Telkom has grown its annual profit by more than a quarter as its data-led strategy continues to bear fruit.The group on Tuesday reported a 27.5% rise in profit for the year to end-March to R3.55bn and increased its dividend payout ratio to a range of 40%-60%, with a total dividend of 270.1c — 45% of free cash flow.Group revenue for continuing operations was up 1.4% to R44.48bn, driven by growth in the consumer business and Openserve. This was partly offset by a revenue decline at BCX.Group data revenue was up 7.6% to R26.6bn, contributing 59.8% to total revenue, while mobile data revenue grew by 10.5% and fibre-related data revenue by 6.3%.Group earnings before interest, tax, depreciation and amoritisation (ebitda) rose 5.8% to R12.48bn, reflecting structural improvements in the cost base, Telkom said.Free cash flow increased by 10.4% to just more than R3bn, reflecting disciplined cash generation management.HEPS was up 21.5% to 708.5c.CEO Serame Taukobong said the group’s mobile business surpassed 25-million subscribers and sustained service revenue growth for the 14th consecutive quarter.“Openserve also achieved a remarkable milestone, recording full-year overall revenue growth for the first time in nine financial years, an indication the transition to fibre services is largely complete,” he said.Taukobong said the group’s data-led strategy remains its key growth driver. “Having established the OneTelkom approach as the backbone of South Africa’s digital future, we are focused on the next phase of value creation. This will be through further increasing efficiencies and improving growth across the board.“By allocating capex to projects that enhance returns, we will continue the disciplined execution that is by now the hallmark of our transformation.”For the 2027 financial year, Telkom’s capex intensity will remain within the 12%-15% range, primarily funding mobile and fibre to support revenue growth, while cost efficiencies protect margins. The combined effect will be geared towards free cash flow generation and a prudent leverage position.Telkom is valued at about R31.6bn on the JSE, having risen from the R19bn it was valued at at the end of March 2025.Business Day