South Africa’s Telkom has reported an 8.4 per cent rise in third-quarter core profit, driven by robust mobile and fibre data growth.
The company said aggressive prepaid offers, cost controls and improved credit management boosted earnings, as mobile subscribers surpassed 25 million and data revenue climbed sharply.
The partly state-owned company said on Monday that adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose to 3.2 billion rand (Sh 25.9 billion) in the three months to December 31. Its EBITDA margin expanded to 29.1 per cent compared with the same period a year earlier.
Telkom attributed the improvement to disciplined cost management and sustained demand for data services. “Our total adjusted costs declined for the period and were flat year-to-date,” the company said in a statement.
The group added that it had also “experienced a decrease of impairment of receivables due to rigorous credit vetting in consumer (business) and the continuing proactive receivables management by BCX.”
Mobile service revenue increased by 7.2 per cent, continuing to outpace the wider South African market. Telkom said this performance reaffirms its position as the fastest-growing mobile operator among larger rivals.
The company has credited its momentum in part to its strategy of offering aggressive prepaid data deals aimed at boosting volumes while maintaining affordability for cost-sensitive consumers. Prepaid service revenue grew 11.6 per cent during the quarter.
Group data revenue, which accounts for 61.6 per cent of total revenue, rose 9.6 per cent to 6.9 billion rand (Sh 55.9 billion). Mobile data revenue climbed 12.9 per cent, driven by strong growth in mobile data subscribers and increased traffic.
Mobile subscribers exceeded 25 million customers during the quarter. The number of mobile data subscribers rose 29.3 per cent to Sh2.49 billion, “due to tailored value-focused plans,” Telkom said.
The company indicated that these tailored packages have played a central role in expanding its customer base, particularly in the prepaid segment, where affordability remains a key concern for many South African households.
Fibre-related data revenue also increased, rising by 8.9 per cent during the period. At Openserve, Telkom’s fibre infrastructure business, revenue grew 2.2 per cent, supported by what the company described as continued fibre monetisation.
The figures reflect a broader industry trend in which demand for connectivity, particularly mobile data, continues to strengthen.
Telkom’s performance suggests that competitively priced data offerings, combined with tighter cost control, are helping to improve profitability even in a challenging economic environment.
While revenue growth remains important, the company placed significant emphasis on cost discipline. “Our total adjusted costs declined for the period and were flat year-to-date,” it reiterated, signalling a continued focus on operational efficiency.
The reduction in receivables impairment was also highlighted as a positive development, reflecting improved credit screening and collection processes within its consumer business and through BCX, its information and communications technology subsidiary.
By strengthening its prepaid portfolio and expanding data-driven services, Telkom appears to be consolidating its market position.
The steady increase in subscribers and rising data consumption has contributed directly to earnings growth.
As the telecommunications sector faces increasing competition and ongoing investment demands, Telkom’s third-quarter results suggest that data-led strategies and disciplined financial management are proving effective in driving both revenue and profitability.
