Telkom on Tuesday said it expects basic earnings per share and headline earnings per share for the year ended March to decrease by 50% to 60% and approximately 40% to 50% respectively, from the previous period.<\/p>\n
Discontinued operations include Vodacom Group, Telkom Media and Swiftnet.<\/p>\n
The group said the main differences between basic earnings and headline earnings are the impairments and write-offs relating to property, plant and equipment and intangible assets, adding that the aggregate amount of these adjustments in the period was R879m.<\/p>\n
Telkom said South African operations performed satisfactorily for the period to March 2009.<\/p>\n
However, its Nigerian operations, which were acquired in the previous financial year, ‘proved difficult’ and reported losses as a result of competitive pricing pressures and inadequately developed distribution channels, according to Telkom. “Much of the focus in Nigeria has been directed at the provisioning of an extensive fibre network for future benefit,” it said.<\/p>\n
Additional unusual items impacting earnings in 2009 included costs relating to the Vodacom black economic empowerment deal, estimated at R691m; fees expensed relating to the Vodacom 2010 demerger, estimated at R177m; foreign exchange and mark-to-market fair value losses relating to the Multi-Links put option, estimated R409m and; deferred tax credits of estimated R421m arising from the disposal of the investment in Vodacom.<\/p>\n
Telkom said it expects to publish its results on June 22.<\/p>\n