Telkom, which continues to be in talks with MTN over a reciprocal roaming deal, says earnings will be lower in the first half of the year.
The group alerted shareholders, as per JSE rules, this afternoon that headline earnings per share and basic earnings per share would be at least 20% lower than in the six months to September 2013.
Telkom explains the decrease is because of a once-off gain of R2.2 billion last year, which it achieved after it curtailed its post-retirement medical aid liability.
On a normalised basis, basic earnings per share would have gained at least 20% year-on-year, says Telkom. "The increase is mainly attributable to lower payments to other operators resulting from the decrease in mobile termination rates and lower asset write-offs."
Telkom, which will release its results on 17 November, says it will provide more specifics as soon as it has more certainty.
A year ago, Telkom recorded revenue flat at R16.5 billion, but benefited from the once-off curtailment, which added R2.17 million to its bottom line, boosting it from R159 million to R2.9 billion.
Telkom is in the midst of a restructuring process that could see as many as 2 500 managers retrenched as it seeks to cut down on costs in a revenue-constrained environment.
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