Telkom has announced its first dividend payment in four years, marking a significant turnaround for the telecommunications giant. Shareholders will receive a total payout of R1.3 billion, comprising an ordinary dividend of 163 cents per share and a special dividend of 98 cents. The company’s share price jumped over 7% following the news, reflecting investor confidence in its recovery. This milestone comes after years of financial strain, with Telkom’s latest results showing strong growth in mobile and fibre services driving its improved performance.
Key financial metrics underscore Telkom’s resurgence. Adjusted headline earnings per share nearly doubled to 660.2 cents, while profit from continuing operations reached R3.35 billion. Revenue grew 3.3% to R43.9 billion, supported by a 10.2% surge in consumer service income and a 19.5% expansion of its data subscriber base. The company’s fibre divisions, Openserve and BCX, also delivered solid growth, with Openserve achieving a 50.4% fibre-to-the-home connectivity rate. Improved cash flow and reduced debt levels provided the financial flexibility to resume dividends.
Looking ahead, CEO Serame Taukobong emphasised disciplined spending, with capital expenditure targeted at 12-15% of revenue. While macroeconomic challenges like slow growth and high unemployment persist, easing inflation and interest rates offer relief. Telkom’s recent asset sales, including its Swiftnet towers for R4.35 billion, have further strengthened its balance sheet. With stable energy supply and economic conditions expected to improve, Telkom aims to sustain its momentum, leveraging its mobile and fibre networks to maintain growth and reward shareholders.