Wait-and-see for Telkom
Telkom will release its financial results for the six months ended 30 September 2024 (H1 25) in the coming days, with headline earnings per share seeing either a decrease or increase.
In a trading update, the group said it is finalising its interim results for H1 25, which are scheduled to be released on the JSE on or about 18 November 2024.
“Group revenue growth from continuing operations is expected to be within guidance compared to the six months ended 30 September 2023 (H1 24), with strong demand for our compelling data propositions reflecting double-digit growth in mobile data and fibre-related data services, offset by the ongoing fixed voice and legacy data erosion,” said Telkom.
“The group anticipates reporting improved financial results from total operations for H1 FY2025 before a R451 million after-tax charges relating to the termination of Telkom’s obligation of the defined benefit within the Telkom Retirement Fund and the consequential derecognition of the corresponding funding plan asset recognised under IFRS Accounting Standards.”
These, along with restructuring costs, are found in the group’s adjusted financial results.
The group’s adjusted headline earnings per share growth is expected to increase between 50% and 60% to 292.5 and 312 cents per share.
However, regarding the reported figures, the group expects headline earnings per share to either decrease by 5% or increase by 5% from 195 cents in H1 24 to between 185.2 and 204.8 cents in H1 25.
Although headline earnings per share could decrease, the group is still in a much better financial position than it was in 2023, when it declared a R10 billion loss.
The group previously said it wanted to issue its first year-end dividend during the 2025 financial year after sufficiently funding capex and strengthening its balance sheet.
Telkom’s balance sheet is set to get a boost following the ongoing sale of its mast and towers business, which is housed inside Swiftnet, for R6.75 billion.
The group’s expected financial results can be found below:
| Total Operations (Continuing and Discounted*) | H1 24 | H1 25 | % Change |
| Basic Earnings per share (Reported) | 200.2 | 210.2-230.2 | 5% to 15% |
| Basic Earnings Per Share (Adjusted) | 200.2 | 320.3-340.3 | 60% to 70% |
| Headline Earnings per share (Reported) | 195.0 | 185.2-204.8 | -5% to 5% |
| Headline Earnings per share (Adjusted) | 195.0 | 292.5 – 312.0 | 50% to 60% |
| Weighted average number of shares in issue | 486 099 500 | 490 870 665 | – |
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