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Productive
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Productive Capital

Gyro successfully disposed of non-core properties through three public auctions held during the year. These included properties previously earmarked for property development.

The conveyancing process was accelerated to ensure the transfer and registration of significant high-value properties in FY2025.

A total of 57 Gyro and Telkom-owned properties were transferred, yielding cash proceeds of R730 million.

As at 31 March 2025, 30 properties with sales proceeds of R280 million remain in the conveyancing process. These include 28 properties that were auctioned in December 2024 for proceeds of R125 million.

Gyro

Key strategic focus areas

  • Commercialise the property portfolio and dispose of non-core properties
  • Reduce building costs and enhance operational efficiencies

Challenges

  • Increasing energy costs
  • Vandalism and illegal occupation in view of dispersed property portfolio

ESG: Operational efficiencies OE

We made significant strides in ESG, including the circular economy. We continued to enhance the resilience and energy efficiency of Telkom's network and operations while reducing carbon emissions.

We reduced diesel consumption by 78% due to limited loadshedding and successful diesel optimisation projects. This lowered emissions and reduced operational costs.

Outlook

All 30 properties that were under conveyancing at 31 March 2025 are expected to be transferred in FY2026.

The exit and disposal of non-core properties is expected to continue in FY2026. This will further streamline Telkom's property footprint, optimise property operating costs and enhance the Group's liquidity position.

Property sales in FY2026 are not expected to yield the same level of proceeds, as most of the high-value non-core properties were sold in FY2025.

 
 

Productive Capital

Swiftnet continued to grow and commercialise the masts and towers portfolio and organically grow the colocation business while scaling up the PaaS offering.

Effective 31 January 2025, in line with the Group’s Value Unlock Strategy, Telkom disposed of its 100% equity interest in Swiftnet. The buyer was an infrastructure fund managed by TowerCo BidCo (Pty) Ltd, a subsidiary of Actis LLP, with Royal Bafokeng Holdings (Pty) Ltd as its B-BBEE partner.

Swiftnet

Key strategic focus areas

  • Optimise and grow the masts and towers portfolio
  • Build new towers to meet the demand of mobile network operators (MNOs)
  • Expand the range of products and services offered

Challenges

  • Ongoing loadshedding costs have impacted clients' profitability
  • Clients (MNOs and non-MNOs) are prioritising capex for power security over network expansion
  • Increasing theft and vandalism as high-value backup power systems are built

The effective date of the Swiftnet sale transaction was 31 January 2025. The operational and financial performance for the 10-month period ending 31 January 2025 was as follows:

  • 15 new towers built and completed and eight towers under construction, resulting in 4 012 productive towers
  • Continued focus on PaaS, with 501 PaaS solutions built
  • Revenue increased by 11.7% year on year to R1 221 million. PaaS was a significant contributor. Growth was also augmented by inflationary increases, new tenancies, 5G expansion and antenna upgrades by Swiftnet clients
  • EBITDA increased by 12.0% to R912 million at a strong EBITDA margin of 74.7%

Outlook

In view of the completed sale transaction, Swiftnet is being treated as a discontinued operation in Telkom’s FY2025 financial results and will not form part of the Group’s future reporting.

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