Telkom has seen a strong rise in earnings for the financial year ending 31 March 2026, even though the group’s sale of Swiftnet in the prior period complicates reporting.
“These results validate our strategy for Telkom’s transformation as we confidently position the group for consistent quality earnings that allow for enhanced shareholder returns,” said CEO Serame Taukobong.
“Further validation is provided by our Mobile business, which surpassed 25 million subscribers and sustained market-leading service revenue growth for the 14th consecutive quarter.”
The CEO added that Openserve also achieved overall full-year revenue growth for the first time in nine financial years, which he said indicates that the transition to fibre services is largely complete.
Telkom Consumer saw its mobile EBITDA margin expanded to 29.0%, while Openserve’s EBITDA margin improved to 33.5%.
While Telkom’s results from continuing operations remained strong, the reported figures are impacted by the sale of Swiftnet in January 2025.
Telkom sold Swiftnet in a deal worth R6.75 billion, with the group recording a R4.7 billion gain from discontinued operations in the 2025 financial year.
Thus, in FY26, across its total operations, the group saw its profit drop from R7.5 billion to R3.6 billion.
When excluding the Swiftnet sale and focusing only on continuing operations, the group saw its profit for the year rise by 27.5% from R2.8 billion in the prior year.
The group’s earnings per share thus declined by 52.9% to 719.5 cents per share across total operations, but grew 27.1% on a continuing basis.
Headline earnings per share across the group’s total operations rose 30.1% to 708.5 cents per share.
The group thus increased its dividend by 3.5% to 270 cents per share, with a dividend payout ratio of 40% to 60%.
Continuing Operations
| Financial indicators | Reported FY2026 | Reported FY2025 | Reported % change |
| Revenue (Rm) | 44 477 | 43 880 | +1.4% |
| EBITDA (Rm) | 12 480 | 11 014 | +13.3% |
| Profit for the year (Rm) | 3 548 | 2 783 | +27.5% |
| Dividend (cps) | 270 | 261 | +3.5% |
Total Operations (Continuing and Discontinued)
| Financial indicators | Reported FY2026 | Reported FY2025 | Reported % change |
| Basic earnings per share (cents) | 719.5 | 1 528 | (52.9%) |
| Continuing | 719.5 | 566.0 | +27.1% |
| Discontinued | — | 962.0 | (100.0%) |
| Headline earnings per share (cents) | 708.5 | 544.5 | +30.1% |
| Continuing | 708.5 | 467.5 | +51.6% |
| Discontinued | — | 77.0 | (100.0%) |
Outlook
Looking ahead, the group said that its data-led strategy remains its key growth driver. The group is now focused on further increasing efficiencies and improving growth across the board.
It added that it will also allocate capex to projects that enhance returns, but will remain focused on disciplined execution.
“Capex intensity will remain within the 12%-15% range, primarily funding Mobile and fibre to support revenue growth, while cost efficiencies protect margins,” it said.
“The combined effect will be geared towards free cash flow generation and a prudent leverage position.”
With the group now entering the second year of its medium-term guidance in FY2027, the group is confident that it will continue to meet its targets outlined a year ago.
This includes mid-single-digit top-line revenue growth, maintaining a capital expenditure of 12% to 15% of group revenue and ensuring an EBITDA Margin of 25% to 27% for ongoing operations.
