Telkom (TKG) H2 2026 earnings summary

Executive summary

• Data-led strategy drove improved profitability, strong free cash flow, and a robust balance sheet, with enhanced dividend policy and execution against medium-term targets.

• Revenue grew 1.4% year-over-year to R44.5bn, driven by data and mobile service revenue expansion.

• Headline EPS rose 21.5% to 708.5c, and free cash flow improved by 10.4% to R3.1bn.

• Ordinary dividend per share increased 65.7% to 270c, supported by a revised dividend policy.

• Focus remains on quality growth, disciplined capital allocation, and long-term value creation.

Financial highlights

• EBITDA increased 5.8% to R12.5bn, with margin at 28.1% and cost-to-income ratio improved to 73%.

• Data revenue grew 7.6% to R26.6bn, with mobile data revenue up 10.5% and fibre-related data revenue up 6.2%.

• Free cash flow rose to R3.1bn, up 10.4% from prior year.

• CapEx up 10.4% to R6.4bn, with capital intensity at 14.5% of revenue.

• Net debt reduced by 14.7% to R6.4bn after Swiftnet exit; net debt/EBITDA improved to 0.5x.

Outlook and guidance

• Medium-term guidance targets mid-single digit revenue growth, EBITDA margin of 25–27%, capex intensity of 12–15%, and net debt/EBITDA between 0.5x and 1.5x.

• Priorities: sustain mobile growth, commercialize fiber, stabilize BCX, drive cost and cash discipline, and smart CapEx deployment.

• Capital allocation prioritizes data-led growth, disciplined capex, and progressive dividend framework.

• Revenue growth trending behind guidance but focus remains on data-led streams and margin improvement.