Telkom up 171% in shares

[Cerberus]

"Telecommunications utility Telkom on Monday reported a sparkling set of interim results, with headline earnings per share up 171.1 percent to 335.9 cents for the six months ended September 30 from 123.9 cents a year ago.

The group declared a once-off interim dividend of 90 cents per share.

The group's operating revenue grew 9.8 percent to R20.11-billion from R18.316-billion before, and operating profit increased 51.2 percent to R4.250-billion for the period.

EBITDA margins during the same period expanded to 37.8 percent compared to 32.3 percent in the prior period primarily as a result of the strict cost discipline in the fixed-line business."

http://business.iafrica.com/news/287212.htm

Though it does seem like their Net Profit has had a little loss they make it up for the amount they pay for international connections and bandwidth purchases. I hope this increase will filter through to us but I won't hold my breath.

Regards
Cerberus

[SK33T]

Surely the strengthening of the Rand should make the price of Bandwidth come down like everything else.

[ASF]

In theory it should assuming:
1. That Telkom don't use it as another way of boosting profits
2. That the contract between Telkom and the Sat/fibre providers caters for currency flucuation.

I wouldn't hold my breath though....

[SK33T]

But Telkom surely wouldnt sign a deal like that on a fixed rate we all knew the rand was getting stronger at the release of adsl here in SA.