Wrap Text
Group Annual Results and ordinary dividend declaration for the year ended 31 March 2026
Telkom SA SOC Limited
Registration number 1991/005476/30
JSE share code: TKG
JSE bond code: BITEL
ISIN: ZAE000044897
("Telkom" or the "Company" or the "Group")
Group Annual Results and ordinary dividend declaration for the year ended 31 March
2026
Telkom delivers another year of strong earnings, with dividend payout ratio and declaration
increase supported by healthy free cash flow
Group highlights
- Data-led strategy gains further traction:
- Group revenue up 1.4% to R44 477 million, driven by growth in Consumer and Openserve,
partly offset by revenue decline at BCX.
- Group data revenue up 7.6% to R26 598 million, contributing 59.8% to total revenue (FY2025:
56.4%).
- Mobile data revenue grew by 10.5% and fibre-related data revenue by 6.3%.
- Cost and cash management discipline yield continued progress:
- Group EBITDA(1,2) up 5.8%(3) to R12 480 million, reflecting structural improvements in the cost
base, resulting in EBITDA margin(1) expanding to 28.1%.
- Further improvement in cost to income ratio(2) to 73.0% from 75.1%(3), benefitting from 1.1%
decline in total costs.
- Free cash flow(4) increased by 10.4% to R3 068 million, reflecting disciplined cash generation
management.
- Headline earnings per share (HEPS)(1) up 21.5%(3) to 708.5 cents.
- Basic earnings per share (BEPS) up 5.5%(3) to 719.5 cents.
- Shareholder returns enhanced, with the free cash flow dividend payout ratio range raised to 40%–60%,
supporting the declaration of an ordinary cash dividend of 270 cents per share, up 65.7%.
- Net debt to EBITDA(1,2) slightly reduced to 0.5x (FY2025: 0.6x).
1. Earnings before interest, tax, depreciation and amortisation. Earnings before investment income and finance costs (which includes gains and losses on foreign exchange
transactions), tax, depreciation, amortisation, write-offs, impairments and losses of property, plant and equipment and intangible assets, and is also presented inclusive of
interest revenue and interest on overdue accounts. Also presented on an unadjusted basis in the current year, as there are no pro forma items requiring normalisation, unlike
the prior year.
2. This is a non-IFRS financial measure.
3. This financial measure is presented to show the adjusted performance of the Group's operations for the prior year and is internally used by management to assess the
performance of the business. Adjusted FY2025 (prior year) financial measures exclude the impact of the R160 million restructuring cost, and the Telkom Retirement Fund
derecognition loss of R618 million in continuing operations.
4. Free cash flow is defined as cash generated from operations before dividend paid, less cash paid for capital expenditure and repayment of principal lease liabilities.
5. Swiftnet met the IFRS 5 requirements and was classified as held for sale as a discontinued operation and was therefore excluded from the results for continuing operations.
Telkom disposed of its 100% equity shareholding in Swiftnet effective 31 January 2025.
Summary financial results
Financial indicators Reported Reported Reported Adjusted(3) Adjusted(3)
Continuing operations FY2026 FY2025 % change FY2025 % change
Rm
Revenue 44 477 43 880 +1.4
EBITDA(1,2) 12 480 11 014 +13.3 11 792 +5.8
Profit for the year 3 548 2 783 +27.5 3 351 +5.9
Dividend (cps) 270 261 +3.5
Financial indicators
Total operations Reported Reported Reported Adjusted(3) Adjusted(3)
(Continuing and discontinued) FY2026 FY2025 % change FY2025 % change
Rm
Basic earnings per share (cents) 719.5 1 528 (52.9) 1 643.7 (56.3)
Continuing 719.5 566.0 +27.1 681.7 +5.5
Discontinued(5) — 962.0 (100.0) 962.0 (100.0)
Headline earnings per share (cents)(2) 708.5 544.5 +30.1 660.2 +7.3
Continuing 708.5 467.5 +51.6 583.2 +21.5
Discontinued(5) — 77.0 (100.0) 77.0 (100.0)
Message from Serame Taukobong, Group CEO
These results validate our strategy for Telkom's transformation as we confidently position the Group for
consistent quality earnings that allow for enhanced shareholder returns. As a result, we have increased our
dividend payout ratio to a range of 40% to 60%, with the Board declaring an ordinary dividend at 45% of
free cash flow.
Further validation is provided by our Mobile business, which surpassed 25 million subscribers and
sustained market-leading service revenue growth for the 14th consecutive quarter, in its 15-year
anniversary. Openserve also achieved a remarkable milestone, recording full-year overall revenue growth
for the first time in nine financial years, an indication that the transition to fibre services is largely complete.
Telkom Consumer
- Market-leading mobile service revenue growth of 6.8%
- Pre-paid service revenue growth of 10.3%
- 31.1% increase in mobile data subscribers to almost 20.0 million
- Mobile EBITDA margin expanded to 29.0%
Openserve
- Overall revenue grew by 2.3%
- Fibre-related data revenue grew by 8.2%
- Industry-leading fibre to the home connectivity rate of 53.1%
- EBITDA margin improved to 33.5%
BCX
- IT business revenue stable at R6 722 million
- Cybersecurity revenue increased by 21.1%
- IT hardware and software revenue growth of 5.6%
- EBITDA margin resilient at 9.4%
Outlook
Our data-led strategy remains our key growth driver. Having established the OneTelkom approach and as the
backbone of South Africa's digital future, we are now focused on the next phase of value creation. This will be
through further increasing efficiencies and improving growth across the board. By allocating capex to projects that
enhance returns, we will continue the disciplined execution that is by now the hallmark of our transformation.
We will balance growth investment and cost discipline in the coming year. Capex intensity will remain within the
12%-15% range, primarily funding Mobile and fibre to support revenue growth, while cost efficiencies protect
margins. The combined effect will be geared towards free cash flow generation and a prudent leverage position.
Entering the second year of our medium-term guidance in FY2027, we remain confident that the guidance
provided on 10 June 2025 captures our commitment to disciplined execution in an evolving market.
Declaration of ordinary dividend
Aligned with our dividend policy, the Board declared a final ordinary dividend, number 29, of 270.10200 cents per
ordinary share (cps) (FY2025: 163.04723 cps) in respect of 31 March 2026. The dividend declared for the current
year is at 45% of the Group's free cash flow. No special dividend was declared in the current year. In the prior
year, a special dividend of 97.82051 cps was declared from the proceeds of Swiftnet disposal. The ordinary
dividend has been declared out of available cash balances. The total dividend for FY2026 is 270.10200 cps
(FY2025: 260.86774 cps).
The dividends will be subject to a local dividend withholding tax for those shareholders who are not exempt from
paying dividend withholding tax.
Dividend Gross amount Dividend withholding tax Net amount
Ordinary 270.10200 cps 20% 216.08160 cps
The number of ordinary shares in issue at the date of this declaration is 511 140 239. Telkom SA SOC Ltd's
tax reference number is 9/414/001/710.
Salient dates regarding the ordinary dividend are as follows:
Declaration date Tuesday, 2 June 2026
Last date to trade cum dividends Tuesday, 23 June 2026
Shares trade ex-dividend Wednesday, 24 June 2026
Record date Friday, 26 June 2026
Payment date Monday, 29 June 2026
Share certificates may not be dematerialised or rematerialised between Wednesday, 24 June 2026 and
Friday, 26 June 2026, both days inclusive. On Monday, 29 June 2026, dividends due to holders of
certificated securities on the South African register will be transferred electronically to shareholders' bank
accounts. Dividends in respect of dematerialised shareholders will be credited to shareholders' accounts
with their relevant central securities depository participant or broker.
Pro forma financial information
Certain financial information presented in this results announcement constitutes pro forma financial
information in terms of the JSE Listings Requirements. The Group presents various non -IFRS
financial measures in the results announcement, including (i) EBITDA, (ii) HEPS, (iii) net debt, (iv)
free cash flow (FCF), (v) return on invested capital (ROIC) and (vi) cost-to-income ratio for both the
current and prior year. In addition to these non-IFRS financial measures, the financial information in
the prior year excludes the impact of the loss from the settlement of the Telkom Retirement Fund and
restructuring costs with the related tax impact. These measures constitute pro forma financial
information and are annotated throughout the results announcement. The pro forma financial
information was presented to illustrate the impact of the pro forma adjustments on the audited
consolidated annual financial statements for the year ended 31 March 2025 to achieve a comparable
year-on-year analysis and show the adjusted performance of the business. The pro forma
adjustments were determined in terms of the Group accounting policies disclosed in the audited
consolidated annual financial statements for the year ended 31 March 2026. The pro forma financial
information is the responsibility of the Directors and because of its nature, may not fairly present the
financial position, changes in equity, results of operations or cash flows of Telkom.
Further information
The short-form announcement is the responsibility of the Board. It is only a summary of the
information contained in the annual financial statements for the year ended 31 March 2026 (AFS
2026) and does not contain full or complete details. Any investment decisions should be based on the
AFS 2026 published on the JSE's cloud link on Tuesday, 02 June 2026 and also available on
Telkom's website. The outlook statement has not been reviewed or reported on by Telkom's external
auditor.
The AFS 2026, which include the Group's external auditor, PricewaterhouseCoopers Inc. unmodified
opinion and their unmodified reasonable assurance report prepared in terms of ISAE 3420, are
available on the Company's website at:
https://group.telkom.co.za/ir/financial-information.html and on the JSE's cloud link at:
https://senspdf.jse.co.za/documents/2026/jse/isse/TKG/ie2026.pdf.
Copies of the AFS 2026 may be requested from our Group Company Secretary, Ephy Motlhamme at
motlhae1@telkom.co.za.
Mvuleni Geoffrey Qhena Serame Taukobong Nonkululeko Dlamini
Chairman Group Chief Executive Officer Group Chief Financial Officer
02 June 2026
Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Investor relations contact
Kamohelo Selepe
selepekv@telkom.co.za
Media contact
Batlile Phaladi
phaladrm@telkom.co.za
Date: 02-06-2026 07:15:00
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