Telkom (TKG) Q3 2026 TU earnings summary

Executive summary

• Achieved top employer certification for the fourth consecutive year, reflecting strong organizational culture and talent management.

• Disciplined, data-led strategy drove robust data revenue growth, with group data revenue up 9.6% for the quarter and 8.5% year-to-date, now contributing 60% of total revenue.

• Mobile subscribers surpassed 25 million, with mobile data subscribers up 29.3% to 19.3 million, representing 76.5% of the base; fibre connectivity rate at 52.4%.

• Continued regional expansion and customer value management initiatives, such as Mo'Nice and Mo'Town, drove prepaid service revenue growth.

• Capex investment focused on mobile and fibre, totaling R4.17 billion year-to-date at a 12.6% intensity ratio.

Financial highlights

• Group revenue grew 2.7% year-to-date to ZAR 33.24 billion, with quarterly revenue up 1.3% to R11.13 billion.

• Group EBITDA increased 7.8% year-to-date to ZAR 9.26 billion, with quarterly EBITDA up 8.4% to R3.24 billion and margin expanding to 29.1%.

• Mobile service revenue grew 7.6% year-to-date and 7.2% for the quarter; mobile data revenue up 12.9% for the quarter and 11.2% year-to-date.

• Openserve revenue improved to ZAR 9.5 billion year-to-date, up 2.2% for the quarter; fibre-related data revenue up 9.6% year-to-date and 8.7% for the quarter.

• BCX revenue declined 9.3% for the quarter and 5.9% year-to-date, with EBITDA margin at 10.4%.

Outlook and guidance

• Committed to delivering medium-term guidance objectives, with a focus on sustaining data-led revenue growth and cost optimisation.

• Mobile business to continue driving service revenue, especially in prepaid and non-metro regions.

• Openserve to focus on broadband, enterprise, and carrier revenue growth, maintaining industry-leading connectivity rates.

• BCX to pursue operational stabilization and margin discipline amid cautious enterprise spending and leadership transition.

• EBITDA margin guidance remains unchanged, with current performance above medium-term targets but too early for revision; capex intensity within 12%-15% guidance.