Telkom expects higher earnings

Telkom says it expects headline earnings per share and basic earnings per share for the six months ended September 2013 to be at least 20% higher than the corresponding period in 2012.

In the interim period in 2012, Telkom announced basic earnings per share of 85.2 cents, while headline earnings per share from continuing operations decreased by 35.5% to 191.7 cents.

Shares in Telkom rallied 3.77% or R1, to R27.50 in afternoon trade on the JSE on Tuesday (8 October), having gained 5% to R26.50 on Monday after regulator, Icasa, announced plans to cut mobile termination costs dramatically

Telkom noted that results for the prior comparable period were negatively affected by the provision for the Competition Commission fine of R389 million.

Telkom made admissions to engaging in “margin squeezing” against competitors, as well as excessive pricing.

“The results for the period to be reported on will be positively impacted by lower finance charges and a review of the underlying assumptions for the determination of post-retirement benefits,” Telkom said.

“The lower finance charges relate to foreign exchange and fair value gains following the weakening of the rand against major currencies,” it said in a trading statement.

For the period ended September 2012, Telkom reported group operating revenue of R16.387 billion.

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Telkom expects higher earnings