Telkom has commenced its 2025 financial year with a steady performance, recording a 1.1% year-on-year increase in group revenue to R10.8 billion (approximately $600 million) for the quarter ending 30 June 2025. The Johannesburg Stock Exchange-listed telecommunications firm attributes this growth primarily to a 7.8% rise in mobile service revenue from Telkom Consumer and an 11.3% surge in fibre data revenue generated by its wholesale network arm, Openserve.
According to the trading update released by the company, earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose by 6.5% to R2.8 billion (~$155.6 million). This improvement is largely credited to enhanced cost-efficiency measures and disciplined execution, which also resulted in a higher EBITDA margin.
Telkom’s strategy to centre its operations around data services appears to be yielding positive results. The number of mobile data subscribers grew by 27.5% to 17.2 million, and the number of homes connected to its fibre infrastructure increased by 17.5%. This expansion underscores Telkom’s continuing shift towards digital and broadband-based revenue streams, aligning with broader market demand for reliable internet connectivity.
Group CEO Serame Taukobong commented positively on the company’s momentum, stating that the data-led strategy represents a sustainable competitive edge in an increasingly saturated telecommunications market. He further noted the growing contribution of mobile data and fibre services to the group’s top line, affirming that this trajectory positions Telkom to maintain long-term relevance.
However, not all areas of the business mirrored this upward trend. The performance of BCX, Telkom’s business and IT services division, posed a challenge to overall results, with revenue declining by 8.3%. While the company did not disclose detailed reasons for the decline, it has acknowledged the impact and deployed a dedicated turnaround team to expedite recovery and operational improvements in this segment.
Despite this setback, the overarching tone of Telkom’s update remains cautiously optimistic. Management anticipates continued growth and enhanced profitability throughout the financial year, with emphasis placed on operational discipline and strategic investment in data infrastructure as cornerstones of future success.
Telkom’s Q1 performance comes in the context of intensified competition within the South African telecommunications landscape, where established players and new entrants are vying for both enterprise and retail customers. The company’s focus on fibre rollout and mobile data is clearly aligned with national and global shifts towards digitisation, remote working, and high-bandwidth connectivity.
The outlook for Telkom will depend on its ability to sustain growth across its consumer and wholesale divisions while addressing inefficiencies in business segments such as BCX. With regulatory, economic, and competitive factors influencing the industry, Telkom’s operational agility and execution will be critical in the quarters ahead.
