Sentech, the signal distributor in South Africa, surpassed most of its operational and financial targets in the fourth quarter of the 2025/26 financial year, meeting 89% of its goals, although it still fell short of its aspirations for new revenue growth.
Under the leadership of CEO Tebogo Leshope, Sentech serves as South Africa’s state-owned provider of broadcasting signal distribution and communications infrastructure. Reporting to the Department of Communications and Digital Technologies, Sentech plays an essential role in enabling television and radio broadcasters to effectively reach audiences throughout the country.
In addition to distributing terrestrial TV and radio signals, Sentech provides broadband, wireless, and satellite connectivity services to various sectors, including government entities, enterprises, and telecommunications operators. The company operates an extensive network of transmission sites across the nation and supports government initiatives to enhance digital connectivity and communications in rural and underserved communities, while pursuing commercial growth and financial viability.
Presenting its third- and fourth-quarter business performance report to Parliament, Sentech noted a significant improvement over the previous quarter, with achievement against corporate key performance indicators increasing by 19 percentage points. The state-owned entity reported that its continuing business revenue surpassed expectations, finishing the quarter 9% above budget, largely driven by the stable performance of its media division.
For the financial year ending March 31, 2026, Sentech reported total revenue of R1.64 billion, 2% higher than the budgeted figure. The company’s profitability also saw improvement, with its cumulative earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin reaching 23%, exceeding the annual target of 18%. However, challenges persisted in generating new revenue, with the cumulative new revenue margin ending the year at 23%, falling short of the 36% target and down from the third quarter’s 26%.
Despite these revenue growth challenges, Sentech maintained exceptional network reliability, achieving a weighted-average network availability of 99.89% by the end of the fourth quarter, exceeding the service-level agreement target of 99.5%. The company also performed well in several strategic operational metrics.
Sentech connected 2,212 hotspots and facilities by the end of the year, surpassing the revised target of 2,200. This target had been adjusted from the original goal of 5,800 due to funding constraints affecting the government’s SA Connect broadband program. While funding limitations in the third quarter had slowed network deployment, efforts to catch up allowed Sentech to exceed its revised target by year-end.
Progress was also made on Sentech’s flagship innovation project, the 5G-based Smart Village platform, which was successfully implemented during the year, connecting 1,063 users and exceeding the target range of 800 to 1,000 users during its acquisition phase. Furthermore, Sentech reported remarkable improvements in its data maturity capabilities, achieving level four against a target of level two. Customer experience targets were also exceeded, with an 81% customer satisfaction score against a target of 71%, while brand equity reached 85%, surpassing the targeted range of 76% to 80%.
The organisation noted that 85% of recommendations from customer satisfaction surveys had been implemented, and execution of its brand and communication plan had exceeded expectations at 123%. Sentech is currently awaiting the results of its external audit, with a clean audit among its annual performance goals.
Regarding its satellite strategy, Sentech announced that its Infosat subsidiary is now operational and prepared to implement the satellite program, with deployment already underway and financial and management systems in place.
From a workforce perspective, Sentech concluded the financial year with a total of 621 employees, comprising 420 permanent and 201 temporary. Employee costs accounted for 32% of total expenditures, slightly above the 30% target, while turnover remained low at 1.67%, well below the 10% threshold. However, the company continues to fall short of certain employment equity goals, with women making up 41% of the workforce against a target of 50%, and employees living with disabilities accounting for only 1.2% of staff, which is below the 2% target.
On the procurement front, Sentech exceeded various transformation targets, spending 87.9% of its procurement on black-owned enterprises, surpassing the 75% target, and 86.9% on qualifying small and medium enterprises, well above the 60% goal. However, procurement from black female-owned businesses decreased to 35.66%, falling short of its target.
