Telkom has achieved remarkable growth in mobile subscribers, increasing by 21.6% to reach a record 24 million in the third quarter, supported by a 17.3% rise in mobile data subscribers. This increase was highlighted in the company’s financial and operational results for the third quarter ending December 31, showcasing its data-led strategy’s effectiveness.
The results revealed a solid data revenue performance, accompanied by substantial growth in earnings before interest, taxes, depreciation, and amortisation (EBITDA), alongside gains in subscriber numbers and network expansion. For the quarter, Telkom’s revenue rose 0.9% year-on-year to US$590 million, driven primarily by robust demand for data-focused services.
Mobile service revenue climbed 9.6% to US$292 million, outperforming the wider South African mobile market. Additionally, fixed data and information technology service revenues increased by 4.7% and 3.2%, respectively, with year-to-date revenue totalling US$1.7 billion, marking a 1.6% increase.
A significant highlight was the surge in group EBITDA, which soared by 28% to US$157 million, leading to an expansion of EBITDA margins by 5.8 percentage points to 27.2%. Adjusted year-to-date EBITDA was reported at US$465 million, reflecting a margin of 26.5%.
Telkom also highlighted that its operational performance and proceeds from property disposals ensured a healthy balance sheet, resulting in a 2.7% reduction in interest-bearing debt since September 2024.
“These results demonstrate that our execution strategy is yielding profitable growth,” stated Serame Taukobong, CEO of Telkom. “We’re encouraged by the momentum across our business units and remain confident in achieving our medium-term growth targets. Our commitment to investing in infrastructure, networks, and digital services plays a crucial role.”
The consumer division experienced strong performance driven by value-added services and enhanced mobile data offerings, with the prepaid segment growing by 25% to 21 million subscribers. The postpaid subscriber base remained stable while showing improved average revenue per user.
While BCX showed consistent performance, it faced a 9.7% revenue decline to US$157 million due to a strategic pivot from lower-margin hardware and software sales. The planned disposal of Swiftnet continues, with regulatory approvals secured, aiming for completion by the end of the 2025 financial year.
“Telkom is on a promising path towards becoming a leading digital enabler, with a solid operational backbone, ongoing network investments, and a focus on data connectivity,” the company stated. “We anticipate sustained progress in the final quarter of FY2025 and beyond. The strategic Swiftnet disposal, in conjunction with cost optimisation and prudent capital spending, strengthens Telkom’s robust financial position and long-term growth potential.”
