Telkom earnings down
Group operating revenue from continuing operations increased 6.9% to 35.9 billion rand, while operating profit decreased by 29.6% to 6.4 billion rand.
The group EBITDA margin decreased to 32.5% as at March 31, compared to 39.3% at March 31 2008, mainly due to an EBITDA loss of 226 million rand at Multi-Links and higher fixed-line operating expenditure which decreased the fixed-line EBITDA margin to 25.8% as at March 31 2009 (March 31, 2008: 36.3%).
Telkom said the reduced earnings could be attributed to a decrease in operating profit due to a 19.5% increase in operating expenses (R4,881 million) and higher foreign exchange and fair value movements (R1,098 million) partially offset by a lower taxation expense (R987 million).
Investments in Multi-Links and Africa Online were impaired by R462 million and 39 million rand.
“The impairments were necessitated by the operating losses incurred by these operations and the deteriorating prevailing economic climate. Multi-Links reported a net loss of R1.76 billion (March 31, 2008: net profit of R33 million),” the fixed-line operator said.
The group declared a dividend of 115 cents per share for the year. A special dividend of 260 cents per share was also declared.
Telkom earnings & profit discussion
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