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Telkom earnings shoot higher

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 11 Nov 2013

Fixed-line operator Telkom says its headline and earnings per share will be more than 500c higher per share when it reports interim results next week.

In a statement, the group says basic earnings per share for the six months to September will be between 546c and 550c higher, while headline earnings per share will come in at between 622c and 628c.

Telkom previously said earnings would improve by at least 20%, and that it would provide further clarity on a range when this became clearer.

The gain has been attributed to several factors, including a R2.2 billion gain on its post-retirement medical aid liability, a saving of R380 million in payments to network operators, and foreign exchange improvements of about R219 million.

In addition, the prior period's results included a once-off amount of R389 million, which was the provision for payment of a fine levied by the Competition Commission.

Telkom also told shareholders it had restated both headline and basic earnings per share due to the adoption of accounting rules. Basic earnings per share has been restated to 17.8c, from 32c, while headline earnings per share has gone from 37.2c to 24.9c.

A year ago, Telkom said its interim results yielded profit before tax of R547 million, which was 48.9% lower than in 2011.

Its results should be published on 18 November.

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