Telkom points to further earnings pain

Telkom advises that it expects headline earnings per share from continuing operations for the six months ended September 2012, to be between 78% and 83% lower than the comparative period.

Headline earnings per share from continuing operations for the six months ended September 2011 decreased by 35.5% to 191.7 cents.

Operating revenue for the period in 2011 declined to R16.4 billion, while basic earnings per share decreased 70.8%, to 85.2 cents per share.

Basic earnings per share from continuing operations for the six months ended September 2012 are expected to be between 62% and 67% lower than that of the prior
period, it said.

Telkom has seen its share price plummet almost 50% in 2012, from a high of R29.75 in early February, to a close of R16.50 on the JSE on Tuesday (13 November), giving the group market cap of R8.59 billion.

Also on Monday, Telkom announced the appointment of several non-executive directors including Jabulane Albert Mabuza, previously an MD of Southern Sun Gaming, GCEO of Tsogo Sun and chairman of the Board of South African Tourism.

Mabuza was most recently deputy chairman of Tsogo Sun Holdings and the president of the Business Unity South Africa (BUSA). He also serves on the boards of ACE Insurance, Eglin Investments, Hydrop Investments, Kuncedzana Investments Holdings, Lexshell Investments and other boards.

Kholeka Mzondeki has also been appointed to the board. She previously served as CFO of Mintek and Masana Petroleum Solutions, while other board memberships and audit committee positions include Reunert, Sentula Mining and Bauba Platinum.

Mzondeki was also appointed as a member of the Telkom Audit Committee.

“Shareholders are further advised that these appointments bring the number of directors to eight, which is the minimum requirement of the Memorandum of Incorporation. The board will also meet in due course to appoint a new chairman and make appointments to board sub-committees where necessary,” Telkom said.

Telkom´s interim results for the period ended September 2012 will be released on about 19 November.

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Telkom points to further earnings pain