Telkom has announced impressive growth in its mobile segment for the 2025 financial year, with mobile service revenue rising 10.2% to R20.97 billion, up from R19.02 billion the previous year. The surge was driven by a 13.4% increase in subscribers, expanding Telkom’s customer base from 20.44 million to 23.28 million.
Prepaid and Data Growth Lead Performance
Prepaid subscriptions were a key driver, growing by 15.4%, while mobile data revenue climbed 12.3%. This was supported by a 19.5% rise in data subscribers and a 24.1% jump in data consumption, reaching 1,759 petabytes.
In an interview, Lunga Siyo, CEO of Telkom Consumer & Small Business, attributed the strong performance to the company’s data-driven strategy and affordable pricing.
“Our value propositions resonate with customers, and our AI-powered data analytics help us tailor offerings to their needs,” Siyo said. He also highlighted Telkom’s expansion into underserved regions and the introduction of a low-cost 4G device to attract feature phone users.
Increased Capex and Infrastructure Focus
Telkom increased its mobile capital expenditure by 12% to R2.88 billion, reinforcing its shift toward an infrastructure-focused business model. Siyo emphasized that investments are demand-driven, ensuring returns through monetization of data services.
Additionally, Telkom’s fiber business continues to grow, with a 50% connection rate in deployed areas. The company’s fintech offering, etu, which allows customers to buy airtime on credit, also contributed to growth.
Postpaid Segment Shows Stability
While postpaid subscribers grew modestly (1.2%), average revenue per user (ARPU) rose 3.1%, reflecting Telkom’s focus on profitable growth.
“Our strategy is customer-led, whether in prepaid or postpaid,” Siyo noted. “The results show that our propositions are well-received, driving both subscriber numbers and revenue.”
With a dividend reinstated last year, Telkom remains committed to balancing investment with shareholder returns. The company’s latest results underscore its resilience in a competitive telecom market, positioning it for further expansion in South Africa’s digital economy.