KEY POINTS
- Telkom Q3 rose 8.4 percent to R3.24 billion, with margins expanding to 29.1 percent.
- Mobile data and fibre growth drove revenue, with subscribers surpassing 25 million.
- BCX profit dropped 37 percent as enterprise IT spending remained constrained.
Telkom Group CEO Serame Taukobong said the company delivered higher earnings and revenue in the third quarter ended December 31, 2025, as demand for mobile data and fibre services strengthened performance across key units.
Group earnings before interest, taxes, depreciation and amortisation rose 8.4 percent to R3.24 billion. The Ebitda margin expanded by 1.9 percentage points to 29.1 percent, reflecting improved cost management and continued growth in data services.
Revenue increased 1.3 percent to R11.13 billion during the quarter, while group data revenue climbed 9.6 percent to R6.86 billion.
“The disciplined execution of our data led strategy delivered quality data revenue growth in the third quarter and year to date,” Taukobong said in a trading update. He added that cost optimisation efforts contributed to margin expansion.
Mobile business drives subscriber growth
Telkom Consumer revenue rose 4.5 percent to R7.48 billion, supported largely by gains in the mobile segment.
Mobile service revenue increased 7.2 percent to R5.82 billion, while mobile data revenue jumped 12.9 percent to R4.62 billion. The growth was driven by higher subscriber numbers and rising data traffic.
Mobile subscribers exceeded 25 million during the quarter. Mobile data subscribers grew 29.3 percent to 19.3 million, accounting for 76.5 percent of the total subscriber base.
The mobile division recorded a 13.6 percent increase in Ebitda to R1.99 billion.
Fibre expansion strengthens Openserve performance
Openserve, the group wholesale and fibre network arm, reported a 2.1 percent rise in Ebitda to R1.09 billion. Revenue grew 2.2 percent to R3.17 billion, supported by continued fibre monetisation.
Fibre related data revenue for the group increased 8.7 percent to R2.56 billion.
Openserve passed more than 1.5 million homes with fibre infrastructure. The connectivity rate remained at 52.4 percent, with 786,490 homes connected. During the quarter alone, 47,596 homes were passed and 30,081 connected.
Telkom invested R1.3 billion in capital expenditure, representing a capex intensity of 11.7 percent. Of that, R676 million was allocated to mobile network expansion and upgrades, adding 150 base station sites. Openserve invested R557 million to modernise and expand its fibre network.
BCX revenue declines amid cautious enterprise spending
BCX, the group information technology and communications unit, recorded weaker results.
Ebitda declined 37.1 percent to R275 million, while revenue fell 9.3 percent to R2.64 billion. Converged Communications revenue dropped 17.8 percent to R1.14 billion, and IT services revenue decreased 10.5 percent to R1.12 billion amid constrained enterprise budgets and delayed project rollouts.
Hardware and software revenue increased 19.6 percent, largely due to the timing of deal closures. Cybersecurity services grew 18.4 percent, reflecting sustained demand for resilience and risk management solutions. Cloud revenue remained under pressure due to global competition and tighter corporate spending.
According to Engineering News, Taukobong said revenue growth remains a priority, anchored by the data led strategy. He noted that group Ebitda margin exceeded the upper end of its 25 percent to 27 percent guidance range.
BCX continues to undergo operational adjustments ahead of a leadership transition. Hasnain Motlekar will assume the role of acting BCX CEO from March 1 following the retirement of Jonas Bogoshi.
Telkom said it remains focused on sustaining investment in mobile and fibre infrastructure while executing its medium term objectives in a competitive telecommunications market.
