Telkom SA SOC Ltd (TKG) Earnings Call Transcripts

Telkom SA SOC Ltd's Latest Earnings Call - June 2, 2026

In the first half of fiscal year 2026, Telkom SA reported a modest revenue increase of 1.4%, driven by a strong performance in mobile services and a growing data-led revenue stream, which now contributes nearly 6% to total revenue. EBITDA rose 5.8% to ZAR 12.5 billion, with a margin expansion to 27.6% when excluding property sales. The company maintained its medium-term guidance while increasing its dividend by 5.7% to ZAR 2.70 per share, signaling confidence in cash flow generation despite ongoing challenges in legacy revenue streams.

Reported metrics

Guidance from management

Telkom maintained its medium-term guidance, emphasizing a balanced approach between growth investments and cost discipline. No specific revenue or EBITDA targets were provided for the upcoming quarters.

What management said

So we model the second half, I think I'd rather stick to the whole full year. So it is we've just concluded the new contracts. So it's a balance of the CapEx, a bit of the new contract coming in. So for your modeling purposes, I'd say, take the full year impact of that, which will give you a better flavor of what it would look like. So I think the best size of that would be to see where we land in the next spring per...

Sure, Brief we look at our headroom from a capacity perspective, the guys always keep between, I think, 30% to 40% of the headroom. We had various nodes. So you're talking of core the core always has between 30% to 40% headroom in there. So ran, I think it ranges across the board. So they certainly do have more than enough headroom. If you go down massive 9 with mean those various bills, I think they have more than a...

What analysts pressed on

Analysts expressed concerns regarding the ongoing decline in legacy revenues and the potential impact on overall profitability. There were also questions about the sustainability of mobile revenue growth and the effectiveness of the company's cost management strategies in the face of competitive pressures.

Main topics on the call

• Mobile Revenue Growth — Telkom's mobile segment achieved its 14th consecutive quarter of service revenue growth, reaching over 25 million subscribers with a 10.3% increase in prepaid service revenue. Management stated, "Mobile data revenue reac...
• Data-led Revenue Strategy — The company's data-led strategy is yielding results, with data-led revenues contributing nearly 6% to overall revenue. Management noted, "Our data-led strategy is working and is clearly reflected in the results," indicat...
• Cost Management and Efficiency — Telkom improved its cost-to-income ratio to 3%, driven by structural cost efficiencies. Management emphasized, "We are taking decisive action, improving execution, tightening cost discipline," which is crucial for mainta...
• Dividend Increase — The company raised its dividend by 5.7% to ZAR 2.70 per share, reflecting strong free cash flow generation, which increased by 10.4% to ZAR 2.1 billion. This move signals management's confidence in future cash flows desp...

Read the full Telkom SA SOC Ltd transcript (June 2, 2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 30 Telkom SA SOC Ltd earnings call transcripts on record, spanning June 22, 2020 to June 2, 2026. Based on this history, Telkom SA SOC Ltd reports quarterly. The most recent call on file is dated June 2, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

TKG

Exchange

JSE

Country

ZA

Sector

Communication Services

Industry

Diversified Telecommunication Services

Calls on record

30

First call

June 22, 2020

Most recent

June 2, 2026

Reporting cadence

quarterly