Telkom lifts quarterly earnings as mobile and fibre drive growth

A general view of a Telkom store in Cape Town on 16 January 2020. Picture: Gallo Images/Misha Jordaan South African telecommunications operator Telkom SA reported a 10.0% increase in group Ebitda (earnings before interest, tax, depreciation and amortisation) to R3.079 billion for the first quarter ended 30 June 2026 (Q1 FY2027), driven by sustained demand for mobile and fibre data services and tighter expense management. In atrading update released on 3 August, the group confirmed that total group revenue rose 2.6% year-on-year to R11.096 billion.

Group data revenue climbed 8.8% to R6.922 billion, expanding its contribution to total group top-line revenue to 62.4%, up from 58.8% in the comparative prior period. The surge in data-led revenue, gaining R561 million across mobile and fibre-related streams, offset a R124 million contraction in traditional fixed-line revenue. Overall operating expenses declined 1.9% for the quarter, supported by reduced mobile roaming fees, lower maintenance expenses, and a drop in the impairment of receivables.

Reflecting on the quarterly performance, Telkom Group CEO Serame Taukobong stated: “We commenced the new financial year with strong data-led growth supported by Mobile and Openserve. Mobile and Openserve delivered solid revenue and Ebitda growth, as mobile service revenue re-accelerated compared to the preceding quarter (Q4 FY2026).” “We continued with our OneTelkom approach. Furthermore, our cost discipline initiatives contributed to a solid group Ebitda growth and the Ebitda margin expanded.

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BCX continued to experience revenue pressure, mainly as a result of revenue decrease in Converged Communications as well as IT hardware and software sale. As expected, subdued performance in BCX remains, while the new management continues the reshaping of the business.” The Telkom Consumer division registered a 5.3% revenue increase to R7.323 billion, underpinned by mobile service revenue growth of 6.4% to R5.731 billion. Mobile Ebitda grew 17.6% to R1.920 billion, lifting the margin by 2.7 percentage points to 29.1%.

Telkom’s wholesale infrastructure division, Openserve, recorded a 5.6% increase in overall revenue to R3.320 billion, with external revenue surging 18.2% to R1.475 billion. Fibre-related data revenue accounted for 89.2% of Openserve’s total operating revenue. Openserve expanded its operational footprint to 1 565 750 homes passed (up 10.7%) and 843 563 homes connected (up 16.6%), raising its industry-leading fibre connectivity rate to 53.9%. Openserve Ebitda grew 6.7% to R1.101 billion, yielding an expanded Ebitda margin of 33.2%.

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