Celcom forecasts recovery

Johannesburg, 13 Feb 2008

AltX-listed Celcom says its results for the first six months of its 2006/7 financial year are going to be significantly higher than its previous interim results.

This is despite the fact that the company's previous interim results presentation - and first since listing - captured nine months of performance.

In March last year, Celcom CEO Stefano Brachini noted the company's acquisitions were not included in the interim figures and that overall he was pleased with the performance. However, later in the year, the company warned it may not meet the forecasts laid out in its listing prospectus.

In a notice to shareholders this morning, the company said it expects revenue to be between 80% and 90% higher than those of the previous period. In the nine months to December 2006, the company delivered turnover of R271 million.

Earnings, it says, are expected to be between 110% and 120% higher year-on-year than the R1.9 million in 2006. After being restated and reduced by R1.9 million in respect of the amortisation of intangible assets, headline earnings should be between 50% and 60% higher than the R1.9 million in the previous period.

Earnings per share (EPS) should be between 50% and 65% higher than the 1.27c in 2006 and headline EPS should be between 10% and 20% higher than those of the previous period, which were also 1.27c. This is also after being restated and reduced by 1.22c per share in respect of the amortisation of intangible assets.