Integrated performance snapshot

Our six capitals for value creation are inputs to the PIVOT Strategy and operating system and link to our strategic outcomes. We measure performance against our strategy through financial and non-financial KPIs. Progress was made in FY2024, and we will continue to build on this in FY2025.

¹	Includes total operations.
²	Revenue was restated for the IFRS 15 prior period error and adoption of IFRS 17.
³	Excludes the impact of the R1 065 million restructuring cost in the comparative year.
⁴	This is a non-IFRS financial measure.
⁵	EBITDA was restated for the adoption of IFRS 17.
⁶	Includes restructuring and spectrum acquisition costs paid during FY2024 of R1 068 million and R972 million, respectively.

Notes relating to HEPS and BEPS:
–	Headline earnings per share (HEPS) up 201.3% to 376.0 cents excluding the restructuring cost of R1 065 million with the related tax impact of R288 million in the comparative year. We restated the HEPS comparative by 9.7 cents per share
–	Basic earnings per share (BEPS) up 442.8% to 385.5 cents excluding the impact of the R1 065 million restructuring cost and the cash generating unit impairment of R13 017 million with the related tax impact in the comparative year

	Revenue (Rm)	Free cash flow (FCF) (Rm)	EBITDA (Rm)	EBITDA margin (%)
	43 230^1,2	424^4,6	10 041^1,3,4,5	23.2%^1,3,4,5


What are we measuring?	Revenue derived from sale of goods and services. This is our total Group revenue.	FCF is cash that remains after we have paid for our operating expenses and capital outlays.	EBITDA is the Group’s key profitability measure.	EBITDA margin expresses EBITDA as a percentage of revenue.

Why is it important?	Revenue growth is important for sustainable long-term growth and is driven by increases in prices and number of customers.	Cash preservation remains a focus in the current economic environment and allows for investment in growth initiatives.	EBITDA demonstrates our ability to grow cash profit and deliver a return on our revenue.	EBITDA margin demonstrates how effective we are at converting revenue into profit and improving operational performance and efficiencies.

Performance	Revenue increased by 1.6% despite challenging trading conditions as our mobile and broadband strategies continued to bear fruit.	FCF improved by 115.6% to positive R424 million, mainly due to efficient working capital management and the increase in profit before tax of 337.2%.	EBITDA improved by 5.2% to R10.0 billion, owing to stronger operational performance and ongoing cost-optimisation initiatives.	EBITDA margin increased to 23.2% mainly due to cost‑reduction initiatives.
Capitals impacted:
Link to PIVOT Strategy:

Net debt^1,4
to EBITDA^1,3,4,5
(times)

Capital expenditure
(capex)
(Rm)

Next-generation
revenue
(Rm)

Employee
costs
(Rm)

Training and
development spend
(Rm)

1.7

6 134

34 356

7 895

168 A

A	External moderate assurance on selected sustainability indicators. Please refer to the FY2024 Independent Assurance Report available online.

What are we measuring?

Our ability to meet interest obligations and settle our debt balance in full.

Our investment in long-term assets indicates our growth and improving operations.

Revenue from the nextgeneration technology that replaced copper.

How much was paid to 9 877 permanent employees (FY2023: 11 624).

How much we spent providing employees with opportunities to build their skills and practise continuous learning.

Why is it important?

We aim to maintain a healthy balance sheet with net debt to EBITDA of between 1.5x and 1.9x and within the debt covenant requirement of less than 3x.

Managing capex is important to the Group’s financial health, as it is one of our biggest expenditures.

It indicates the progress in replacing traditional fixed-line revenues with cybersecurity and next-generation data revenue.

It measures the benefit created for employees and is one of our biggest operational expenditure drivers.

We are focused on enhancing employee skills to improve performance and retention and ensure that we remain competitive and adaptable in this fast-evolving industry.

Performance

The slight improvement in our net debt to EBITDA was driven by higher earnings despite the increase in net debt of 0.9%.

Capex decreased to R6 134 million due to reduced capital requirements during the year. The decrease aligns with our strategy and the cyclical nature of capital expenditure.

Our next-generation revenue increased by 7.0%, mainly because of fibre rollout and strong demand for carrier and enterprise services.

Employee costs decreased due to the 15.0% reduction in headcount, 0% salary increases for management and the 5.0% average salary increase for bargaining unit employees only effected in the third quarter of FY2024.

The 15.9% increase flows from our ongoing dedication to empowering employees with relevant skills and knowledge through our Learning4Growth initiative.

Capitals impacted:

Link to PIVOT Strategy:

Active mobile
subscribers
(number ’000)

Homes
passed with fibre
(number)

Fibre
connectivity rate
(%)

Interaction net
promoter score (iNPS)
Openserve
(score)

Total carbon
emissions
(tCO₂e)

Submitted our science‑based targets for verification which set out our plan to become a net zero business by 2040.

Completed energy strategy and in the process of implementation.

20 439

1 217 110

48.5%

639 041 A

What are we measuring?

The number of our mobile subscribers.

Our fibre footprint across the country.

The number of homes we have connected (590 527) as a percentage of the number of homes passed (1 217 110) with fibre.

We use iNPS to measure our Openserve customer loyalty and satisfaction.

Scope 1 and Scope 2 emissions generated from our operations.

Why is it important?

Growth in active mobile subscribers measures how our business is growing.

It allows us to assess the effectiveness of our expansion efforts, optimise resource allocation and plan future deployments strategically. By understanding the areas where our network is available but not yet connected, we can prioritise efforts to enhance connectivity and maximise our market penetration.

It helps us measure our market penetration, optimise network investments and assess service uptake. As a market leader, this helps us maintain our competitive edge and ensure high customer satisfaction by monitoring and enhancing our service performance.

It provides insights into the satisfaction and loyalty of our Openserve customers. We are able to identify areas for improvement, address customer concerns and focus on delivering excellent overall experience.

We aim to become carbon neutral by 2035 and achieve net zero by 2040, in line with the government’s commitment to reduce carbon emissions.

Performance

Our service revenue increased by 6.8% and surpassed 20 million mobile subscribers fuelled by the acquisition of higher-quality connections and improved recharging behaviour.

The number of homes passed with fibre increased by 17.0%, surpassing one million homes, because of efforts to expand our fibre footprint.

The number of homes connected grew to 590 527 (FY2023: 492 812). High‑capacity carrier connectivity increased by 4.8% while enterprise market connectivity grew by 2.5%.

We achieved a score of 70, an increase from 65 in FY2023, indicating significantly more promoters than detractors. This means enhanced customer satisfaction and loyalty.

We achieved a 9.3% reduction in our Scope 1 and 2 carbon emissions, mainly due to ongoing diesel optimisation and site terminations.

Capitals impacted:

A	External moderate assurance on selected sustainability indicators. Please refer to the FY2024 Independent Assurance Report available online.

Link to PIVOT Strategy:

E-waste
recycled
(tonnes)

Telkom Foundation
investment
(Rm)

Diversification
of procurement spend
(Rm)

Lives impacted
through SMME spend
(number)

Economic
value added
(Rm)

Our women in leadership positions increased to 34.1%from 33.0% in FY2023.

Over 50% of employees attended training courses.

100% of our Non-executive Directors on our Board are independent.

Achieved Level 1
B-BBEE contributor status for the second consecutive year.

6 458 A

71 A

339

228 594

51 572

What are we measuring?

We recycle our e-waste from operations as part of ongoing efforts to protect the environment.

Our investments in education, digital skills and social development.

Through our diversification of procurement spend, we can see how much we have spent on supporting small, medium and micro-sized enterprises (SMMEs).

The number of lives impacted through our spend on SMMEs.

Telkom’s contribution to the total economic value added through induced economic impacts stemming from the salaries and wages, the indirect economic contribution of our capital expenditure on infrastructure and our economic influence of the operational expenditure through both direct and indirect effects.

Why is it important?

Our products and services lead to high volumes of e-waste (batteries, copper, cabling, phones and electric equipment). We aim to manage these waste streams responsibly in line with the National Environmental Management: Waste Act, 59 of 2008.

Through investment in Telkom Foundation, we actively contribute to educational initiatives, skills development programmes and various social projects, fostering positive community engagement and enhancing our brand reputation.

It strengthens our supply chain by enhancing supplier capabilities and supporting economic growth and job creation in local communities. It also ensures our compliance with regulatory requirements, and demonstrates our commitment to corporate social responsibility. This investment improves sustainable business practices and improves stakeholder relations.

This demonstrates our commitment to social responsibility and attainment of SDG 8 (Decent work and economic growth). Supporting SMMEs results in jobs creation and each job ultimately supports more than three lives (Stats SA).

We are responsible for contributing to the socio‑economic environment in which we operate, and recognise that civil society and forums can impact our operations.

Performance

We increased recycling by 19.0%, mainly because of our initiative to sell copper recovered on local and international markets.

Total value invested increased by 11.3% to R71 million, reflecting our commitment to amplifying our social impact and community engagement efforts.

Diversification of procurement spend increased by 1.5% due to improved collaboration between FutureMakers and procurement to identify SMMEs for tendering opportunities.

The number of lives impacted has increased by 76.4% to 228 594 mainly due to adjustments from incremental to cumulative reporting and the sustenance and jobs created by SMMEs.

R51 572 million total contribution in indirect and direct effects in South African economy.

Capitals impacted: