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Directors' report

To the shareholders of Telkom SA SOC Ltd (Telkom)

The Directors have pleasure in submitting the annual financial statements of the Group and Company for the year ended 31 March 2025.

The Directors confirm that Telkom complies with the provisions of the Companies Act and the laws of establishment, specifically relating to its incorporation; and it operates in compliance with its memorandum of incorporation and all relevant constitutional documents.

Nature of business

Telkom is an integrated communications and information technology service provider for South Africa.

Financial results

Total profit for the year ended 31 March 2025 for continuing and discontinued operations was R7 503 million (31 March 2024:R1 881 million) representing basic earnings per share of 1 528.0 cents (31 March 2024: 385.5 cents) and headline earnings per share of 544.5 cents (31 March 2024: 376.0 cents). Full details of the financial position and results of the Group are set out in the accompanying audited annual financial statements.

Dividends

Following the suspension of the dividend policy for three years from FY2021, a revised dividend policy was developed and approved by the Board in the prior year. The Board has considered the Group's business plans and is confident that Telkom will be in a position to pay dividends in FY2026.

Subsidiaries, associates and other investments

Particulars of the material subsidiaries of the Group are set out in note 12.1 of the accompanying annual financial statements.

The attributable interest of the Group in the after-tax earnings of its subsidiaries for the year ended 31 March 2025 were:

  31 March
2025
Rm
31 March
2024
Rm
Aggregate amount of profit after taxation 1 786 1 401
Share capital

Details of the authorised, issued and unissued share capital of the Company as at 31 March 2025 are contained in note 9.1 of the accompanying annual financial statements.

Share repurchases

In FY2025 Telkom purchased 3 900 000 shares from the market at an average price of R27.56 per share, for the employee share scheme. The shares were purchased through Rossal 65 Pty (Ltd), a 100% owned subsidiary whose purpose is to house treasury shares.

Borrowing powers

Telkom's Directors, subject to permitted encumbrance undertakings as outlined in its financing agreements, may mortgage or encumber Telkom's property, or any part thereof, and issue debt, whether secured or unsecured, whether outright or as security for other debt, liability or obligation of Telkom or any third party. For this purpose, the borrowing powers of Telkom are unlimited, but are subject to compliance with financial covenants set forth in its financing agreements.

Capital expenditure and commitments

Details of the Company and Group's capital commitments on property, plant and equipment as well as intangible assets are set out in notes 5.1 and 5.2 of the accompanying annual financial statements.

Significant events and transactions

Significant events and transactions during the year under review are disclosed in note 13 of the accompanying annual financial statements.

Events after the reporting date

Events subsequent to the reporting date are set out in note 14 of the accompanying annual financial statements.

Directorate

The following changes occurred in the composition of the Board of Directors from 1 April 2024 to the date of this report:

Appointments Date
M Booi 1 July 2024
M Msimang 1 July 2024
Resignations Date
LL von Zeuner 20 August 2024

The Board of Directors as at the date of this report is as follows:

  • MG Qhena (Chairperson);
  • S Taukobong (Group Chief Executive Officer);
  • N Dlamini (Group Chief Financial Officer);
  • M Booi;
  • O Ighodaro;
  • B Kennedy;
  • KP Lebina;
  • PCS Luthuli;
  • EG Matenge-Sebesho;
  • M Msimang;
  • KA Rayner;
  • IO Selele;
  • SP Sibisi;
  • H Singh; and
  • SH Yoon.

Details of each Director may be found in our integrated report (published on 24 July 2025).

Directors' interest

At 31 March 2025, the following Directors held a beneficial interest in the shares of Telkom SA SOC Ltd:

Executive Directors Shares
S Taukobong 265 689
   
Non-executive Directors  
B Kennedy 200
KA Rayner 2 500
Subsidiary Directors  
PJ Bogoshi 72 529
S Khuzwayo 17 917
NM Lekota 157 085
LM Siyo 12 513
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