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Telkom interim earnings to surge

Paula Gilbert
By Paula Gilbert, ITWeb telecoms editor.
Johannesburg, 28 Oct 2016
The earnings prediction pushed Telkom's share price over 7% higher, closing at R62.37 yesterday.
The earnings prediction pushed Telkom's share price over 7% higher, closing at R62.37 yesterday.

Telkom expects to report considerably better interim results, after putting the cost of last year's retrenchment packages behind it.

The telecoms operator says its headline earnings per share (HEPS), for the six months ended 30 September, will likely be between 370% and 390% higher than the previous corresponding period. Basic earnings per share (BEPS) will also rise by between 205% and 225%.

In the prior period, earnings were impacted by voluntary early retirement packages (VERPs) and voluntary severance packages (VSPs) of R1.5 billion with a tax benefit of R446 million.

On a normalised basis (excluding the impact of VERPs and VSPs and the related tax benefit), HEPS are expected to increase between 10% and 30%, and BEPS are expected to increase between 0% and 20%.

The earnings include the performance of Business Connexion, which has been incorporated for six months compared to one month in the prior period.

The news pushed Telkom's share price on the Johannesburg Stock Exchange over 7% higher, closing at R62.37 yesterday.

Telkom's interim results are expected to be released on 15 November.

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