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South African telecommunications provider Telkom has reported strong third-quarter 2025 results, underscoring a decisive strategic pivot toward data-driven services. Data revenue now accounts for 60% of total earnings—highlighting the accelerating shift from legacy voice services to digital connectivity across the market.
For the third quarter, the company recorded revenue of $701 million, representing a 1.3% year-on-year increase. Over the first nine months of the financial year, revenue reached $2.09 billion, up 2.7% compared to the previous year. Mobile subscribers have now surpassed 25 million, with a significant proportion actively consuming data services such as streaming, mobile applications, and social platforms.
Data revenue rose 9.6% during the quarter, while mobile data revenue expanded by 12.9%, reflecting sustained demand for high-speed connectivity. Fibre revenue also increased by 8.9%, driven by growing household broadband adoption.
Chief Executive Officer Serame Taukobong reiterated that the company’s strategy is firmly centred on scaling data infrastructure and phasing out lower-margin legacy offerings. This repositioning aligns with broader industry trends favouring digital-first business models supported by network modernisation and infrastructure optimisation.
The mobile segment continues to anchor performance. Mobile service revenue climbed 7.2% in Q3, while prepaid revenue rose 11.6% year-on-year. Active mobile data users grew to 19.3 million—an increase of 29.3%—demonstrating strong customer migration toward internet-based usage over traditional voice services.
Through its Openserve division, Telkom has extended fibre connectivity to more than 1.5 million homes, with approximately 787,000 homes actively connected. The company continues to add around 30,000 new fibre connections each quarter, reinforcing its footprint in fixed broadband infrastructure.
Profitability metrics also improved. EBITDA increased 8.4% to $204 million, with margins rising to 29.1%, reflecting operational efficiencies despite continued capital expenditure. During the quarter, the company invested $82 million in network expansion, including mobile towers, fibre rollout, and upgraded infrastructure. Total capital expenditure over nine months reached $263 million, largely directed toward mobile and fibre growth initiatives.
Operationally, Telkom enhanced cost efficiency by reducing bad debt exposure, streamlining legacy systems, and migrating customers to more cost-effective digital platforms. This approach not only strengthens margins but also supports long-term scalability and service resilience.
With data now driving 60% of total revenue, Telkom’s performance signals the continued digital transformation of South Africa’s telecom landscape. Rising prepaid data spending, rapid growth in active data users, and sustained fibre expansion collectively position the operator to capitalise on increasing demand for reliable, high-speed connectivity.
As digital consumption deepens across South Africa—from streaming and remote work to fintech and cloud-based services—Telkom’s strategic emphasis on mobile data and fibre infrastructure reflects a forward-looking growth model aligned with evolving consumer behaviour and market dynamics.
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