Telkom (TKG) Q1 2026 TU earnings summary

Executive summary

• Group revenue increased 1.1% year-on-year to ZAR 10.8 billion, driven by strong data and fibre growth, though BCX underperformed with an 8.3% revenue decline.

• Group EBITDA rose 6.5% to ZAR 2.8 billion, with margin up 1.4 ppts to 25.9% due to cost optimisation.

• Data revenue grew 7.1% and now comprises nearly 60% of total revenue.

• Mobile business revenue increased 7.8%, with 1.9 million new data subscribers added and prepaid subscriber growth strong in non-metro regions.

• Mobile data subscribers surged 27.5% to 17.2 million, making up 72.1% of total mobile subscribers.

Financial highlights

• Group data revenue grew 7.1% year-on-year to ZAR 6.36 billion.

• Mobile service revenue up 7.8% to ZAR 5.39 billion; mobile data revenue up 9.6% to ZAR 4.19 billion.

• Openserve fibre data revenue increased 11.3% to ZAR 2.51 billion.

• Group EBITDA margin improved to 25.9% from 24.5% year-on-year; excluding property sales, margin was 24.7%.

• ZAR 158 million received from property sales; ZAR 121 million in sales pending.

Outlook and guidance

• Management expects financial performance to strengthen through the year, with CapEx intensity to reach 12%-15% of revenue by year-end.

• Medium-term guidance targets mid-single-digit group revenue growth, supported by continued data revenue expansion.

• Focus remains on regional expansion, network investment, and customer-centric offerings.

• Openserve to accelerate fibre adoption and network simplification.

• BCX to drive cloud/software portfolio growth and operational efficiencies.