JSE-listed Telkom on Tuesday posted a double-digit increase in earnings from continuing operations for the year ended March 31.

Headline earnings a share increased 21.5% to 708.5c, while basic earnings a share rose 5.5% to 719.5c, during the year under review.

Group earnings before interest, taxes, depreciation and amortisation (Ebitda) from continuing operations increased 5.8% to R12.48-billion, reflecting structural improvements in the cost base.

This resulted in the Ebitda margin expanding to 28.1%.

“These results validate our strategy for Telkom's transformation as we confidently position the group for consistent quality earnings that allow for enhanced shareholder returns,” said Telkom Group CEO Serame Taukobong.

“As a result, we have increased our dividend payout ratio to a range of 40% to 60%, with the board declaring an ordinary dividend at 45% of free cash flow,” he said.

The company declared an ordinary cash dividend of 270c a share, up 65.7% on the prior year.

During the year ended March 31, group revenue increased by 1.4% to R44.48-billion, driven by growth in Consumer and Openserve, partly offset by revenue decline at BCX.

Group data revenue was up 7.6% to R26.59-billion, contributing 59.8% to total revenue, an increase from 56.4% in 2025, while mobile data revenue grew by 10.5% and fibre-related data revenue by 6.3%.

“Further validation is provided by our Mobile business, which surpassed 25-million subscribers and sustained market-leading service revenue growth for the fourteenth consecutive quarter, in its 15-year anniversary.”

Openserve also achieved a remarkable milestone, recording full-year overall revenue growth for the first time in nine financial years, an indication that the transition to fibre services is largely complete.

During the year ended March 31, Telkom Consumer achieved mobile service revenue growth of 6.8%, pre-paid service revenue growth of 10.3% and a 31.1% increase in mobile data subscribers to nearly 20-million. Mobile Ebitda margin expanded to 29% during the year under review.

Openserve’s overall revenue grew by 2.3%. The fibre-related data revenue increased by 8.2%, with a fibre-to-the-home connectivity rate of 53.1%. The Ebitda margin improved to 33.5%.

Meanwhile, BCX’s IT business revenue was stable at R6.72-billion, cybersecurity revenue increased by 21.1% and IT hardware and software revenue rose 5.6%. The businesses Ebitda margin remained resilient at 9.4%.

“Our data-led strategy remains our key growth driver. Having established the OneTelkom approach and as the backbone of South Africa's digital future, we are now focused on the next phase of value creation,” Taukobong continued.

“This will be through further increasing efficiencies and improving growth across the board. By allocating capital expenditure (capex) to projects that enhance returns, we will continue the disciplined execution that is by now the hallmark of our transformation.”

Over the next year, Telkom will balance growth investment and cost discipline, with capex intensity remaining within the 12% to 15% range, primarily funding Mobile and fibre to support revenue growth.