JSE-listed telecommunications group Telkom on Monday reported strong data revenue performance, double-digit earnings before interest, taxes, depreciation and amortisation (Ebitda) growth and a double-digit climb in subscriber growth.

During the three months ended December 31, 2024, Telkom Group’s Ebitda increased 28% to R2.99-billion, with Ebitda margins expanding by 5.8 percentage points to 27.2%. Adjusted year-to-date Ebitda was R8.59-billion with a 26.5% margin.

“These results provide further proof that the execution of Telkom’s strategy is on track, delivering profitable growth. We are excited by the growing momentum across our business units, and we remain confident in our ability to meet our medium-term growth objectives as we continue to invest in our infrastructure, network and digital services,” said Telkom Group CEO Serame Taukobong in an update to shareholders.

“Strong operational performance, combined with R417-million in property disposal proceeds during the quarter, maintained the resilience of Telkom's balance sheet, with interest-bearing debt reduced by 2.7% since September 2024.”

The financial and operational results for the third quarter showed that group revenue increased 0.9% year-on-year to R10.99-billion, driven by strong demand for data-led services.

During the quarter under review, mobile service revenue increased 9.6% to R5.4-billion, while fixed data and IT service revenues increased by 4.7% and 3.2%, respectively.

Year-to-date revenue increased 1.6% to R32.38-billion.

The company’s subscriber base reached a record 24-million, a 21.6% increase, with Telkom’s pre-paid segment growing 25% to 21-million subscribers, while the post-paid base remained stable with improved average revenue per user performance.

Mobile data subscribers increased 17.3% to account for 62.3% of the total mobile base.

Mobile and fixed-data traffic increased by 22.2% and 23.7%, respectively.

Telkom Consumer’s Ebitda increased 51.4% to R1.49-billion, with a 6.5 percentage point increase in Ebitda margin.

Openserve produced revenue of R3.11-billion, with fibre connectivity increasing as homes passed grew by 13.1% to 1.3-million, connected homes expanded 17.6% and data consumption increased by 23.7%.

“Efficiency initiatives, including network modernisation and renewable-energy programmes, contributed to a 5.4% increase in Ebitda to R1.07-billion and an improved margin of 34.4%,” said Taukobong.

Meanwhile, BCX achieved a higher margin for IT services, with revenue growing by 6.8% to R1.21-billion.

The unit’s Ebitda increased 36% to R438-million, with margins improving by five percentage points to 15%, reflecting the successful transition to scalable, higher-margin service offerings.

“While showing steady performance, BCX revenue declined by 9.7% to R2.91-billion owing to a strategic shift away from lower-margin hardware/software revenue.”

Taukobong added that the company’s Swiftnet disposal remains on track, with regulatory approvals in place and the transaction expected to close by the end of the 2025 financial year.

“The strategic disposal of Swiftnet, combined with ongoing cost optimisation and smart capital expenditure, further solidifies Telkom’s robust financial position and long-term growth prospects,” he concluded.

“Telkom is well positioned to continue its transformation into a leading digital enabler. With a strong operational foundation, ongoing network investments and a clear focus on data connectivity, the group expects continued momentum in the remaining quarter of the 2025 financial year and beyond.”