Telkom job cuts cost R1.5 billion
Telkom has reported that its voluntary severance and retirement programme has cost the company R1.52 billion, affecting 3,108 employees.
In a trading statement released on 3 November, the group reported that its headline earnings would be between 65% and 85% lower for the six months ended September 2015.
This was largely due to the retrenchment process which was not part of normal business operations.
Normalised headline earnings, however, would be between 5% lower and 15% higher, as the resultant employee expenses would be lower due to a lower headcount emanating from retrenchments.
| Telkom earnings | 30 September 2014 | Expected change | 30 September 2015 expectation |
|---|---|---|---|
| Basic earnings per share | 217.4 | 45%-65% lower | 98cps – 141cps lower |
| Normalised | 263.2 | 10%-30% higher | 26cps – 79cps higher |
| Headline earnings per share | 215.8 | 65%-85% lower | 140cps – 183cps lower |
| Normalised | 261.7 | 5% lower -15% higher | 13cps lower – 39cps higher |
The primary reason for the higher increase in normalised basic earnings per share (10% – 30% higher) when compared to normalised headline earnings per share (5% lower – 15% higher) is the higher gain on sale of assets in the current period, which are excluded from the calculation of headline earnings per share, Telkom said.
Telkom said it will release its results for the six months ended 30 September 2015 on or about Monday, 16 November 2015.
More on Telkom
Cell C’s owners reject Telkom bid: report
New Telkom Openserve fibre-to-the-home areas announced
Loading ...