Telkom to reward shareholders
Telkom to reward shareholders
Jun 03 2005 02:54:25:540PM
By: Shoks Mzolo
Johannesburg - South Africa's fixed-line monopoly Telkom (TKG) is - according to analysts surveyed by I-Net Bridge - poised to deliver another set of positive results for the year ended March 2005.
The telecommunications group, which will announce its earnings results on Monday at 07:00, looks set to lift its headline earnings per share (HEPS) to R11.20 from R8.64 reported last year.
Analysts anticipate that a R5 dividend will be declared after Telkom declared a total maiden dividend of R2, (110c final and 90c special dividends,) in 2004.
They ascribed the anticipated growth to the company's ability to cut costs and restructure which also entailed rentrenchments.
Analysts' views are also in line with Telkom's upbeat trading statement last month in which it said its earnings are expected to soar, due in part to restructuring and extending lives of certain assets.
The company - listed on the Johannesburg and New York bourses in March 2003 - said in a trading statement on May 10 it expects an increase of between 35% and 55% in headline earnings per share basic earnings per share.
Since being floated on the JSE, Telkom's share price has grown four-fold to current levels of about R112.
In the US, the stock has gained 374% in value from $13.98 per American Depositary Receipt or ADR (one ADR equals four ordinary shares) in March 2003 to $66.25 per ADR at its NYSE close on Thursday.
One analyst said the main issue going forward concerned the kind of policy that would be put in place both in terms of dividend as well as growth strategies.
Turning to CEO Sizwe Nxasana - whom he described as an exceptional and prominent leader - and his resignation, the analyst speculated that Telkom probably did not have a succession plan in place.
He added that the arrival of a new leader, expected during the second half of 2005, would not pose any disruptions to the firm as it was a well-balanced company.
Another analyst said Telkom's subsidiary Vodacom, in which VenFin and the UK's Vodafone Group are 15% and 35% shareholders respectively, is set to report good results on the back of an ever-growing number of mobile subscribers in South Africa.
Vodacom has 15.5 million subscribers located in five Southern African countries and is currently eyeing a slice in Nigerian GSM market where the MTN Group (MTN) is already a market leader with more than 4 million customers.
Telkom is awaiting a response from the Nigerian authorities after it submitted a letter of interest for a 51% holding in fixed-line operator Nitel in January.
In 2004, Telkom's group operating revenue added 8.8% to R40.795bn with Vodacom's operating revenue rising to R10.352bn from R8.401bn in 2003.
Telkom to reward shareholders
Jun 03 2005 02:54:25:540PM
By: Shoks Mzolo
Johannesburg - South Africa's fixed-line monopoly Telkom (TKG) is - according to analysts surveyed by I-Net Bridge - poised to deliver another set of positive results for the year ended March 2005.
The telecommunications group, which will announce its earnings results on Monday at 07:00, looks set to lift its headline earnings per share (HEPS) to R11.20 from R8.64 reported last year.
Analysts anticipate that a R5 dividend will be declared after Telkom declared a total maiden dividend of R2, (110c final and 90c special dividends,) in 2004.
They ascribed the anticipated growth to the company's ability to cut costs and restructure which also entailed rentrenchments.
Analysts' views are also in line with Telkom's upbeat trading statement last month in which it said its earnings are expected to soar, due in part to restructuring and extending lives of certain assets.
The company - listed on the Johannesburg and New York bourses in March 2003 - said in a trading statement on May 10 it expects an increase of between 35% and 55% in headline earnings per share basic earnings per share.
Since being floated on the JSE, Telkom's share price has grown four-fold to current levels of about R112.
In the US, the stock has gained 374% in value from $13.98 per American Depositary Receipt or ADR (one ADR equals four ordinary shares) in March 2003 to $66.25 per ADR at its NYSE close on Thursday.
One analyst said the main issue going forward concerned the kind of policy that would be put in place both in terms of dividend as well as growth strategies.
Turning to CEO Sizwe Nxasana - whom he described as an exceptional and prominent leader - and his resignation, the analyst speculated that Telkom probably did not have a succession plan in place.
He added that the arrival of a new leader, expected during the second half of 2005, would not pose any disruptions to the firm as it was a well-balanced company.
Another analyst said Telkom's subsidiary Vodacom, in which VenFin and the UK's Vodafone Group are 15% and 35% shareholders respectively, is set to report good results on the back of an ever-growing number of mobile subscribers in South Africa.
Vodacom has 15.5 million subscribers located in five Southern African countries and is currently eyeing a slice in Nigerian GSM market where the MTN Group (MTN) is already a market leader with more than 4 million customers.
Telkom is awaiting a response from the Nigerian authorities after it submitted a letter of interest for a 51% holding in fixed-line operator Nitel in January.
In 2004, Telkom's group operating revenue added 8.8% to R40.795bn with Vodacom's operating revenue rising to R10.352bn from R8.401bn in 2003.
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