Telkom (TKG) H2 2026 (Q&A) earnings summary

Executive summary

• Achieved resilient revenue growth of 1.4% year-over-year to R44.5bn, driven by a data-led strategy and mobile service expansion, with improved revenue quality.

• EBITDA increased by 5.8% to R12.5bn, with margin expanding to 28.1% due to cost discipline and operational efficiencies.

• Free cash flow rose 10.4% to R3.1bn, supporting a 65.7% increase in ordinary dividend per share to 270 cents.

• Enhanced shareholder returns through a revised dividend policy, now paying out 40%-60% of free cash flow annually.

• Mobile business reached over 25 million subscribers, with strong prepaid growth and stable ARPU.

Financial highlights

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

• Headline EPS rose 21.5% to 708.5 cents; free cash flow grew 10.4% to R3.1bn.

• Dividend increased by 65.7% to 270 cents per share, with payout at 45% of free cash flow.

• Cost-to-income ratio improved to 73% from 75.1% year-over-year.

• Net debt reduced by 14.7% to R6.4bn, with net debt to EBITDA at 0.5x.

Outlook and guidance

• Maintaining medium-term guidance, targeting mid-single digit revenue growth, EBITDA margin of 25%-27%, capex intensity of 12%-15%, and net debt to EBITDA between 0.5x and 1.5x.

• Focus remains on execution, revenue growth, and optimizing the BCX portfolio mix.

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