Telkom expects improved earnings


Telkom released a trading statement advising shareholders that it expects a big jump in earnings for the first half of the year.

Telkom is finalising its interim results for the six months ended 30 September 2023, scheduled to be released on 21 November 2023.

The telecoms operator said it expects basic earnings per share to increase by between 45% and 55% compared to the same period last year.

It further expects headline earnings per share to increase between 40% and 50% and restated headline earnings per share between 35% and 45%.

“The difference between BEPS and HEPS is due to the net impact of impairment of assets and profit/loss on sale of assets,” Telkom explained.

Telkom said the increase in earnings is due to improved performance by the group, with both revenue and EBITDA growth.

Growth in earnings has also been positively impacted by lower depreciation after asset impairments recognised in the last financial year.

This has been partially offset by higher net finance charges and the non-recurrence of a R102 million gain on foreign exchange and fair value movements last year.

Telkom highlighted that it had previously incorrectly adjusted for the headline earnings, relating to the profit on disposal and impairment of property, plant and equipment, and intangible assets.

This led to a R21 million overstatement of headline earnings and a 4.3c overstatement of HEPS for period ended 30 September 2022.