Telkom Posts 10% Mobile Revenue Growth as Subscriber Base Hits 23M

AFRICAN STOCKS AND FINANCEJune 10, 2025 at 3:31 PM UTC

TLDR

Telkom reported mobile service revenue rose 10.2% in the year ended March 31, driving group revenue up 3.3%
The South African telecom added three million mobile users to reach 23.2 million customers
Subscriber growth jumped 13.4%, led by prepaid customers who increased 15.4%

Telkom reported mobile service revenue rose 10.2% in the year ended March 31, driving group revenue up 3.3%. The South African telecom added three million mobile users to reach 23.2 million customers. Subscriber growth jumped 13.4%, led by prepaid customers who increased 15.4%. Mobile data subscribers grew 19.5% to 15.2 million as demand for connectivity surged.

"The mobile business continues to be the star of the consumer business," said CEO Serame Taukobong. The company maintained average revenue per user at R60 ($3.30) despite expanding into price-sensitive markets. Telkom holds 15% market share behind Vodacom's 42% and MTN's 31%. The company targeted non-metro regions with cheaper data plans to drive growth.

Telkom's fiber unit, Openserve, grew revenue 10%, with fiber services accounting for 82% of its income. The division is building international cables connecting South Africa to Angola and Brazil through partnerships with Google. The company passed 1.4 million homes with fiber, up 13.3%. Telkom is investing in 4G and 5G networks to support digital services for African enterprises and governments.

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Key Takeaways

South Africa's telecom revenue will decline 0.5% annually through 2029 as voice services shrink, but mobile data revenue will grow 4.1% yearly. This shift favors operators like Telkom that focus on data services and network quality. MTN maintained a higher average revenue per user at R94 versus Telkom's R60, but Telkom's aggressive pricing attracts customers from premium operators. The company's strategy targets South Africa's large unserved population in rural areas. Telkom's fiber expansion through Openserve positions it for wholesale growth across Africa. The unit's international connectivity projects reduce South Africa's dependence on traditional submarine cable routes, improving network resilience for the region. The company's focus on 5G infrastructure supports government digitization goals and positions Telkom for enterprise contracts. South Africa needs improved connectivity to compete globally, creating opportunities for operators that invest in next-generation networks.

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