Higher profits from Telkom

By Iain Scott for Telkom

Johannesburg, 09 May 2006

Fixed-line operator Telkom says in a trading statement issued last night that it will report higher earnings for the year to 31 March.

The group, which owns 50% of cellular network operator Vodacom, says the figures are still being finalised, but it expects a 35% to 45% increase in basic earnings per share (EPS) and a 30% to 40% increase in headline earnings per share (HEPS).

Telkom attributes the improvement to higher revenue and lower employee expenses and depreciation charges.

"Lower employee expenses were as a result of the reduced number of employees and lower depreciation charges were as a result of the continuing assessment of useful lives of assets," it says in its trading update.

The results are scheduled for publication on 5 June.

For the year to March 2005, Telkom achieved EPS of R12.42 and HEPS of R12.74, up from R8.12 and R8.63 respectively.

The Telkom share closed at R143.30 on the JSE yesterday, 77c or 0.5% lower than the previous close.