Telkom delivered solid third-quarter results for the period ended 31 December 2025, with data revenue growth and cost discipline underpinning improved profitability, even as its BCX division remained under strain.
Group revenue rose 1.3% year-on-year to R11.1 billion for the quarter, while year-to-date revenue increased 2.7% to R33.2 billion. The standout performance came from data, which grew 9.6% in the quarter to R6.86 billion and now contributes more than 60% of total group revenue. Year-to-date data revenue is up 8.5% to R19.9 billion.
Adjusted group EBITDA increased 8.4% to R3.24 billion for the quarter, with the EBITDA margin expanding by 1.9 percentage points to 29.1%. On a year-to-date basis, EBITDA rose 7.8%, lifting the margin to 27.9%. Telkom attributed the margin improvement to continued cost optimisation and disciplined expense management across its business units.
Mobile remained the primary growth engine. Mobile service revenue grew 7.2% in the quarter and 7.6% year-to-date, supported by strong prepaid performance and sustained mobile data growth. Mobile data revenue increased 12.9% in the quarter and 11.2% year-to-date.
Total active mobile subscribers rose 5.3% to 25.3 million, with prepaid subscribers climbing 5.8% to 22.2 million. Blended average revenue per user (ARPU) was stable at R77.24, while prepaid ARPU held at R60.68. Post-paid ARPU improved to R187.41.
Mobile data subscribers expanded sharply by 29.3% to 19.3 million and now account for 76.5% of the total subscriber base. This translated into a 20.4% increase in mobile data traffic to 544 petabytes for the quarter. Telkom invested R676 million in mobile during the period, adding 150 new sites and upgrading base stations to support capacity expansion.
READ – Mobile and Fibre Growth Propel Telkom to Strong Half-Year Results
Openserve, Telkom’s infrastructure arm, delivered its third consecutive quarter of revenue growth. Overall revenue increased 2.2% to R3.17 billion, while fibre-related data revenue grew 8.7%. Fibre revenue now represents 87% of Openserve’s operating revenue.
Homes passed with fibre increased 12% to 1.5 million, while homes connected rose 17.8% to 786,490. The fibre connectivity rate strengthened to 52.4%, reinforcing Openserve’s position in the fixed broadband market. EBITDA rose 2.1% to R1.09 billion, with the margin holding firm at 34.4%.
Capital expenditure remained focused on growth areas. Group capex totalled R1.3 billion for the quarter and R4.17 billion year-to-date, representing an intensity ratio of 11.7% for the quarter and 13% year-to-date. Investment was concentrated in mobile and fibre expansion.
In contrast, BCX continued to face difficult trading conditions. Revenue declined 9.3% in the quarter and 5.9% year-to-date, reflecting subdued enterprise spending and pressure in its Converged Communications segment. EBITDA fell 37.1% to R275 million, with the margin contracting to 10.4%.
However, pockets of resilience emerged within BCX. Cybersecurity revenue grew 18.4%, and IT hardware and software revenue increased 19.6%, largely due to project timing and deal closures. Management said cost transformation measures and tighter receivables management helped cushion the earnings impact.
Telkom also continued its property disposal programme, transferring 21 properties year-to-date and generating R214 million in proceeds.
Looking ahead, the group said it remains committed to its medium-term targets. Management expects mobile to sustain service revenue growth, particularly in prepaid and non-metro regions, while Openserve will continue expanding fibre connectivity and optimising network costs. BCX is undergoing leadership transition, with Hasnain Motlekar appointed acting chief executive from 1 March 2026.
Telkom said its “OneTelkom” strategy will continue to position the group as South Africa’s digital backbone, with data-led growth and cost control central to its outlook.