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.