Telkom projects over 100% HEPS surge on cost cuts and one-off relief

BizNews Reporter

Telkom SA SOC Limited (TKG) has issued a trading statement for the six months ended September 30, 2025 (H1 FY2026), advising shareholders that results are expected to increase significantly, triggering a requirement under JSE Listings Requirements.

The Group forecasts that its Headline Earnings Per Share (HEPS) from continuing operations will increase by a substantial 105% to 115% compared to the prior period (H1 FY2025). This projected range places HEPS between 301.1 and 315.8 cents, up from 146.9 cents previously. Basic Earnings Per Share (BEPS) for continuing operations is expected to grow by 80% to 90%, reaching 311.8 to 329.1 cents.

This dramatic anticipated rise is primarily attributable to large once-off expenses recorded in the prior comparable period. These non-recurring items included the after-tax impact of a R451 million derecognition loss related to the Telkom Retirement Fund (TRF) and R117 million in restructuring costs. Furthermore, Telkom cited continued underlying operating performance and focused structural cost containment as contributors to the earnings growth.

For total operations (continuing and discontinued, which included Swiftnet in the prior period), HEPS is expected to increase by 57% to 65%. Shareholders are cautioned that the financial information provided is preliminary and has not been reviewed or reported on by the Group’s auditors. Telkom anticipates releasing its full interim results on or about November 18, 2025.