For four years, Telkom left shareholders on “please hold.” No dividends, no sweet payout signal, just static. But now, South Africa’s semi-state telecom giant has hit redial, and the line is finally clear. With a combined R1.3 billion dividend payout, Telkom has reconnected with investors, and the market is buzzing again.
Let’s unpack the numbers, the strategy, and why Telkom suddenly looks like more than the awkward cousin at the Vodacom–MTN braai.
From Static to Signal — Telkom’s Headline Numbers
Telkom’s results for the year ended 31 March 2025 landed with a bang:
Headline earnings per share up 62.3% (from 288.1 cents to 467.5 cents).
Revenue up 3.3% to R43.8 billion, beating analyst expectations.
Dividends reinstated: 163 cents final dividend + 98 cents special dividend.
That’s a whopping R1.3 billion returned to shareholders, Telkom’s first payout since 2021. For a company many had written off as a bloated, semi-state relic, this is a serious comeback.
Rebuilding the Core — How Telkom Fixed Itself
Telkom didn’t just stumble into this recovery. They pulled some classic corporate belt-tightening tricks:
Costs cut, procurement sharpened, operations restructured.
EBITDA surged 25% to R11.7 billion.
Margins improved to 26.9%.
On the revenue side, old-school voice calls faded like a Mixit status in 2025, but mobile data is booming. With 2.7 million new prepaid subscribers and over 10% growth in data revenue, Telkom tapped into the market’s real demand.
Add to that:
OpenServe fibre quietly expanding connectivity.
BCX IT arm shifting into cloud services, AI, and regional growth (Mozambique, Angola, even Brazil).
This isn’t just a telecom anymore, it’s starting to look like a digital utility.
Towers Out, Dividends In — The Swiftnet Sale
The real unlock? Telkom sold Swiftnet, its tower and masts business, for over R1.5 billion. That sale:
Paid down debt.
Boosted free cash flow from R424 million to R2.8 billion.
Made the dividend possible.
Instead of hoarding cash or funding vanity projects, Telkom shocked everyone by giving it back to shareholders. Now that’s shareholder value.
Market Reaction — Investors Dial In
Investors popped the bubbly. Telkom’s share price jumped 7–10% in a single day, its best run in months. Analysts praised:
Renewed dividend credibility.
Improved margins.
Focus on digital and infrastructure growth.
As one analyst said: “Telkom finally looks like a telco with a plan.”
Strategic Outlook — Is This Sustainable?
Before anyone screams “BUY!”, a few caveats:
Competition is brutal — MTN and Vodacom aren’t sleeping.
BCX and OpenServe must scale fast as copper lines decline.
Dividend sustainability is key — can they keep paying annually without over-leveraging?
Telkom is targeting steady mid-single-digit revenue growth. Nothing flashy, but realistic. The future depends on execution and consistency.
What Retail Investors Should Think
So, should South African retail investors care? Absolutely. Here’s why:
Dividend reinstated — a sign of financial stability.
Strong cash flow — funding both growth and payouts.
Exposure to essential services — data, fibre, cloud, IT.
Valuation — still cheaper than MTN and Vodacom, with recovery upside.
Is Telkom a high-flying growth rocket? No.
Is it shaping up to be a steady dividend payer with digital utility ambitions? It’s starting to look that way.
Stokvel Starter Pack for JSE Jedi — Telkom Edition
Earnings per share up 62%.
R1.3 billion returned to shareholders.
Free cash flow up nearly 7x.
Strategic shift into digital and infrastructure growth.
Risks: competition, execution, and dividend sustainability.
If you held Telkom in silent protest the past few years, you can finally unmute. If you didn’t, maybe it’s time to plug in.
Final Thoughts
Telkom may have been the forgotten cousin at the telecom braai, but it just rocked up with chops and conversation. Whether it stays at the table depends on execution, but for now, shareholders are smiling.
Disclaimer:
And as always: while my jokes may be more telekomedy than telecoms, this is not financial advice. Do your own research, speak to a licensed advisor,