Telkom (TKG) Surges 55% on JSE After R6.75B Deal—Is R40 the Next Target?

Telkom SA SOC Ltd (JSE: TKG) is back in the spotlight after divesting Swiftnet SOC Ltd for R6.75 billion to streamline operations and reduce debt. The sale, concluded in March 2025 to a consortium led by Actis LLP and Royal Bafokeng Holdings, allows Telkom to focus on mobile, broadband and digital.

Swiftnet’s 4,000+ towers will continue to serve Telkom under a leaseback agreement to ensure network continuity.

Q3 FY2025 Snapshot: Operational Momentum Builds

For the quarter ended December 31, 2024, Telkom posted:

• Net Income: R1.07 billion (+18.1% QoQ)

• EBITDA: R8.67 billion

• Net Margin: 3.51%

• Debt-to-Equity: 50.9%

• ROE: 12.11%

• ROA: 6.97%

These figures reflect expanding profitability from mobile and fiber segments alongside efficient capital reallocation from asset disposals. The company’s FY2025 results, due June 10, will offer deeper insight into post-sale performance and reinvestment strategies.

Technical Setup: Momentum Builds Above ZAC 3,803

Telkom’s share price is trading at ZAC 3,860, up 54.6% YoY, after breaking above ZAC 3,803 resistance in a well-defined ascending channel. The breakout was confirmed by a bullish marubozu candle, and the 50-day EMA (ZAC 3,737) is still support.

MACD is positive with no divergence. If the price holds above ZAC 3,882, the way is open to ZAC 3,952, then ZAC 4,014.

Trade Setup:

• Buy Entry: Close above ZAC 3,882

• Targets: ZAC 3,952 and ZAC 4,014

• Stop-Loss: Below ZAC 3,736

Traders should monitor volume for confirmation and avoid chasing if the breakout stalls near resistance.

Conclusion: Strategic Clarity and Technical Strength Align

Watch volume for confirmation and don’t chase if the breakout stalls at resistance. With a clean balance sheet, growing earnings and good technicals, Telkom is up for more.

The market has endorsed its asset-light strategy and if this momentum continues Telkom will be South Africa’s digital backbone and deliver value to shareholders through execution and re-investment.