PDA

View Full Version : Telkom SEC Filing 10th May 2005



Peapod
24-05-2005, 09:27 AM
From the SEC website http://www.sec.gov/edgar/searchedgar/webusers.htm
there's no instruction on the site that says what the protocol is for reproducing certain pieces of information or on the Telkom filing so just to be safe, PLEASE NOTE that I post this information WITHOUT PREJUDICE and any comment made thereon is strictly my own opinion and my own personal view raised to elicit open debate and discussion and for no other purpose than that.


TELKOM SA LIMITED TRADING STATEMENT

In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Securities Exchange South Africa, issuers are required to publish a trading statement as soon as they become reasonably certain that the financial results for the period to be reported on next will differ by at least 20% from those of the previous corresponding period.

Telkom is currently finalising its results for the year ending 31 March 2005,
which are expected to be released on 6 June 2005. Telkom accordingly advises that it expects an increase of between 35% and 55% in basic earnings per share and headline earnings per share for the year ending 31 March 2005 from the year ended 31 March 2004. The above results have been impacted by restructuring expenses and extending the useful lives of certain assets.
The main difference between basic earnings and headline earnings is the
impairment and write-offs relating to property, plant and equipment. This
trading statement has neither been reviewed nor reported on by the Company's external auditors.


Johannesburg

10 May 2005


extending the useful lives of certain assets.
does this mean no capital expenditure on infrastructure or improvements to existing infrastructure?

I am gobsmacked.

The filing goes on to indemnify Telkom if they dont actually perform as expected by stating that performance could be affected by inter alia

including, but not limited to, increased competition in the South African fixed-line and mobile communications markets; developments in the regulatory environment
Which in my book is as good as an admission of guilt - we will continue to print money while we have dominance in the market place and while the government protects us with legislation.

This is just SO not right. I am feeling very defeated and very saddened that our countrymen and women continue to be denied basic services while the international business community applaud Telkom for what is undeniably in business and trading terms, a superb performance. Ultimately Telkom are doing everything right as far as their performance on the stock exchanges go and one has to commend that.

However, remember the debacle about Nike? Nike had the lions share of the footware market until it was pointed out that their shoes were manufactured in the Philipines by children and women in sweatshops earning less than $8 a month? (i stand to be corrected here - i think that was the figure). In any case, there was outrage that a company could produce such incredible profit off the suffering of the people who made their shoes. I feel a similar situation is happening here. We have no choice but to use Telkom. There should be tighter control from government on pricing. Its all been said before, but no harm in saying it again especialy where Telkom continue this policy of inferior delivery and unfair pricing. They contradict everything that is proudly south african.

Again, this is purely my opinion and posted without prejudice. Agree/dont agree, its just my thoughts for a dreary tuesday morning.

MaD
24-05-2005, 10:15 AM
They also have no rollout targets anymore and of course only install in areas where they can make a profit.

Hence no poor areas. Which actually makes me want to kick them up the arse with every ounce of strength i can muster.

rsd
24-05-2005, 10:27 AM
This is really sickening...

At the moment there's a serious "bad-guy-in-movie-vibe" around Telkom. Lets hope this particular bad guy meets a suitably sticky end.

Argh... so frustrating

Edit: typo

Toby
24-05-2005, 11:45 PM
Regarding the start of the thread by PeaPod.

Please note the Quote

"including, but not limited to, increased competition in the South African fixed-line and mobile communications markets; developments in the regulatory environment"

What they are actually saying is that their Results may differ from the current unaudited to Audited Results

This an be viewed as a misrepresentation of facts as Telkom DO NOT HAVE COMPETITION IN THE FIXED LINE MARKET.

Any Auditors out there wish to comment

Peapod
25-05-2005, 12:39 PM
Regarding the start of the thread by PeaPod.

Please note the Quote

"including, but not limited to, increased competition in the South African fixed-line and mobile communications markets; developments in the regulatory environment"

What they are actually saying is that their Results may differ from the current unaudited to Audited Results

This an be viewed as a misrepresentation of facts as Telkom DO NOT HAVE COMPETITION IN THE FIXED LINE MARKET.

Any Auditors out there wish to comment

Oh awesome observation. Please please come back to us any auditors as I have contacts with the FED (now called SEC) from way back, who LIVE for little blapses like this and LOVE to turn them into monstrous rows. Any little thorns in TK side welcome heh heh.