Johannesburg, 05 Jun 2006
Telkom has declared a total dividend of 900c a share for the year to 31 March.
The fixed-line operator, which is presenting its full-year results in Midrand this morning, has declared an ordinary annual dividend of 500c per share and a special dividend of 400c per share.
The group achieved a 10.3% increase in operating revenue from R43.16 billion to R47.63 billion for the 2006 financial year, with operating profit rising 30.3% from R11.26 billion to R14.68 billion.
CEO Papi Molotsane says the improved operating margin is due to reductions in employee expenses and lower depreciation due to the extension of useful lives of assets.
Attributable profit rose from R6.75 billion to R9.18 billion, while basic earnings per share increased 39.9% from 1 246.7c to 1 744.7c.
Headline earnings per share rose 36.1% from 1 279c to 1 740.5c.
Important point
Molotsane says Telkom is at an important point in its development in an industry undergoing fundamental changes.
"Our customers require increasingly sophisticated products and services as technologies converge and the industry worldwide moves to an IP-based operating standard," he adds.
"In view of this, and with greater certainty in the local regulatory dispensation following accelerated liberalisation of the market, management has redefined its strategy to compete across the ICT value chain."
He adds that Telkom is strongly positioned to compete in a liberalised market and the group will pursue opportunities to provide the full spectrum of ICT solutions, including voice, data, video and Internet services increasingly through broadband penetration.
The group says the evolution to an IP-centric network is a business imperative, which cannot be delayed.
"It is imperative that the company increases investment in its network to reduce the cost of operating the network and to be able to deliver fully converged products and services to meet customer needs in a rapidly changing technological environment."
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