Good day, ladies and gentlemen, and welcome to the Telkom Q3 FY 2025 trading update for the quarter ended 31 December 2024. All participants will be in listen-only mode. There will be an opportunity to ask questions later during the conference. If you should need assistance during the call, please signal an operator by pressing star, then zero. Please note that this call is being recorded. I would now like to turn the conference over to Nondyebo Mqulwana. Please go ahead. Thank you, Irene. Good afternoon, everyone, and welcome to our third quarter FY 2025 conference call. I am Nondyebo Mqulwana, Head of Investor Relations at Telkom. Our CEO, Serame Taukobong, and Group CFO, Nonkululeko Dlamini, will take you through the salient features of our performance for the third quarter and nine-month period ended 31st December 2024. Thereafter, we will take your questions. We also have Beauty Apleni on the call, our Chief of Staff Strategy, as well as the IR team. Just as a reminder, the commentary on this call is on continuing operations, that is, the Telkom Group excluding Swiftnet, our mast and towers business, as it is disclosed as a discontinuing operation. All numbers and growth rates quoted are year-on-year and refer to the quarter ended 31st December 2024 and are compared to the quarter ended 31st December 2023. When speaking to year-to-date numbers, growth rates are year-on-year, meaning that they are being compared to the nine months ended 31 December 2024 versus the nine months ended 31st December 2023. Furthermore, year-to-date Adjusted Group EBITDA and Adjusted EBITDA margin exclude restructuring costs, as well as the impacts of the conversion of the Telkom Retirement Fund. Serame will now take you through the key highlights of our performance. Thank you kindly, madam. Good afternoon all, and thank you for joining us on the call. We are pleased to report strong operational results for the third quarter, reaffirming our position as the backbone of South Africa's digital future. Our data-led strategy continues to deliver impressive performance across key metrics, underscoring our competitive advantage in our diverse businesses working together to realize the results as one Telkom. With strong momentum across our business units, we remain confident in achieving our medium-term objectives as we continue to invest in our infrastructure, network, and digital services, delivering profitable growth. We have maintained our momentum in the third quarter, with year-on-year group revenue growing in line with our medium-term guidance, while Adjusted Group EBITDA growth exceeded expectations at 21.4% and increased the Adjusted Group EBITDA margin by 4.3 percentage points to reach 26.5% for the nine months. Turning now to the quarter's key highlights, the 28% growth in group EBITDA for the quarter reflects operational excellence achieved across the group, driven by a commitment to enhancing efficiencies and scaling our strategic initiatives. Our mobile business continues to deliver robust growth, while Openserve Fiber data revenue also saw growth. BCX IT services revenue demonstrated positive growth for the quarter. The disposal of Swiftnet has progressed as planned. The bulk of transfers for property sales were completed during the quarter ahead of time. I will now turn to operational results for each of our business units, starting with the mobile business, which sits under consumer. Mobile service revenue increased by 9.6% and continues to grow ahead of the South African market as demand for our reliable connectivity increases. Prepaid subscribers grew strongly, driven by the optimization of our proposition called Mo'Nice, our channel and consumer insight utilization, as well as the introduction of affordable 4G devices in the past quarter. The prepaid ARPU at ZAR 61 was within our optimal range. The prepaid ARPU decrease is attributable to the non-metro regions that, while they attract a lower output, do drive increased volumes. The post-paid segment has started to show signs of recovery, and the ARPU of this base has improved to ZAR 185. Turning to Openserve, Openserve grew fiber service revenue by ZAR 121 million, reflecting the strength of our infrastructure investments. External revenue driven by fiber connections increased by 9.2%. Openserve will continue the growth in fiber revenue, passing and connecting homes. On BCX, BCX IT services revenue increased by 6.8%, highlighting the success of our tailored solutions in meeting evolving customer needs in a highly competitive environment. The low margin hardware and software sales were deliberately moderated, which supported the EBITDA margin for this business. The focus is to continue to grow the high IT margin services for BCX. Overall, the data-led strategy, supported by a smart CapEx deployment, continues to yield results. Mobile data revenue increased by 10.8%, benefiting from mobile subscriber and traffic expansion. Mobile data subscribers are now almost 15 million subscribers. Fiber-related data revenue was up by 14.7% across the group. Data services grew by 5.9%, driven by growth in fiber and uplifted revenue from the converged communication business as BCX continued to manage the transition to fiber-related services. Mobile and fixed data traffic grew by 22.2% and 23.7%, respectively. In the past year to date, we have invested ZAR 3.6 billion in CapEx, and our smart CapEx deployment has resulted in the following: 142 mobile sites integrated year-on-year, 125,000 additional homes passed in the past year with a matching 100,000 homes connected, and a high connectivity rate maintained at 49.8%. We still expect our CapEx intensity at the end of the financial year to be closer to the midpoint of our guidance. That is, the 12%-15% range. Additional CapEx has been allocated to mobile for capacity expansion, given their growth, and further to invest in power resilience, worsening load shedding on the network. Our execution of cost optimization initiatives resulted in solid EBITDA growth. Mobile optimally managed to mix away from devices and improved growth. Openserve network simplification and energy transformation programs delivered cost savings. BCX has started to see cost savings from the staff restructuring and managed debt recoveries. Work is also underway for facilities consolidation, which will still add to cost savings. The team in Gyro transferred 22 properties ahead of time, realizing cash of ZAR 417 million. We have concluded the sale of high-value properties, and any future property sales will be dependent on the optimization of our property portfolio. In terms of the Swiftnet transaction, that is our towers transaction, ICASA approved the Swiftnet disposal in December, and we are on track to close the transaction and receive the cash by the end of this financial year or soon thereafter. This transaction marks a key milestone in our portfolio optimization efforts. Nonkulu will now take you through the financial performance, and I'll come back to conclude. Thank you, Serame, and good afternoon to everyone on the call. Our revenue increased by 0.9% in the third quarter to ZAR 11 billion and 1.6% to ZAR 32.4 billion for the nine months. For the third quarter ended 31st December 2024, Telkom consumer revenue increased by 4% to ZAR 7.2 billion. Mobile revenue was up 6.5% to ZAR 6.3 billion. This was driven by a steady mobile service revenue growth. Openserve revenue declined marginally by 0.4% to ZAR 3.1 billion. However, fiber data revenue increased by 5.4%. Although BCX revenue declined overall, IT service revenue grew by 6.8%, and converged communication revenue increased by 1.7% to ZAR 1.4 billion. Group EBITDA was up 28% in the third quarter to ZAR 3 billion, and the group EBITDA margin improved to 27.2%. Excluding property sales, group EBITDA margin was 25.1%. The main contributors to the improved profitability are the following: Telkom consumer EBITDA increased by 51.4%, supported by the robust mobile service revenue growth and cost optimization initiatives, leading to a 6.5 percentage points uplift in its EBITDA margin to 20.8%. Mobile EBITDA grew by 46.9% to ZAR 1.8 billion, resulting in an EBITDA margin of 27.6%. The reduced cost of handsets and equipment and the decline in the impairment of receivables, among others, contributed to the improved mobile EBITDA margin. Openserve EBITDA increased by 5.4% to ZAR 1.1 billion, and the EBITDA margin improved to 34.4%. This was driven by the efficiencies emanating from the network simplification and energy transformation programs. BCX grew EBITDA by 36% in the quarter to ZAR 438 million, and EBITDA margin was at 15% for this third quarter. As a result of the strategic focus on higher margin IT services and the proactive management of receivables, with a shift of the product mix towards IT service supporting the margin. However, BCX EBITDA year to date remained lower by 6.1% at ZAR 991 million, with the EBITDA margin stable at 11% compared to the prior nine months in the prior year. Adjusted Group EBITDA year to date amounted to ZAR 6.8 billion, with the Adjusted Group EBITDA margin at 26.5%. The group financial position remained resilient, and we further reduced interest-bearing debt by 2.7% to ZAR 12.6 billion. We repaid maturing bonds amounting to ZAR 400 million in November without a need to refinance in the bond market. As a result, our net debt to adjusted EBITDA improved from what we had reported at the half-year level. On the free cash flow fund, although we don't report on the quarterlies, we are pleased that it remains positive, and it is on track in line with our expectations. We concluded another handset sale during the quarter, bringing the total cash flow received from handsets to over ZAR 750 million for the nine months to December 2024. I now hand back to Serame to conclude. Thank you, Nonkulu. In closing, Telkom's strong financial results reflect our relentless commitment to executing our InfraCo strategy as one Telkom. These results provide clear evidence that we are on track delivering profitable growth while reinforcing our role as the backbone of South Africa's digital future. By leveraging our unique capabilities, we continue to meet the growing demand for data-led services while driving improved operational efficiencies across all our businesses. We remain confident in our strategic direction and our ability to create sustainable value for our stakeholders. Thank you for your time and continued support. I will now hand over to the operator for Q&A. Thank you. Ladies and gentlemen, if you would like to ask a question, please press star and then one on your touch-tone phone or on the keypad on your screen. You will hear a confirmation tone that you have joined the queue. If you decide to withdraw the question, please press star and then two to remove yourself from the question queue. Once again, if you would like to ask a question, you may press star and then one. Please note that we will be taking three questioners at a time. The first question we have is from Preshendran Odayar of 36ONE Asset Management. Please go ahead. Hi everyone. Congratulations on another consistent set of good results. I've got three questions if I can. The first one is on the mobile side. What percentage of your mobile recharges actually comes from airtime advance? I know you mentioned it grew by 35%, but I just want to know overall what percentage is actually coming through the advance book as opposed to the cash book. And then two for Nonkulu. I know you mentioned that your gearing level has improved. Are you able to share with us what it is at the end of this quarter? And then the second one for Nonkulu as well is. I'm just trying to work out what is your expected net cash that you will receive from the Swiftnet sale? Because I remember that there's a loan balance of around ZAR 200 million there. There's also some taxes. I just want to know what would be the amount that you'd see in your bank account when you get that SMS when the money flows in. Thanks. Thanks, Presh. To your first, it's just giving me a multiple decimal here. It's to the accurate last decimal, 31.59%. Did you get that? Yeah, perfect. Thanks, Serame. All right. Thank you. So on your first question on the gearing, yes, we've seen an improvement. And at this point in time, you would recall at H1, we had reported around 1.5x, and we are trending at about 1.3 times at this point in time on net debt to EBITDA. Then on the cash that we expect from the Swiftnet sale, you would recall we have indicated that the price is ZAR 6.75 billion. And the minor adjustments would really relate to little things like where the working capital is at the point of closing the transaction. So we're not necessarily expecting a very significantly different set of numbers from the price on the table, but obviously, it will be determined by, at that point in time, minor movement in some of the working capital among others. You covered, Presh? Yes, yes. Thank you very much, Serame. Happy with the answers from both you and from Nonkulu. The next question we have is from Nadim Mohamed of SBG Securities. Please go ahead. Good afternoon, Serame and team. I've been asked to ask all my questions. I'll just ask from my side. Just on the prepaid, the net adds of another 1.2 million, I mean, that's really impressive and no sign of churn from this strong quarter in the last quarter. I just want to understand, I mean, what should we expect? Should we expect some deceleration in growth, meaning that you will now pass the 20 million mark? I just want to understand what kind of strategy you're leveraging to keep that momentum going. And the second, could you give us a look at what you're seeing on the ground in the December quarter? You're obviously seeing the red team push a higher prepaid data growth and higher data volumes, but it seems like Telkom has been quite the capture of volumes versus revenue has been quite good, like in 22% versus 11%. So I'd like to get a sense of what kind of promotional and other activities you're seeing on the ground and where you can see you gaining or losing share. I would appreciate that. Thank you. Thanks, thanks, Nadim. I think not everybody has obviously released their results, but I think from a market activity, if I look at, and this is my personal push with the team, I think overall the market was far more responsible, for lack of a better word, in the prepaid drive. I mean, if you look at December last year, I think everybody went quite crazy in prepaid acquisition. I think the total gross acquisitions across all three networks, the big ones, were almost over five million. It looked far more tempered this year in terms of gross acquisitions. I think everybody went for more responsible acquisition, which is good in the market. So yes, you are right. The Red team came back fighting, but we had also quite solid propositions in the market. The big focus area is in that 2G acquisition where most customers are migrating to data. The propositions that the team have put in place really talk to our strengths, so among other things, making sure that some of the packages they have built in have, for instance, WhatsApp and Facebook built into some of the devices, which is quite attractive for the customer base moving in. The balance in terms of your third question is what the guys have now crossed 20 million. It is a key focus on maintaining acquisition with retention, so we're not going for a spray and cook. We have to make sure that it is a cost-effective acquisition because if you're going to a washing machine, you really are just putting money down the drain. So Lunga and his team have a big focus on ensuring that as they bring the base in, they move them quickly into a recharging mode, which is why they're focusing quite a high attention on the amount of recharges and their recharge activity. And they've seen that continuing quite well. So it's a strong balance between acquisition with more and more focus on retention to hold that base as you bring them in. I hope I've covered you there, Nadim. Thank you. Thank you so much. And just quickly, if you could give me a sense of how significant those smartphones and cells are that you mentioned earlier on, I mean, are they in terms of a push to 4G smartphones? I think in terms of it's not extremely massive volumes, not to the quantum of our peers because it really is very focused and targeted. The guys were trialing some new devices in the market. It's 4G devices below ZAR 1,000. They were piloting a specific device, which they did through PEP. So it's early days. And once again, it is cost-effective as opposed to just going quite crazy in that market. So we're not talking millions here, Nadim. Wonderful. Thank you so much. Appreciate that. The next question we have is from Jonathan Kennedy-Good of Prescient Securities. Please go ahead. Good afternoon, and congrats on the results. I just wanted to. I've been dropped off the call a few times. Sorry about if I'm covering old ground here, but just wanted to ask you on the mobile margin expansion, which was quite strong, and I think you mentioned that this is partially due to lower handset pricing and I think it was lower impairments as well. Should we expect a retracement in the margin? How should we think about mobile margin going into next year, fourth quarter next year? If you could help with that, that would be great. Thank you. Thanks, Jonathan. We can certainly send the team from Openserve to deal with that connectivity for you. On the mobile, so it's a mix of two things in this quarter. You absolutely right. The mix of devices, it was looking at a lower range of devices. That was the one contributor. The second part obviously the roaming agreements have also kicked in. So we've seen the roaming costs also come down to match that. Obviously, we pushed on mobile EBITDA to get to 25 by 25. I think in terms of where they're heading in the year end, they will get there. I think what's key for us is we don't have that horrible scare on the 31st of January where load shedding came in. Now, that does have an impact in many senses, both from recharges and also the impact of roaming. So we're not sure how that is going to go on in the remainder of the quarter. So I think for a year-end perspective, they will be most probably on the other side of 25. We are still pushing the guys in terms of the long-term ambitions that their next milestone is 27 by 27 as I've indicated. And I think that the team is pretty much holding steady towards that. I hope that covers you, Jonathan. Yes, great. And if I just may follow up on Nadim's question regarding your strategy on the 2G customers, I presume you're targeting 2G customers from the other networks with these offers. Given my understanding was that your 2G base would be quite small. And if so, is it really a price-driven strategy or do you find that the handset strategy is the driver of how you're trying to take market share there? Thanks. So definitely not our 2G base here, right? We don't have much of that. It is a combination of both. So if you look at what is attractive to those customers, it is the price proposition and the strong offer predominantly of WhatsApp and Facebook, which is built into that specific device, which is quite attractive then for these customers as they're moving from 2G to your 4G. So it's a holistic proposition. And because those packages are standard to us, we've not had to significantly drop pricing. I think all of you have seen Louise's latest price report. We remain quite confident in there. We've not had to significantly drop pricing. It's really being making sure that those devices are affordable and available. As I indicated to Nadim, the guys were also pricing devices at below ZAR 1,000 and doing a specific pilot with PEP on a unique, specifically designed proposition for Telkom, where the guys did put a bit of a subsidy in it. I think at about ZAR 299 to get it to a price point closer to ZAR 799 for those customers. But we feel that the base introduction proposition is at the right spot for those customers. Wonderful. Thanks so much for the info. Ladies and gentlemen, just another reminder. If you would like to ask a question, you may press star and then one. We will pause a moment to see if we have any further questions. It seems that we have no further questions at this time, and I would love to hand back to Serame for any closing remarks. Thank you very much. I'm sure we'll be engaging with you more details in the next few days. Once again, thank you for joining the call and your continued interest in Telkom. As we mentioned, we are presently and solidly on the path of executing our infra- core strategy as one Telkom, and we wish you a stunning afternoon for that. Thank you. Ladies and gentlemen, that concludes today's conference. Thank you for joining us. You may now disconnect your lines.