The process of value creation
3
This diagram provides an overview of our business model. Each capital is detailed further on the following pages.
Financial capital
The financial resources available to maintain and grow our business.
Key inputs
Equity invested by shareholders
R35 891 million
Retained earnings
R28 588 million
Net debt
R6 366 million
Cash generated from operations
R12 264 million
Constraints
PIVOT Strategy
Partnerships
Integrated solutions
Value-rich broadband
Operational efficiency
Technology innovation
Sustainability Strategy
Prosperity
Planet
People
Activities to preserve and sustain value
Read more about our activities to preserve and grow financial capital in the GCEO’s report and GCFO’s report.
Outcome indicators
Group revenue growth (1.4% increase to R44 477 million)
EBITDA margin (28.1%)
Free cash flow (R3 068 million)
Headline earnings (21.5% year-on-year growth and 708.5 cents per share)
Net debt to adjusted EBITDA ratio (leverage) (0.5 times)
Return on invested capital (11.2%)
Capex-to-revenue ratio (capex intensity) (14.5%)
Declared ordinary dividend of 270 cents per share and revised dividend policy to a payout range of 40% – 60% of free cash flow
Key
Capital increased
Capital preserved
Capital eroded
Productive capital
Our fixed and mobile infrastructure provides the foundation for connectivity, digital services and data-led growth across consumer, business and wholesale markets. It includes earth stations to provide satellite services and towers to transmit across radio spectrum and support the delivery of mobile voice and data services. Fibre-optic and remaining copper cables connect fixedline customers. Data centres provide hosting, disaster recovery and cloud services to business customers. Cable landing stations offer international communications diversity, improving customer service levels for global access, services and products.
Key inputs
Mobile base stations and fibre network footprint
8 420 sites and >180 000 km
Homes and businesses passed with fibre
1 539 209
99.94% access,
99.91% transport, and
99.99% core network availability
3
satellite earth stations
3
undersea landing stations
Fibre to base station connections
9 525
Total mobile spectrum portfolio
184 MHz and 486 active
5G sites
Data centre footprint and IT capacity
R12 264 million
Cash generated from operations
12 600 m2 and 9.82 MW
Constraints
PIVOT Strategy
Partnerships
Integrated solutions
Value-rich broadband
Operational efficiency
Technology innovation
Sustainability Strategy
Prosperity
Planet
People
Activities to preserve and sustain value
Read more about our activities in the productive capital and the GCEO’s report.
Outcome indicators
Fixed network availability – broadband access (99.94%)
Mobile blended ARPU (R76)
Mobile broadband subscribers in Telkom Consumer (31.1% growth to 19 961 588)
Fibre broadband subscribers in Telkom Consumer (11.6% growth to 597 582)
Fibre to the home connectivity rate (53.1%)
Fibre to base station connections (3.3% growth and 9 525)
Mobile broadband data traffic (18.5% growth and 2 084 petabytes)
Enterprise next-generation data access revenue in BCX (R1 699 million)
Key
Capital increased
Capital preserved
Capital eroded
Intellectual capital
The intangible assets associated with our brands, our legal licences to operate, our collective expertise and processes, and the strategies, policies, procedures, standards and codes that govern how we do business.
Key inputs
The DNA of Telkom’s key brands
The Group values and initiatives to embed the values
Innovation projects
to support our drive for operational
efficiency, integrated solutions and
technical innovation
Leveraging AI
to improve products, services, internal
processes and decision-making
Future-ready workforce
(refer to human capital)
IT systems, research and development
Internal policies, procedures and
frameworks
(governance framework and ERM
framework) and environmental
management systems to maintain
compliance and internal controls
Constraints
PIVOT Strategy
Partnerships
Integrated solutions
Technology innovation
Sustainability Strategy
Prosperity
Planet
People
Activities to preserve and sustain value
Read more about our activities in the intellectual capital, the GCEO's report and in the sustainability report.
Outcome indicators
Openserve's NPS is 79 and BCX's NPS is 35
Retained a spot in the top two in the Ask Africa Orange IndexTM 2025
Escalated customer complaints (decreased by 35%)
Number of data breaches (0)
Fibre average time to install (2.79 days)
Beyond Connectivity revenue and as a percentage of total mobile revenue (R1 699 million and 8.8%)
Mobile and fibre service revenue (16% increase and R33 323 million)
Use of AI for IT operations (AIOps) revenue growth (35%)
Key
Capital increased
Capital preserved
Capital eroded
Human capital
Our human capital includes current and future skills, competencies, experience, health and wellbeing. It encompasses human capital dynamics such as culture, ethics, diversity, and motivation to be productive and innovative.
Key inputs
Permanent employees
9 463
Training and development spend
R132 million
3 506
employees who attended training
Internships and learnerships
876
Corporate governance practices, including remuneration and reward practices, and an experienced leadership team
Policies, processes and practices on safety, health, environment and quality
Constraints
PIVOT Strategy
Operational efficiency
Sustainability Strategy
Prosperity
Planet
People
Activities to preserve and sustain value
Read more about our activities in the human capital and in the sustainability report.
Outcome indicators
Certified as a Top Employer in South Africa
Employee net promoter score (improved – good place to work: 25, good products and services: 45, work environment: 19)
Salaries and benefits paid to employees (5.6% increase to R8 484 million)
Succession planning (45% ready-now successors)
Key talent retention rate (87%)
Internship and OneTelkom learning programmes retention rate (99%)
Female representation (33%) and women in leadership positions (37.3%)
Black South African representation (73%)
Employee voluntary turnover rate (3.8%)
Total recordable injury frequency rate (0.57)
Lost-time injury frequency rate (0.52)
Fatalities (0)
Key
Capital increased
Capital preserved
Capital eroded
Social and relationship capital
Social and relationship capital reflects our contribution to South Africa's society and is anchored in our purpose of seamlessly connecting our customers to a better life.
Key inputs
A sustainability strategy
that includes digital services, empowering
communities, digital planet and investing
with purpose
Stakeholder engagements
and relationships
supported by a stakeholder engagement
framework and policies and a stakeholder
management programme
Established structures
to execute Telkom’s corporate
responsibility activities, such as the
Telkom Foundation and FutureMakers
Programme, with investments of
R68 million and R24 million, respectively
Strategic partnerships
with IT application providers and other
key partners and suppliers
Constraints
PIVOT Strategy
Partnerships
Technology innovation
Sustainability Strategy
Prosperity
Planet
People
Activities to preserve and sustain value
Read more about our activities in the Sustainability Strategy, our stakeholders, and the social and relationship capital.
Outcome indicators
Economic value added (R51 907 million)
Number of jobs created (direct and indirect) (74 114)
Procurement opportunities (R709.3 million) supporting SMMEs (362)
Number of learners and teachers impacted (47 860)
Lives positively impacted through SMME spend (260 337)
Lives impacted through digital literacy (122 521)
Customers connected to broadband and fixed wireless broadband (611 369)
South African homes and businesses passed with our FTTx footprint (1 539 209)
Revenue from global IT hardware and software partnerships (R1 538 million)
Key
Capital increased
Capital preserved
Capital eroded
Natural capital
This includes the use of natural resources, comprising renewable energy sources such as solar energy and water, and other nonrenewable resources. It also includes the environmental impact of electronic and electrical waste (e-waste) and carbon emissions.
Key inputs
Environmental management programmes for water and electricity usage that consider international best practices and relevant laws and regulations
Water used
742 453 kL
Eskom electricity
433 GWh
Solar photovoltaic (PV) electricity used
9.9 GWh
Diesel-generated electricity
76 GJ
Diesel and petrol used for backup generators during loadshedding
2 673 kL
Fleet diesel used for transport
4 395 kL
Constraints
PIVOT Strategy
Partnerships
Operational efficiency
Technology innovation
Sustainability Strategy
Prosperity
Planet
Activities to preserve and sustain value
Read more about our activities in the natural capital and in the sustainability report.
Outcome indicators
Total carbon emissions (46.2% decrease)
Scope 1 and Scope 2 emissions (27.2% decrease)
Fossil fuel consumption (59% decrease)
Renewable energy use (7% increase)
Emissions from diesel use (78% decrease)
Migration from R22 refrigerant gases (12% decrease)
Waste to landfill (13% decrease)
E-waste/copper recycled (18.8% increase)
CDP climate change score (B)
Cumulative Internet of Things (IoT) devices deployed (141 761)
Key
Capital increased
Capital preserved
Capital eroded