Telkom has issued a trading statement notifying shareholders that it expects its full year headline earnings to decrease by as much as 50%.<\/p>\n
According to the telco group,\u00a0the reason for such a big dip is due to a R2.2 billion payout to employees who took a voluntary early retirement package or voluntary severance package in the past financial year.<\/p>\n
The R2.2 billion is not considered a part of normal business operations and carries a tax impact of R500 million. Excluding the package payouts, headline earnings\u00a0will reflect a 10%-20% increase, Telkom said.<\/p>\n
The group issued the following notice:<\/p>\n
| <\/th>\n | 31 March 2015 (cents)<\/th>\n | 31 March 2016 (Expected – %)<\/th>\n | 31 March 2016 (Expected – cents)<\/th>\n<\/tr>\n |
|---|---|---|---|
| Basic earnings per share (reported)<\/td>\n | 607.7<\/td>\n | 20%-30% lower<\/td>\n | 122 to 183 cps lower<\/td>\n<\/tr>\n |
| Basic earnings per share (normalised)<\/td>\n | 584.1<\/td>\n | 30%-40% higher<\/td>\n | 175 to 233 cps higher<\/td>\n<\/tr>\n |
| Headline\u00a0earnings per share (reported)<\/td>\n | 597.9<\/td>\n | 40%-50% lower<\/td>\n | 239 to 299 cps lower<\/td>\n<\/tr>\n |
| Headline\u00a0earnings per share (normalised)<\/td>\n | 574.3<\/td>\n | 10%-20% higher<\/td>\n | 58 to 115 cps higher<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n The main difference between BEPS and HEPS is increased profit from the sale of property recorded during the twelve months to 31 March 2016, Telkom said.<\/p>\n Telkom has engaged in as many as four separate labour processes over the past few years in a bid to reduce costs at the company. The process has seen as many as 7,350 job cuts at the group since 2013.<\/p>\n The company\u2019s workforce was at 13,895 as of 29 January, according to a Bloomberg report. Telkom\u2019s staff count in 2015 was put at 18,333 \u2013 down from 19,197 in 2014, and 21,209 in 2013.<\/p>\n More on Telkom<\/h3>\nTelkom has lost nearly 10,000 workers over the past 10 years<\/a><\/strong><\/p>\n Telkom \u2018waging war\u2019 against its employees: union<\/a><\/strong><\/p>\n Telkom in mass voluntary retrenchment offer to its workforce<\/strong><\/a><\/p>\n |