The Directors have pleasure in submitting the annual financial statements of the Group and Company for the year ended 31 March 2026.
The Directors confirm that Telkom complies with the provisions of the Companies Act, 71 of 2008 (as amended) 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.
Telkom is an integrated communications and information technology service provider for South Africa.
Total profit for the year ended 31 March 2026 for continuing operations was R3 548 million (31 March 2025: R2 783 million for continuing operations and R4 720 for discontinued operation) representing basic earnings per share of 719.5 cents for continuing operations (31 March 2025: 566 cents for continuing operations and 962 cents for discontinued operation) and headline earnings per share of 708.5 cents for continuing operations (31 March 2025: 467.5 cents for continuing operations and 77 cents for discontinued operation). Full details of the financial position and results of the Group are set out in the accompanying audited annual financial statements.
The Group's revised dividend policy provides for an annual dividend payout of 40% to 60% (previously 30% to 40%) of Free Cash Flow (FCF), subject to a solvency and liquidity assessment in accordance with sections 4 and 46 of the Companies Act. No interim dividend is envisaged due to the seasonal nature of Telkom's cash flows. The policy also provides for the declaration of a special dividend, at the Board's discretion, arising from non-recurring transactions or corporate actions that may result in additional cash proceeds.
Details of the final dividend in respect of the year ended 31 March 2026 are included under events after the reporting period in note 13 of the accompanying annual financial statements.
The global energy shock due to geopolitical conflict has increased macro-economic volatility, resulting in higher oil prices, currency fluctuations and inflationary pressures that could constrain consumers' disposable income. The Group has assessed the potential impact of the global energy shock and details of the assessment are included in note 2.3 of the accompanying annual financial statements.
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 2026 were:
| 31 March 2026 Rm |
31 March 2025 Rm |
|
| Aggregate amount of profit after taxation | 1 205 | 1 786 |
| From continued operations | 1 205 | 1 210 |
| From discontinued operation | — | 576 |
Details of the authorised, issued and unissued share capital of the Company as at 31 March 2026 are contained in note 9.1 of the accompanying annual financial statements.
There were no share repurchases in FY2026.
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.
Details of the Company and Group's capital commitments on property, plant and equipment as well as intangible assets are set out in note 5.1 and note 5.2 of the accompanying annual financial statements.
Events subsequent to the reporting date are set out in note 13 of the accompanying annual financial statements.
There were no appointments and/or resignations from 1 April 2025 to the date of this report.
The Board of Directors as at the date of this report is as follows:
Details of each Director may be found on our investor relations website.
At 31 March 2026, the following Directors held a beneficial interest in the shares of Telkom SA SOC Ltd:
| Executive Directors | Shares |
| S Taukobong | 322 283 |
| Non-executive Directors | |
| M Booi | 3 000 |
| KA Rayner | 2 500 |
| Subsidiary Directors | |
| BN Apleni | 17 917 |
| NM Lekota | 157 085 |
| H Motlekar | 82 473 |
| LM Siyo | 12 974 |