TKG Share Price Bullish After Strong SA Telkom Earnings, Dividend Surprise

Telkom’s long-awaited return to dividend payments after four years sparked a sharp rally in its share price, following the release of...

Written by: Skerdian Meta • Wednesday, June 11, 2025 • 2 min read

• Last updated: Wednesday, June 11, 2025

Telkom Shares Pop 8% as Company Resumes Payouts and Beats Forecasts

Quick overview

Telkom has reinstated dividends after a four-year hiatus, announcing a special dividend of 98 cents per share.
The company's full-year earnings surged by 62.3%, driven by a 10.2% increase in mobile service revenue and a 10% rise in fibre-related data revenue.
Telkom's share price rallied significantly, opening at 4,300 ZAC and climbing as high as 4,408 ZAC, reflecting an 8% gain on the day.
The return to dividends and improved financial performance indicate a positive turnaround for Telkom, enhancing investor confidence.

Telkom’s long-awaited return to dividend payments after four years sparked a sharp rally in its share price, following the release of strong full-year earnings.

Telkom Resumes Dividends After Four Years, Stock Rallies on Strong FY Results

After four years of suspended payouts, Telkom SA SOC Ltd has reinstated dividends and reported a solid financial performance, marking a significant turnaround for the South African telecom giant. The company announced a special dividend of 98 cents per share alongside a strong 62.3% jump in full-year earnings, underscoring its improving financial health.

On Tuesday, Telkom shares opened strongly at 4,300 ZAC (43.00 rand) after closing Monday at 4,005 ZAC. The stock climbed as high as 4,408 ZAC—up 10%—before settling at 4,312 ZAC, posting an impressive 8% gain on the day.

TKG Share Price Chart Weekly – Upward Trend Reversal Confirmed

Back in 2020, the state-backed telecom operator suspended dividends as part of a broader restructuring plan to stabilize its finances. The original intention was to pause distributions for three fiscal years beginning in 2021. However, due to continued operational and cash flow challenges, that timeline was extended—until now.

This year’s decision to resume dividends comes amid encouraging fundamentals. Full-year revenue rose by 3.3% to 43.8 billion rand, beating the 43.5 billion rand consensus forecast compiled by LSEG. The gains were driven primarily by a 10.2% surge in mobile service revenue and a 10.0% rise in fibre-related data revenue—segments that are now key pillars of Telkom’s growth strategy.

Telkom SA SOC Ltd Earnings Highlights:

Headline earnings per share (HEPS) for continuing operations rose to 467.5 cents in the year ending March 31, up from 288.1 cents in the prior year.
The company declared a final dividend of 163 cents per share for shareholders.
Revenue increased by 3.3% to 43.8 billion rand, beating analyst expectations of 43.5 billion rand (LSEG consensus).

The upside surprise was driven by:

Mobile service revenue, up 10.2%, and
Fibre-related data revenue, up 10%, reflecting strong demand in both segments.

Adjusted EBITDA rose 25.1% year-over-year to 11.7 billion rand,
EBITDA margin expanded by 4.7 percentage points to 26.9%, supported by cost-efficiency measures.
Telkom, majority-owned by the South African government, continues to capitalize on its significant presence in the home and business fibre market.

In addition to the revenue beat, Telkom’s improved capital discipline paid off. The company’s free cash flow surged from 424 million rand last year to 2.8 billion rand, supported by its asset disposal program, higher top-line performance, and rigorous cost-optimization efforts.

Conclusion: Telkom’s return to the dividend-paying club, backed by double-digit growth in its mobile and fibre business lines, signals a rebound in investor confidence. With operational momentum returning and cash flows on the rise, the company appears well-positioned for a more stable and growth-oriented phase in its turnaround journey.

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.