{"id":570142,"date":"2024-11-14T13:28:45","date_gmt":"2024-11-14T11:28:45","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=570142"},"modified":"2024-11-22T07:04:56","modified_gmt":"2024-11-22T05:04:56","slug":"boost-for-telkom","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/business-telecoms\/570142-boost-for-telkom.html","title":{"rendered":"Boost for Telkom"},"content":{"rendered":"\n

Telkom’s share price surged as much as 8% on Thursday after issuing an upbeat trading update ahead of its half-year results, which it is set to release next week.<\/p>\n\n\n\n

The stock traded as low as R26.66 at the start of the day but rose to a high of R28.76 following Telkom’s announcement.<\/p>\n\n\n\n

The company notified shareholders that it expects to report basic earnings growth of between 5% and 15% for the six months ended 30 September 2024.<\/p>\n\n\n\n

Headline earnings could decrease by 5% or increase by up to 5%, Telkom said.<\/p>\n\n\n\n

This would bring the company’s basic earnings per share to between 210.2 cents per share and 230.2 cents.<\/p>\n\n\n\n

Therefore, its basic earnings would be an estimated R1.03 billion on the lower end or R1.13 billion on the higher end.<\/p>\n\n\n\n

Similarly, the company’s headline earnings would be between 185.2 cents per share and 204.8 cents per share.<\/p>\n\n\n\n

However, Telkom said several once-off adjustments should also be taken into account.<\/p>\n\n\n\n

Tekom noted that its reported figures include restructuring costs and a R451 million after-tax charge relating to the termination its obligation in terms of the Telkom Retirement Fund (TRF).<\/p>\n\n\n\n

It also includes the consequential derecognition of the corresponding funding plan asset recognised under IFRS Accounting Standards.<\/p>\n\n\n\n

The TRF is a hybrid fund that was started on 1 July 1995 as a defined contribution plan for current employees and a defined benefit plan for retired employees on pension. <\/p>\n\n\n\n

However, recently, the Financial Sector Conduct Authority (FSCA) approved a change to the fund’s rules.<\/p>\n\n\n\n

“In the current period, the Financial Sector Conduct Authority approved a rule amendment for the conversion of the TRF from a defined benefit fund to a defined contribution fund,” Telkom stated.<\/p>\n\n\n\n

“This approved rule amendment removes the funding obligation risks towards the pensioners.”<\/p>\n\n\n\n

Subsequent to Telkom’s trading statement, the company assured that the fund would continue to pay out all pensions.<\/p>\n\n\n\n

“The rule amendment allows for independent functioning from Telkom as an umbrella fund and opened up for all employees of Telkom,” it stated.<\/p>\n\n\n\n

When adjusting for these once-off items, Telkom said its basic earnings per share growth would have been between 60% and 70%.<\/p>\n\n\n\n

This would have brought the company’s basic earnings to R1.57 billion on the lower end and R1.67 billion on the higher end.<\/p>\n\n\n\n

Similarly, its adjusted headline earnings per share are expected to increase by between 50% and 60%.<\/p>\n\n\n\n

Below is a chart of Telkom’s share price during November and a table giving an overview of Telkom’s expected earnings.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n
Total operations
(Continuing and discontinued**)<\/th>		Results for the six months ended 30 September 2023<\/th>Results for the six months ended 30 September 2024<\/th><\/tr>
Estimated range<\/th>Estimated increase \/ (decrease)<\/th><\/tr><\/thead>
Basic earnings per share<\/strong><\/td><\/tr>
Reported<\/td>200.2c<\/td>210.2c \u2013 230.2c<\/td>5% \u2013 15%<\/td><\/tr>
Adjusted*<\/td>200.2c<\/td>320.3c \u2013 340.3c<\/td>60% \u2013 70%<\/td><\/tr>
Headline earnings per share<\/strong><\/td><\/tr>
Reported<\/td>195.0c<\/td>185.2c \u2013 204.8c<\/td>(5%) \u2013 5%<\/td><\/tr>
Adjusted*<\/td>195.0c<\/td>292.5c \u2013 312.0c<\/td>50% \u2013 60%<\/td><\/tr>
Weighted average number of shares in issue<\/em><\/strong><\/td>486,099,500<\/em><\/td>490,870,665<\/em><\/td>\u2014<\/td><\/tr><\/tbody>
* Adjusted figures exclude restructuring costs, and a R451 million after-tax charge relating to the restructuring of the Telkom Retirement Fund.<\/em><\/td><\/tr>
** Swiftnet continues to meet the IFRS5 requirement and is classified as held for sale.<\/em><\/td><\/tr><\/tfoot><\/table><\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"

Telkom’s share price surged 8% on Thursday after issuing an upbeat trading update ahead of its half-year results.<\/p>\n","protected":false},"author":23,"featured_media":558868,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[41906],"tags":[109],"class_list":["post-570142","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-telecoms","tag-telkom"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/570142"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=570142"}],"version-history":[{"count":4,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/570142\/revisions"}],"predecessor-version":[{"id":571608,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/570142\/revisions\/571608"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/558868"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=570142"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=570142"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=570142"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}