Chairman Mveleni Jeffrey Khene stated that Telkom's financial resilience allows the company to navigate turbulence and continue investing in a global environment characterized by geopolitical instability, inflationary uncertainty, and risks related to energy and supply chains.
For the 2026 financial year, the company demonstrated its financial strength and a culture of high performance. Telkom achieved an improved EBITDA margin of 28.1%, and free cash flow increased to R3.1 billion. Meanwhile, the leverage ratio remained at 0.5 to net debt to EBITDA, ensuring the group's ability to absorb shocks and invest responsibly.
A key aspect was ensuring network availability and protecting customer interests. The board of directors oversaw continuous investments in enhancing energy resilience and optimizing the network while encouraging cost discipline. The data-driven strategy and network modernization are aimed at capturing growing demand for artificial intelligence in the market and expanding margins.
Although there were no fundamental changes to the strategy, the focus shifted towards execution discipline, capital efficiency, and sustainability in a more constrained economic and competitive landscape. However, the implementation of the strategy has shown mixed results. Strengths lie in the strategic pillars related to data, core connectivity, and infrastructure. Nevertheless, revenue growth remains below the group's medium-term ambitions, and BCX metrics have yet to stabilize in the moderate enterprise ICT market.
CEO Serami Taukobong noted that customers require modern, data-optimized infrastructure, even where full 5G coverage is still emerging. Currently, the company is focusing on enterprise and industrial 5G capabilities, particularly in mining and for internal coverage, prioritizing effective deployment in these high-demand areas, including targeted upgrades to site infrastructure such as power, transmission, and structural capacity.
Alongside 5G investments, LTE capacity expansion continues to meet current demand and prepare for the future. The prepaid services market remains a significant growth area, as the 2026 financial year saw strong growth in mobile internet subscribers and data traffic, with the prepaid segment delivering impressive service revenue growth. Additional opportunities exist in digital and financial services, including top-ups, insurance, and related digital platforms, which strengthens customer stickiness.
Through expanded fiber penetration and the convergence of mobile and fixed usage, the group's ability to leverage the Openserve infrastructure alongside mobile distribution is increasing. This allows Telkom to more effectively drive data growth among households and small and medium enterprises. Taukobong emphasized that growth will come from data utilization, platform services, and integrated connectivity, not just subscriber numbers.
Accessibility remains a defining characteristic of the South African market. The company is focused on value-based pricing. Instead of engaging in unsustainable price competition, Telkom aims to offer affordable services while protecting margins through efficiency, scale, and differentiated offerings. This balanced approach is crucial for achieving sustainable growth amid tight regulation and price sensitivity. The company's overall goal is to become a simpler, more focused Telkom that consistently translates strategy into revenue, cash flow, sustainability, and shareholder value.
Deputy Prime Minister of Uzbekistan Jamshid Khojaev held a meeting with Mohammed Abunayyan, co-chairman of the Uzbekistan-Saudi Business Council and chairman of the board of directors of ACWA. During the discussion, the parties focused on accelerating the implementation of previously reached agreements and expanding the participation of Saudi investors in priority economic sectors of Uzbekistan.
According to Jamshid Khojaev, the current portfolio of joint initiatives covers areas such as energy, infrastructure, water supply and wastewater management, district heating, healthcare, and digital infrastructure.
Among the significant projects mentioned is the construction of a new international airport in Tashkent with planned investments of $2.75 billion. Projects for wastewater management worth $300 million and the development of a data processing center with investments of about $150 million were also discussed.
Jamshid Khojaev emphasized that the further development of business ties and the expansion of investment partnership between Uzbekistan and Saudi Arabia will open up new opportunities for long-term cooperation and sustainable economic growth.
Uzbekistan's Deputy Prime Minister Jamshid Khojaev held a meeting with the founder of ST. Wonderful, Tian Shu Chun, to discuss further cooperation in the field of urban development and modern infrastructure.
ST. Wonderful is already implementing several large projects in Tashkent. Among them are the residential complexes High Town City and Wonderful City, as well as the High Town Mall shopping center, which opened in March 2026.
The main focus of the meeting was on the company's projects within the framework of New Tashkent. ST. Wonderful intends to invest about $500 million in the development of the China Town area and $50 million in the construction of the Beijing Plaza hotel. The total investment volume for these two projects is estimated at approximately $550 million.
Jamshid Khojaev assured that the government is ready to provide the investor with all necessary support at all stages of project implementation. He also noted the potential for expanding cooperation with ST. Wonderful and launching new investment initiatives in Uzbekistan.
The international company ADEC Innovations is studying the possibility of opening a service center in Uzbekistan. The purpose of this center will be to provide services in global business, data processing, and software development.
Representatives of the company and IT Park Uzbekistan discussed the prospects of this project during the Forum on Global Business Services in 2026. The meeting included Jakhongir Kadirov, Director of Export Development of IT Park Uzbekistan, and Pravin S. Eakhvava, Director of Global Business Services Development at ADEC Innovations.
The parties discussed issues related to the development of global service operations in Uzbekistan, the creation of service centers, and interaction within impact sourcing. ADEC Innovations offers services in global business services, environmental consulting, data analysis, and business process outsourcing. The company operates in more than 17 countries and has over 3500 employees.
Cooperation between IT Park Uzbekistan and ADEC Innovations began in May 2026. During this period, the parties held a number of working meetings focused on assessing Uzbekistan's potential as a hub for global service operations, as well as on implementing projects in the field of outsourcing and digital services.
The potential ADEC Innovations service center in Uzbekistan could provide data processing, software development, and global business services. Furthermore, participants discussed using the company's international experience to train specialists, create jobs, and implement impact sourcing projects.
Special attention was paid to educational programs for youth. Participants discussed jointly forming initiatives for developing digital skills, providing professional training, and creating a talent pool for international service centers. At the end of the meeting, IT Park Uzbekistan and ADEC Innovations agreed to continue studying possible areas of cooperation and evaluating the feasibility of launching the company's projects in Uzbekistan.
