Telkom (TKG) H1 2026 (Q&A) earnings summary

Executive summary

• Group revenue grew 3.4% year-over-year to R22.1bn, driven by a data-led strategy and strong mobile and fibre performance, with data revenue now 59.1% of total revenue.

• Group EBITDA increased 7.4% to R6.0bn, with margin expanding to 27.2% due to revenue growth, cost efficiencies, and disciplined management.

• Headline earnings per share (HEPS) rose 16.4% to 305.6c, reflecting strong profit momentum and lower finance charges.

• Free cash flow remained robust at R724m, supporting ongoing investment in growth and network expansion.

• Net debt to EBITDA held at 0.7x after significant debt repayment and special dividend distribution.

Financial highlights

• Mobile service revenue up 7.9% to R11,027m, with mobile data revenue up 10.3% to R8.7bn, now 59.1% of group revenue.

• Fibre-related data revenue increased 12.3% to R4.1bn, with external fibre revenue up 9.1% and homes connected up 18.1% to 756,409.

• EBITDA margin improved by 1.1 ppts to 27.2%, driven by cost management and operational efficiencies.

• Capex increased 12.9% to R2.87bn, with a capex-to-revenue ratio of 13.0%.

• Net debt to EBITDA: 0.7x; interest cover: 12.1x.

Outlook and guidance

• Medium-term guidance (FY26–FY28) unchanged: mid-single digit revenue growth, EBITDA margin 25–27%, capex intensity 12–15%, net debt to EBITDA 0.5x–1.5%.

• Focus on expanding mobile and fibre networks, operational efficiencies, and disciplined cash management.

• Service revenue growth in Mobile expected to remain mid-single digit, with EBITDA margin moderating due to seasonal investment.

• Openserve to focus on FTTH and enterprise growth, with continued cost optimisation.

• BCX to pursue margin-accretive revenue and disciplined execution of strategic actions.