Johannesburg, 07 Jun 2004
Telkom shareholders are to receive a final dividend of 110c a share after the telecommunications utility beat expectations to report a 175% increase in full-year headline earnings per share (HEPS).
Together with the 90c special dividend paid in December, this brings the total dividend for the 2003/04 financial year to 200c a share or R1.11 billion.
"The board aims to pay a progressively increasing dividend annually," says CEO Sizwe Nxasana. Only an annual dividend will be paid in future.
The group achieved HEPS of 863.6c for the year to 31 March, compared with 314c for the previous year. Analysts had on average been expecting HEPS of around 726c.
"In our fixed-line business, we expanded operating margins by aggressively defending revenues and systematic streamlining of our operations, while our mobile business continued to deliver robust growth by winning customers in the local market and in other African countries," Nxasana says.
Operating revenue rose by 8.8% from R37.51 billion to R40.8 billion, which Nxasana attributes mainly to a 23.2% increase in mobile revenue. Telkom owns 50% of cellular network operator Vodacom.
Cash from operating activities rose by 42.4% to R13.88 billion, which fully covered cash requirements for capital expenditure of R5.19 billion and allowed the repayment of R6.44 billion debt.
"Although the group will continue to look inward to extract further operating efficiencies, the focus will increasingly shift outward to seek new growth opportunities in selected new market areas, such as data, and exploiting synergies between fixed-line and mobile. Additionally, both businesses will seek to pursue considered African expansion."
The group is to present and discuss its financial results in Midrand later today. The Telkom share price was R81.50 in early trade on the JSE this morning, up R3.65 or 4.69% from Friday`s close.
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