Telkom has seen remarkable growth over the past eighteen months, with a 129% increase in returns for investors, building a robust trust in the company.
Established on October 1, 1991, Telkom emerged from the reorganisation of the Department of Posts and Telecommunications (DPT), which was bifurcated into the South African Post Office (SAPO) and Telkom. Initially, Telkom was focused on providing fixed-line telephone services to both businesses and residential customers in South Africa. In its inaugural year, it had 3.5 million fixed telephone lines and a burgeoning demand, with 89,661 still operating through manual exchanges.
While its primary revenue source was phone calls, Telkom also provided telematics services and ran a C450 mobile phone network. Over the last thirty years, the company has evolved from a conventional fixed-line telecommunications provider into a comprehensive ICT service provider, offering a wide array of fixed, mobile, and IT products to both retail and wholesale markets.
In the nineties, Telkom, which held a 50% stake in Vodacom, was the telecommunications frontrunner in South Africa, benefiting from a legally protected monopoly in the fixed-line segment as Vodacom experienced exceptional growth. However, the landscape shifted dramatically after Telkom lost its monopoly and sold its Vodacom stake in 2009.
Despite intensified competition, Telkom has maintained service to millions of South African households and businesses, though adapting to a fast-changing telecommunications market has proved challenging. Several missteps by past leadership resulted in significant financial losses, eroding investor confidence. Between June 2019 and June 2024, the company’s share price plummeted by 75%, reflecting market sentiment.
Under the leadership of CEO Serame Taukobong, Telkom is turning its fortunes around, with a renewed focus on improving performance and rebuilding investor confidence. Over the past eighteen months, the impact of its strategic changes has begun to manifest, including improved financial results and robust growth in its mobile division, driven by a successful data-led strategy.
On November 18, 2025, Telkom published its interim results for the six months ended September 30, 2025, which once again showed positive results. Revenue grew by 3.4% to reach US$1.2 billion, largely boosted by strong mobile data revenue and fibre-related service increases. Data revenue rose 7.9%, accounting for 59.1% of total revenue, clearly demonstrating the effectiveness of its data-centric initiative.
Efficient cost management has further solidified its operational performance, with earnings before interest, taxes, depreciation, and amortisation (EBITDA) increasing by 7.4%. Telkom’s EBITDA margin rose by 1.0 percentage point to 27.2%, slightly surpassing its medium-term guidance range of 25% to 27%.
“These results underline our strong positioning to meet our medium-term objectives,” stated Taukobong. “In the latter half of the year, we will concentrate on sustaining revenue growth across the Group while continuing our cost-optimisation strategies.”
He highlighted that Telkom intends to maximise its unique advantage of an extensive fibre network to foster growth. The market has acknowledged Telkom’s leadership, as reflected in its strong share price performance. From July 2024 to November 2025, Telkom’s share price soared by over 120%, reflecting optimism in the company.
