Telkom SA has reported improvements in revenue and subscribers for the first quarter ended 30 June 2026.
Group data revenue increased by 8,8% to R6 922 million, contributing 62,4% to total revenue, driven by an 11,4% rise in mobile data revenue, and a 4% growth in fibre-related data revenue.
Pre-paid service revenue growth of 9,1% was the driver of mobile service revenue increase of 6,4%.
Meanwhile, Openserve maintained an overall positive revenue trajectory, which increased by 5,6%.
BCX IT services revenue was stable at 0,3% in a constrained IT sector, with cybersecurity growing 36,6% and cloud services 11,8%.
Group EBITDA margin expanded to 27,7%, benefitting from double-digit growth in EBITDA.
The group’s total Mobile subscriber base increased by 6,1% to 25,3-million, underpinned by pre-paid subscriber growth, while data subscribers grew 15,5% to 19,8-million.
Telkom’s fibre connectivity rate improved to 53,9%, on the back of homes connected increasing by 16,6% to 843 563.
Group CEO Serame Taukobong comments: “We commenced the new financial year with strong data-led growth supported by Mobile and Openserve. Mobile and Openserve delivered solid revenue and EBITDA growth, as mobile service revenue re-accelerated compared to the preceding quarter (Q4 FY2026).
“We continued with our OneTelkom approach.
“Furthermore, our cost discipline initiatives contributed to
a solid Group EBITDA growth and the EBITDA margin expanded. BCX continued to experience revenue pressure, mainly as a result of revenue decrease in Converged Communications as well as IT hardware and software sale. As expected, subdued performance in BCX remains, while the new management continues the reshaping of the business.”
He adds that, in July 2026, Openserve launched its own Internet Service Provider (ISP) to monetise its existing infrastructure and improve the connectivity rate.
Looking ahead, Taukobong says, Telkom will continue to pursue growth and improved efficiencies. “Our data-led strategy will continue to drive expansion, while cost optimisation initiatives remain a key focus.
“Our OneTelkom approach is delivering on its promise, reinforcing our leadership in digital infrastructure and strengthening our role as the backbone of South Africa’s digital future.
“We expect capex intensity to be within the 12% to 15% of our guidance. We remain focused on delivering on our medium-term guidance objectives.”