Group adjusted EBITDA margin2,3 up 3.6 ppts to
Leadership reflections on FY2025
2
Reflecting on a positive year, an interview with the Chairperson
Telkom’s improved performance has laid the building blocks for sustainable financial growth. Further investment in our infrastructure will help us realise the desired returns and expand our reach.
26.2%
We are committed to strengthening stakeholder engagement and creating longterm value for our shareholders.
Mvuleni Geoffrey Qhena
Chairperson
Q
Inflationary pressures and geopolitical tensions have impacted the global economic environment. How has Telkom performed against this backdrop?
A
We operated in a tough global economic environment in FY2025. The subdued economic growth attributed to geopolitical uncertainties and high interest rates significantly impacted consumer spending. The global economy is expected to stabilise, growing at a moderate 2.7% annual growth rate for the next two years1.
The global telecommunications industry was shaped by evolving trends such as the adoption of AI, 5G deployment, Internet of Things (IoT), and FTTH.
The South African economy was constrained by domestic challenges such as high unemployment, volatile global commodity prices, and geopolitics. We remained resilient and delivered on our data-led strategy despite the bleak macro-economic environment. Our operational and financial performance improved, including our net debt to EBITDA ratio and positive free cash flow.
Read more about our financial performance in the GCFO’s report on page XX.
Q
Telkom concluded the sale of Swiftnet as part of its Value Unlock Strategy. What role did the Board play, and will this transaction benefit Telkom going forward?
A
The Board played an instrumental role through the Investment and Transactions Committee which oversaw the transaction, working closely with the Group Exco. We held regular meetings to keep the Board abreast of developments and to ensure that we negotiated a prudent deal for Telkom.
The sale will have a positive impact on Telkom’s financial position. The substantial cash injection will enable us to reduce debt levels and financing costs. It also allows us to further invest in our key growth areas, such as mobile and FTTH, enhancing our capabilities as an infrastructure company. Going forward, the Value Unlock Strategy remains on hold as we redirect our focus to creating additional revenue from our existing infrastructure assets.
Q
The telecommunications industry continues to shift as technology evolves. What gives you the confidence that the PIVOT Strategy is fit to propel the Company into the future and solidify Telkom as the backbone of South Africa’s digital future?
A
The PIVOT Strategy remains relevant – it has supported our shift from voicedriven revenue to next-generation revenue in alignment with industry changes. Our strategy is anchored by five priorities, namely partnerships, integrated solutions, victory in broadband, operational efficiency and technology innovation.
One of our key strategic enablers is to monetise our infrastructure assets as OneTelkom. In FY2024, we embarked on the OneTelkom initiative to maximise our