We prepared this report for our providers of financial capital and other stakeholders. It shows the connections between our material themes, strategy, governance, performance and prospects. It addresses our divisions and subsidiaries (business units), unless otherwise stated.
This integrated report (the report) covers the financial year from 1 April 2024 to 31 March 2025 and includes significant subsequent events up to the report's approval date.
In this report, "short term" refers to the next financial year (ending 31 March 2026), "medium term" to the period ending 31 March 2028, and "long term" to beyond 31 March 2028.
The reporting boundary covers Telkom SA SOC Ltd, representing Telkom Group, which comprises Telkom Company and its subsidiaries. Telkom Company comprises the Corporate Centre (now including Gyro) and a division, Telkom Consumer. Telkom Group's operating subsidiaries are Openserve and BCX. These divisions and subsidiaries form Telkom's business units.
The sale of Swiftnet was completed with an effective date of 31 January 2025. Swiftnet was part of the Group's operating model for the first 10 months of FY2025. It is excluded from Telkom's operating model going forward.
Telkom Consumer Division
Openserve 100% owned subsidiary
BCX 100% owned subsidiary
Gyro Division
Our integrated reporting process reflects our integrated thinking.
Integrated reporting project team
The investor relations team, led by the GCFO, is responsible for compiling the report. This team, with assistance from external experts, provides guidance on the reporting approach and content. They ensure the report adheres to the <IR> Framework and other adopted reporting standards and frameworks.
Materiality determination process and material themes approval
Our Group Executive Committee (Exco) and Board of Directors (the Board) annually review and approve material themes that guide the preparation of the report.
Content contributors
Contributors from various functions and subject matter experts produce the content of the report. Group executives from various divisions and departments oversee this process to ensure that controls are applied in information gathering and drafting.
The content creation process includes interviews with selected Board and Exco Members, internal and external sources of trusted information used for decision-making, and extracts from other reports in the reporting suite.
The Exco is accountable to the Board for preparing the report. It reviews the reporting suite before submitting it to the Board Committees (Audit, Risk, Social and Ethics, and Remuneration) for review and discussion.
The Committees recommend the report to the Board, which gives final approval and sign-off.
The report is published online, ensuring accessibility to all stakeholders. Printed copies are available on request.
All reports in the reporting suite are prepared and released simultaneously to ensure that the information and data across the suite are aligned and consistent.
This report focuses on material themes. These are matters that materially affect our ability to execute our strategy and create value over the short, medium and long term. They have the potential to erode value for providers of financial capital and other stakeholders.
In FY2025, Telkom conducted a double materiality assessment - a comprehensive evaluation of the financial and sustainability impacts of our business operations. This process was concluded at the end of FY2025 and will inform our reporting from FY2026 onwards.
While the full outcomes of this assessment will be reflected in future reports, key insights and relevant material matters were incorporated in the sustainability disclosures. This keeps stakeholders informed of the most pertinent sustainability matters impacting our business and strategy.
We consider internal and external factors, relying on established processes, to identify and confirm our material themes. This process is set out as follows.
We identify relevant matters based on their potential to affect our ability to create value over the short, medium and long term.
We evaluate the importance of identified matters in terms of their known or potential effect on value creation and prioritise the matters based on their relative importance.
Exco and the Board review the material themes and approve them annually. The Board-approved material themes for FY2024 guided the FY2025 integrated report.
Our material themes for FY2025
Details on the material themes are on our material themes.
Combined assurance related to the integrated report
The Group follows a combined assurance approach to ensure the integrity of the report's information. Telkom Group Internal Audit (TGIA) assessed the completeness and accuracy of strategic non-financial KPIs presented in this report.
Certain financial information is derived from our Company and Group consolidated annual financial statements. PricewaterhouseCoopers Inc. (PwC) independently audited the consolidated annual financial statements and issued an unmodified audit opinion.
Independent external assurance provider IBIS ESG Consulting Africa (Pty) Ltd (IBIS) provided moderate assurance over selected non-financial indicators. Assured non-financial indicators are indicated with this icon A. Refer to IBIS's FY2025 statement of assurance, available online.
Forward-looking statements
Several statements in this report, and verbal statements that may be made by Telkom or Officers, Directors or employees acting on Telkom's behalf, constitute or are based on forward-looking statements. Such statements involve known and unknown risks, uncertainties and other important factors that could cause our actual results or achievements to be materially different from our future results, performance or achievements expressed or implied by such forward-looking statements.
Telkom cautions readers not to place undue reliance on these forward-looking statements. All written and verbal forward-looking statements attributable to Telkom, or persons acting on Telkom's behalf, are qualified in their entirety by these cautionary statements. Unless we are required by law to update these statements, we will not necessarily update any of these statements after the date of this report so that they conform either to the actual results or to changes in our expectations.
Any forecast financial information contained in this report was not reviewed or reported on by our external auditors.
The Board acknowledges its responsibility for the integrity of Telkom's integrated report. The Board confirms that it has collectively reviewed the contents of the report and leveraged the combined assurance obtained.
The Board is confident that the report addresses all material themes, and concludes that the information is materially presented according to the <IR> Framework.
The Board approved the report on 15 July 2025.
Mvuleni Geoffrey Qhena
Board
Chairperson
Serame Taukobong
Group Chief
Executive Officer
Nonkululeko Dlamini
Group Chief
Financial Officer
We recognise that integrated reporting and stakeholder information requirements continue to evolve. We welcome feedback to improve our integrated report and the rest of the reporting suite. Comments and feedback can be sent to our investor relations team at telkomir@telkom.co.za.
We use the following icons in the report to help stakeholders understand the integrated nature of our reporting.
Partnerships
Integrated solutions
Victory in broadband
Operational efficiency
Technology innovation
Regulatory environment
Competitive landscape
Customer expectations and experiences
Cyberthreats
Economic climate
Future-ready skills and expertise
Networks and digital technologies
Climate resilience
Customers
Government and regulators
Investor community
Employees
Organised labour
Suppliers and business partners
Financial capital
Productive capital
Intellectual capital
Human capital
Social and relationship capital
Natural capital
Digital services
Digital planet
Empowered communities
Business stewardship
Investing with purpose
Operational efficiencies
Telkom supports four primary SDGs:
Broadband refers to the high-speed internet provided through fibre, digital subscriber line (DSL), long-term evolution (LTE) and 5G networks.
EBITDA means earnings before investment income and finance cost, tax, depreciation, amortisation and write-offs, impairments and losses. It is a financial metric used to assess Telkom's operational performance by calculating its earnings before the impact of non-operational expenses.
Homes passed is the potential number of premises we are capable of connecting to a fibre to the home (FTTH) network in a service area.
Homes connected is the number of premises that are connected to our network and are subscribers or can become subscribers without further installation work.
Next-generation fibre refers to advanced fibre-optic technology that offers higher speeds, greater bandwidth and improved performance compared to traditional fibre networks. It is designed to meet the increasing demand for data-heavy services like streaming, cloud computing and smart applications.
Spectrum refers to the range of electromagnetic frequencies used to transmit data wirelessly. It is divided into different bands (e.g. radio, microwave and millimetre waves) and is a limited resource that mobile operators use to deliver services like 4G, 5G and Wi-Fi. Access to spectrum is regulated by government authorities. Its availability directly impacts the speed, coverage and quality of wireless communications.
Tier IV data centre is the highest level of data centre classification, designed for maximum uptime and reliability. It offers redundant systems for power, cooling and network connectivity, ensuring 99.995% availability.
5G is the fifth generation of mobile network technology, offering faster speeds, lower latency and greater capacity than previous generations.
Refer to the abbreviations section to view the full glossary.