Telkom revenue hits R10.8bn in Q1 on fibre and mobile growth

Image: Reuters/Siphiwe Sibeko

The company says its mobile customer base reached 18.1 million, up 6.5% from a year ago, while mobile data subscribers rose by more than a quarter to 17.2 million. Mobile service revenue climbed 7.8%, supported by an 11% increase in mobile data traffic.

Openserve, Telkom’s wholesale network business, also posted gains. Fibre data revenue increased by over 11%, while the number of homes connected to fibre grew by 17%, lifting the fibre-to-the-home connectivity rate to 51%.

Group EBITDA rose by 6.5% to R2.8bn, with the EBITDA margin improving to 25.9%. Telkom attributes the margin improvement to operational efficiencies and a more favourable revenue mix.

Group CEO Serame Taukobong said the results reflect the ongoing success of Telkom’s data-led strategy. “We remain focused on delivering results as we build the backbone of South Africa’s digital future,” he said.

Telkom’s IT services subsidiary, BCX, continued to weigh on group performance. Revenue at the unit declined by more than 8%, with EBITDA falling 25% and margin pressure persisting. A turnaround team has been appointed to address the underperformance.

Looking ahead, the group says it will remain focused on expanding its connectivity footprint while preserving cash and improving margins across all business segments.