Telkom (TKG) Q3 2025 TU earnings summary

Executive summary

• Achieved strong Q3 FY2025 results with group revenue up 0.9% year-over-year to ZAR 11 billion, driven by mobile and data-led growth, and reaffirmed medium-term objectives.

• Group EBITDA surged 28% year-over-year to ZAR 3 billion, with margin expanding to 27.2% due to operational efficiencies and property sales.

• Data-led strategy and infrastructure investments are driving profitable growth and operational efficiencies.

• Swiftnet disposal is progressing as planned, with regulatory and shareholder approvals obtained, and expected to close by year-end or soon after.

• Mobile subscribers grew 21.6% to 24 million, with mobile data subscribers up 17.3% and homes connected with fibre up 17.6%.

Financial highlights

• Year-to-date group revenue rose 1.6% to ZAR 32.4 billion; adjusted EBITDA for the period reached ZAR 8.6 billion with a 26.5% margin.

• Mobile service revenue increased 9.6% year-over-year; mobile revenue up 6.5% to ZAR 6.3 billion in Q3.

• Cash proceeds from property disposals totaled ZAR 621 million for the first nine months.

• Interest-bearing debt reduced by 2.7% to ZAR 12.6 billion since September 2024.

• Telkom consumer EBITDA increased by 51.4% in Q3, with a 6.5 percentage point margin uplift to 20.8%.

Outlook and guidance

• CapEx intensity expected to be at the midpoint of 12%-15% guidance for the year.

• Confident in achieving medium-term objectives and maintaining profitable growth, with group revenue and EBITDA guided to low- to mid-single digit CAGR.

• Swiftnet transaction expected to close by year-end or soon after, with cash proceeds of ZAR 6.75 billion subject to minor adjustments.

• Cost-conscious culture and focus on core data connectivity expected to drive future growth.