South African telecommunications group Telkom reported a 30.1% increase in full-year headline earnings on Tuesday, June 2, driven by strong demand for mobile and fibre data services. The Johannesburg-based company also increased its dividend payout after reporting higher earnings for the financial year ended March 31, according to Reuters.
Reuters reported that Telkom’s headline earnings per share, a key measure of profitability in South Africa, rose to 708.5 cents from 544.5 cents a year earlier. The company said growth was supported by cost-cutting initiatives and continued expansion in mobile services.
Telkom reported that mobile-service revenue increased 6.8% during the financial year, according to Reuters. The company attributed the performance to sustained customer demand for data products and connectivity services.
The telecommunications operator declared a dividend of 270 cents per share. According to Reuters, the dividend announcement followed a year of stronger earnings and improved operational performance.
Telkom, which is majority owned by the South African government, has focused on expanding its mobile and fibre businesses while reducing costs across its operations. Reuters reported that demand for data services continued to support revenue growth across key business segments.
In a statement cited by Reuters, Telkom said full-year headline earnings increased as data demand fueled growth in both mobile and fibre revenue streams. The company linked its earnings performance to continued customer adoption of digital services.
Chief Executive Officer Serame Taukobong said the company’s strategy remained focused on data-driven growth and operational efficiency. In remarks contained in Telkom’s results documents, he said, “Our data-led strategy continues to support quality earnings and sustainable growth.”
Telkom also pointed to ongoing cost optimisation efforts as a factor behind the earnings increase. According to Reuters, management said operational efficiencies helped offset competitive pressures in South Africa’s telecommunications market.
The company’s financial disclosures showed headline earnings growth outpaced mobile-service revenue growth, reflecting the impact of lower costs and improved margins. Reuters reported that the combination of revenue gains and cost controls contributed to the stronger result.
The dividend declaration represents a modest increase from the previous financial year. According to company results cited by Reuters, the board approved a dividend of 270 cents per share following earnings growth and cash generation improvements.
Regional/Global Impact
Telkom’s results provide an indication of demand trends in South Africa’s telecommunications sector, one of the largest digital communications markets in Africa. According to Reuters, growth in mobile and fibre services continues to support revenue across major operators as businesses and consumers increase data usage.
The results also reflect broader investment in digital infrastructure across South Africa. Telecommunications companies have expanded fibre networks and mobile data services to meet rising connectivity demand, according to Reuters.
As a government-linked company, Telkom’s performance is closely watched by investors and policymakers assessing the health of South Africa’s communications sector. Reuters reported that the company’s earnings growth was supported by both revenue expansion and operational improvements.
Background
Telkom operates fixed-line, mobile, fibre and information technology services across South Africa. The company is majority owned by the South African government, according to Reuters.
In June 2025, Reuters reported that Telkom resumed dividend payments after a multi-year suspension that had been introduced to preserve cash and strengthen its balance sheet. The company has since continued to focus on debt reduction and profitability improvements.
Mobile data services and fibre connectivity have become key growth areas for Telkom as traditional fixed-line revenues decline. Reuters reported that strong demand for data products has helped support earnings growth in recent years.
What Happens Next
Telkom is expected to continue investing in mobile and fibre infrastructure while pursuing cost-efficiency measures, according to company statements cited by Reuters. Management has indicated that data services will remain central to its growth strategy.
Investors will monitor future revenue growth in mobile and fibre segments as well as the company’s ability to maintain profitability gains. Reuters reported that Telkom’s latest results were supported by both revenue expansion and cost reductions.
The company is also expected to continue implementing its dividend policy following the latest payout announcement. Future distributions will depend on earnings performance, cash generation and investment requirements, according to company disclosures.
