The payout is from the cash proceeds from the disposal of masts and towers business Swiftnet
10 June 2025 - 08:28
by Jacqueline Mackenzie
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
A Telkom shop at Eastgate Mall in eastern Johannesburg. Picture: FREDDY MAVUNDA.
Telkom has reinstated its ordinary dividend after a four-year suspension and has also declared a special dividend from the cash proceeds from the disposal of Swiftnet, its masts and towers business.
The group concluded the disposal of Swiftnet during the year and received proceeds of R6.618bn.
Telkom reported that adjusted earnings before tax, depreciation and amortisation (ebitda) rose by 25.1% to R11.79bn in the year to end-March.
The group adjusted ebitda margin expanded by 4.7 percentage points to 26.9% due to cost-optimisation initiatives, it said on Tuesday.
Headline earnings per share (HEPS) rose 44.8% to 544.5c. HEPS from continuing operations were up 62.3% to 467.5c.
A final dividend of 163.05c per share was declared along with a special dividend of 97.82c, taking the total dividend to 260.87c per share.
Group revenue was up 3.3% to R43.88bn due to strong growth in mobile service revenue, which rose 10.2%, and fibre-related data revenue, which was 10% higher. Profit for the year surged to R7.5bn from R1.88bn a year ago.
“Telkom’s strategic vision is translating into exceptional results, demonstrating our unwavering commitment to strengthening our position as the digital backbone of SA. Our data-centric strategy continues to be the key driver, enabling us to deliver a sustained, impressive performance,” said CEO Serame Taukobong.
“While group data revenue performance remained strong, the group’s ebitda and cash flow growth were fuelled by a combination of successful strategies,” he said.
“Mobile and fibre service revenue growth across the group, along with effective cost efficiency programmes, improved group adjusted ebitda by 25.1% and drove a 19.3% year-on-year increase in cash flow from underlying operations.”
Maintaining a strong balance sheet remains a priority and the group aims to sustain the positive free cash flow momentum established to date.
“Leveraging our current momentum, we are setting ambitious yet achievable objectives for the next three years,” the group said.
The group plans to drive top-line revenue growth across all businesses to exceed inflation and projects annual revenue growth in the mid-single digits.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Telkom declares special dividend
The payout is from the cash proceeds from the disposal of masts and towers business Swiftnet
Telkom has reinstated its ordinary dividend after a four-year suspension and has also declared a special dividend from the cash proceeds from the disposal of Swiftnet, its masts and towers business.
The group concluded the disposal of Swiftnet during the year and received proceeds of R6.618bn.
Telkom reported that adjusted earnings before tax, depreciation and amortisation (ebitda) rose by 25.1% to R11.79bn in the year to end-March.
The group adjusted ebitda margin expanded by 4.7 percentage points to 26.9% due to cost-optimisation initiatives, it said on Tuesday.
Headline earnings per share
(HEPS) rose 44.8% to 544.5c. HEPS from continuing operations were up 62.3% to 467.5c.
A final dividend of 163.05c per share was declared along with a special dividend of 97.82c, taking the total dividend to 260.87c per share.
Group revenue was up 3.3% to R43.88bn due to strong growth in mobile service revenue, which rose 10.2%, and fibre-related data revenue, which was 10% higher. Profit for the year surged to R7.5bn from R1.88bn a year ago.
“Telkom’s strategic vision is translating into exceptional results, demonstrating our unwavering commitment to strengthening our position as the digital backbone of SA. Our data-centric strategy continues to be the key driver, enabling us to deliver a sustained, impressive performance,” said CEO Serame Taukobong.
“While group data revenue performance remained strong, the group’s ebitda and cash flow growth were fuelled by a combination of successful strategies,” he said.
“Mobile and fibre service revenue growth across the group, along with effective cost efficiency programmes, improved group adjusted ebitda by 25.1% and drove a 19.3% year-on-year increase in cash flow from underlying operations.”
Maintaining a strong balance sheet remains a priority and the group aims to sustain the positive free cash flow momentum established to date.
“Leveraging our current momentum, we are setting ambitious yet achievable objectives for the next three years,” the group said.
The group plans to drive top-line revenue growth across all businesses to exceed inflation and projects annual revenue growth in the mid-single digits.
mackenziej@arena.africa
Telkom shares surge as full-year earnings set to nearly double
Telkom earnings rise due to profit on sale of Swiftnet
Telkom on the hunt for mobile virtual network customers
Companies in this Story
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
2025 Telkom Radio Awards now open for entries
New draft rules for foreign telecom operators raise questions
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.