Half Year 2026 Telkom SA SOC Ltd Earnings Call Transcript
Key Points
- Telkom SA SOC Ltd (FRA:TZL1) reported a 3.4% growth in top-line revenue, driven by data-led propositions.
- The company achieved 12 consecutive quarters of leading service revenue growth in a competitive market.
- Mobile data subscribers now account for over 75% of the total base, contributing significantly to revenue growth.
- The company has maintained a strong balance sheet, with a cash balance of ZAR5.6 billion and unutilized facilities of ZAR4.3 billion.
- Telkom SA SOC Ltd (FRA:TZL1) has successfully implemented cost optimization programs, resulting in costs growing below the overall inflation rate.
- The company faces challenging market conditions, requiring meticulous planning and competitive propositions.
- There is a wide range in leverage targets, with net debt-to-EBITDA maintained at 0.7 times, but with a range up to 1.5 times.
- Working capital was negative due to various factors, impacting cash flow management.
- Competitors have launched competitive price plans in mobile data, posing a challenge to Telkom's market position.
- The company anticipates a moderation in mobile EBITDA margins in the second half of the year.
(audio in-progress) (video playing)
Good morning. My name is Kamohelo Selepe. I'm part of the Investor Relations team at Telkom. On behalf of the Board and management, I would like to welcome you to our interim results presentation for the six months ended September 30, 2025. This presentation is also live via webcast on BusinessDay TV, on LinkedIn and through a teleconference.
On stage, I have our Group CEO, Mr. Serame Taukobong; and our Group CFO, Ms. Nonkululeko Dlamini. They will be taking us through the presentation today. Our Group CEO will touch on how our data-led strategy continues to drive growth.
He will touch on how our business units have performed for the period. Our group CFO will give us an update on the financial performance. She will touch on key financial metrics, including the very topical financial metric, that is free cash flow. She will then give us details on how our cost efficiencies are improving our profitability. Mr.
Tauko will then come back to give us the outlook
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