Telkom lowers expected earnings

Telkom has on Monday (4 June) revised its expected earnings in a trading statement for the year ended March 2012.

The group advised shareholders that basic earnings per share from continuing operations are expected to be between 95% and 100% lower than the comparative period.

Headline earnings per share from continuing operations are expected to be between 30% and 35% lower than that of the prior year.

In March, Telkom had warned shareholders that it expected basic and headline earnings per share from continuing operations to be at least 90% and 25% lower than the previous year, respectively.

“It should be noted that Telkom’s results for the year ended 31 March 2011 will be restated to reflect the entire investment in the Multi-Links business as a discontinued operation,” it said in a statement.

The restated basic earnings per share from continuing operations for the year ended March 2011 is 481.2 cents per share, and the restated headline earnings per share from continuing operations is 484.8 cents per share.

On Friday, the group was dealt a blow when cabinet rejected a deal between the telecoms operator and Korean firm KT Corporation. KT Corp had agreed to take a 20% stake in Telkom.

Telkom expects to publish its results on 8 June 2012.

In late afternoon trade on Monday, shares in Telkom improved 0.95% to R21.20, having declined as much as 8% on Friday, its worst drop in eight years.

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Telkom lowers expected earnings