Strong financial performance in Q1 2025
The latest figures from Telkom SA SOC Limited underline a steady upward trajectory in a market that is increasingly data‑centric. For the quarter ending 30 June 2025, the telecom operator posted a Telkom Q1 2025 results headline of R10.8 billion in group revenue, a modest 1.1% climb on the year‑on‑year basis. While the percentage may seem low, the real story lies in the composition of that revenue: data‑related services now account for roughly 60% of the total, reflecting the company's strategic pivot.
EBITDA rose by 6.5% to R2.8 billion, lifting the EBITDA margin to 25.9%—up 1.4 percentage points from the prior quarter. Even after stripping out non‑core property sales, the margin held firm at 24.7%, signalling that operating improvements are embedded rather than one‑off gains.
Within the group, the Telkom Consumer division emerged as a standout performer. Its EBITDA surged 18.5% to R1.42 billion, while the mobile arm contributed R1.63 billion, a 5.8% increase. These numbers echo the broader industry shift toward higher‑margin data services and away from traditional voice revenue.
Key drivers and future outlook
Three primary forces powered the quarter’s success. First, mobile data revenue surged 7.8% as Telkom Consumer added 27.5% more data subscribers, taking the total to 17.2 million. This subscriber boom stems from aggressive pricing, expanded 4G/5G coverage, and bundled offers that tie data plans to popular content platforms.
Second, the fibre business—operated through Openserve—delivered an 11.3% jump in data revenue. Fibre‑connected homes grew 17.5% to reach a 51.1% penetration rate in the markets where Openserve is present. The rollout of new fibre points of presence in previously underserved townships accelerated this growth, narrowing the digital divide and creating cross‑selling opportunities for other Telkom services.
Third, rigorous cost‑control measures trimmed operating expenses across the board. The company cited structural efficiencies, streamlined procurement, and automation of network management as key levers that bolstered the EBITDA margin.
Group data revenue now sits at R6.4 billion, a 7.1% rise, underscoring the successful execution of the data‑led strategy outlined in the medium‑term plan. By prioritising high‑growth, high‑margin segments such as mobile data, broadband, and enterprise cloud services, Telkom is positioning itself to capture a larger share of the increasingly digital South African economy.
CEO Serame Taukobong stressed that these results are not an isolated spike but part of a sustained momentum into FY2026. He highlighted that the expanding contribution of mobile data and fibre to total revenue aligns with the company’s medium‑term goals of achieving a data‑centric revenue mix and improving profitability.
Looking ahead, Telkom expects the data‑led trajectory to continue, driven by further fibre deployments, the rollout of 5G services, and the introduction of new digital products aimed at both consumers and enterprise customers. The firm plans to maintain its disciplined capital allocation, focusing on projects that deliver clear returns and enhance network resilience.
Analysts watching the South African telecom sector note that Telkom’s ability to grow subscriber numbers while keeping margins healthy sets it apart from some regional rivals who are still grappling with declining voice revenues. If the current trends persist, the company could see data revenue surpassing the 65% mark of total sales by the end of FY2026, further cementing its role as a leading digital infrastructure provider.
Elliott martin
September 26, 2025 AT 18:57Theyre not just selling data theyre selling access to a whole new way of living
People in townships are now streaming shows doing online classes paying bills online
Its not just business its transformation
Shelby Hale
September 26, 2025 AT 22:33How poetic
Meanwhile my phone bill doubled and my service still drops every time it rains
Jeffrey Frey
September 27, 2025 AT 16:45Also 60% data revenue? Thats not innovation thats desperation
Theyre just monetizing the fact that everyone now needs the internet to breathe
Jeremy Ramsey
September 27, 2025 AT 21:34Meanwhile in my neighborhood we had to wait 18 months for a technician to even show up
Its not progress if it only works for the ones who already had power and privilege
Also can we talk about how their CEO sounds like a TED Talk robot?
Henry Huynh
September 29, 2025 AT 02:32Don McBrien
September 29, 2025 AT 14:13Not just numbers on a spreadsheet but real people getting connected
Imagine a kid in Langa now doing homework online instead of walking miles to a library
Thats the real ROI here
Ed Thompson
October 1, 2025 AT 12:59Theyre basically running a digital infrastructure play with enterprise cloud and 5G as the next phase
And the cost controls? Pure ops efficiency
Automation is the silent hero here
Theyre not just keeping up theyre redefining the game
Sara Reese
October 3, 2025 AT 08:42But dont forget that this is still a company that tried to charge people for using their own landline during a national blackout
Progress is nice but trust is harder to build than fibre
Richie Cristim
October 3, 2025 AT 21:41And are those 17.2 million subscribers actually paying or are they on free trials
Also why no numbers on customer complaints
Just vibes and percentages
Lindy Loo
October 4, 2025 AT 06:43Not everyone gets to be part of this
And Telkom is doing it without leaving anyone completely behind
Its rare
And honestly it gives me hope for the future
Lisa J
October 5, 2025 AT 14:11Hope they keep the prices fair and dont start locking people out
Also can we get more women in tech roles there? Just saying
Bronwen Davies
October 6, 2025 AT 15:56Same energy
Same struggle
Same joy when the signal finally hits your street
But here the stakes are higher
Because in SA its not convenience its survival
Aquilino Mcquiston
October 8, 2025 AT 07:46Its the quiet revolution
Not with guns or protests but with routers and data bundles
Every fibre cable laid is a bridge built
Every subscriber added is a soul lifted out of isolation
Thats the real win
Cindy Crawford
October 8, 2025 AT 14:37And their fibre penetration is nowhere near Openserve's rivals in Cape Town
Also they still have the worst customer service ratings in the industry
So dont get too excited
Markos Charatzas
October 10, 2025 AT 06:46But its just the same old exploitation dressed in fibre optic
Theyre not empowering people
Theyre just making them dependent on a monopoly
Lena Michaels
October 10, 2025 AT 09:41But i also remember when they tried to charge R500 for a 10GB bundle
And now theyre calling this progress?
Kinda feels like theyre just making the same mistakes with new packaging
Also why no mention of cybersecurity?
People are going online for banking now
They need to fix that too