable development and digital innovation, Telkom's financial growth in 2025 brought investment in research and development, demonstrating their long-term commitment to new technologies and continued business success.
