Telkom announced strong financial and operational results for the third quarter ended 31 December 2024 (“Q3 FY2025”), demonstrating continued momentum across the Group through its data-led strategy.
The results highlight a solid data revenue performance, significant EBITDA expansion, and impressive gains in subscriber and network growth, reinforcing Telkom’s position as the backbone of South Africa’s digital future.
Telkom's group revenue rose 0.9% year-on-year to R10,995 million, driven by strong demand for data-led services. Mobile service revenue grew 9.6% to R5,401 million, outperforming the broader South African market, while fixed data and IT service revenues increased by 4.7% and 3.2%, respectively. Year-to-date revenue reached R32,377 million, up 1.6%. Group EBITDA surged 28.0% to R2,986 million, with margins expanding by 5.8 percentage points to 27.2%, while adjusted year-to-date EBITDA stood at R8,592 million (26.5% margin).
Mobile subscribers hit a record 24 million, up 21.6%, including a 17.3% rise in mobile data users, who now account for 62.3% of the total base. Fiber connectivity expanded rapidly, with homes passed increasing by 13.1% to 1.3 million and connected homes rising 17.6%. Mobile and fixed data traffic grew by 22.2% and 23.7%, respectively, reflecting Telkom’s data-led strategy. Strong operational performance, coupled with R417 million in property disposal proceeds, helped maintain balance sheet resilience, with interest-bearing debt reduced by 2.7% since September 2024.
“These results provide further proof that the execution of Telkom’s strategy is on track, delivering profitable growth. We are excited by the growing momentum across our business units, and we remain confident in our ability to meet our medium-term growth objectives as we continue to invest in our infrastructure, network and digital services,” said Serame Taukobong, CEO of Telkom.
Telkom Consumer’s performance was bolstered by innovative value-added offerings and strong mobile data performance. The pre-paid segment impressively grew by 25.0% to 21.0 million subscribers, while the post-paid base remained stable with improved ARPU performance.
EBITDA for the unit surged by 51.4% to R1,488 million, with a notable 6.5 percentage point increase in EBITDA margin.
Openserve maintained a steady performance with revenue of R3,107 million, reflecting ongoing fiber service expansion and efficiency gains. Homes passed increased by 154,942 (13.1%) and connected homes by 100,115 (17.6%), with data consumption growing by 23.7%.
Efficiency initiatives, including network modernization and renewable energy programs, contributed to a 5.4% increase in EBITDA to R1,069 million and an improved margin of 34.4%.
BCX achieved a higher margin for IT services with revenue growing by 6.8% to R1,208 million. EBITDA expanded 36.0% to R438 million, with margins improving by 5.0 percentage points to 15.0%, reflecting the successful transition to scalable, higher-margin service offerings. While showing steady performance, BCX revenue declined by 9.7% to R2,913 million due to a strategic shift away from lower-margin hardware/software revenue.
The Swiftnet disposal remains on track, with regulatory approvals in place and the transaction expected to close by the end of the 2025 financial year.
Telkom is well positioned to continue its transformation into a leading digital enabler. With a strong operational foundation, ongoing network investments, and a clear focus on data connectivity, the Group expects continued momentum in the remaining quarter of FY2025 and beyond.
The strategic disposal of Swiftnet, combined with ongoing cost optimization and smart capital expenditure, further solidifies Telkom’s powerful financial position and long-term growth prospects.
