Full Year 2025 Telkom SA SOC Ltd Earnings Call Transcript
Key Points
- Telkom SA SOC Ltd (JSE:TKG) reported a 3.3% growth in top-line revenue, driven by a 9.5% increase in data revenue.
- The company achieved a significant improvement in free cash flow by ZAR2.4 billion, returning ZAR1.3 billion to shareholders.
- Telkom's mobile business continues to lead the market with a 10.2% growth in service revenue and added over 2.7 million subscribers to the prepaid base.
- The company successfully executed the disposal of its towers business in Swiftnet, contributing significantly to the balance sheet.
- Telkom reduced its fuel usage by 47% and Scope 1 and 2 emissions by 11%, demonstrating a commitment to sustainability.
- Despite positive revenue growth, Telkom faced a 20% decline in legacy revenue within its OpenServ business unit.
- The company experienced staff turnover at OpenServe, with some employees moving to competitors.
- The leverage ratio guidance remains wide, indicating potential uncertainty in future capital expenditure or M&A activities.
- The effective tax rate was reduced to 19.1% due to one-off transactions, which may not be sustainable in the future.
- Telkom's cash balance decreased from ZAR3.7 billion to ZAR1.111 billion, despite proceeds from the sale of Swiftnet.
Good morning colleagues and esteemed guests. On behalf of the Telkom executive leadership team, it's my great pleasure to welcome you to our FY 2025 results presentation. Thank you for joining us today as we reflect on our performance over the past year and share the progress we've made in advancing our one Telkom vision. This gathering is not just about numbers, it's about the people, the purpose, and the momentum that continues to drive our transformation.
Today, we will hear from our Group Chief Executive Officer, Serame Taukobong; and our Group Chief Financial Officer, Nonkululeko Dlamini, who will take us through the strategic and financial highlights of the year. We will also hear from our leaders across our business units who've played a pivotal role in delivering this performance.
To all our speakers and teams behind the scenes, thank you for your commitment and preparation. And to everyone attending, especially our board members, your presence and engagement appreciated as we look ahead with confidence and renewed focus.
Let's begin. Okay. So
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