Telkom has significantly increased its dividend payout to its shareholders in its year to March 31 after another year of strong operational performance and earnings growth.
Telkom lifted its dividend a sector-beating 65.7%, to 270 cents per share, for the year to March 31 after reporting another 12 months of strong earnings growth and healthy cash flows in the third year of its transformation strategy.
Telkom Group CEO Serame Taukobong on Tuesday said the increased dividend was the result of a strong financial performance over the year and the raising of the dividend payout policy range to 40% to 60% of free cash flow, up from the previous 30% to 40%.
The dividend increase beats Vodacom’s 18.5% rise in total dividend for the year to March 31, and it also beats MTN’s 42.9% rise in dividend to 500 cents per share for its 2025 financial year.
Telkom’s group data revenue increased by 7.6% to R26.6 billion. Group revenue increased by 1.4% to R44.5bn. Earnings before interest, tax, depreciation, and amortisation (EBITDA) was up by 5.8% to R12.5bn. Free cash flow of R3.07bn was 10.4% higher. Headline earnings per share of 708,5 cents have increased by 21.5%.
