{"id":15045,"date":"2012-06-11T15:31:24","date_gmt":"2012-06-11T13:31:24","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=15045"},"modified":"2012-06-12T12:25:31","modified_gmt":"2012-06-12T10:25:31","slug":"telkom-shares-slump-below-r20","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/telecommunications\/15045\/telkom-shares-slump-below-r20\/","title":{"rendered":"Telkom shares slump below R20"},"content":{"rendered":"

Telkom<\/a> shares dropped below R20 for the first time in almost a decade on Monday (11 June), following disappointing full-year results and no clear guidance on a way forward, according to a local trader.<\/p>\n

In late afternoon trade on the JSE<\/a>, shares in Telkom moved 88 cents or 4.33% lower to R19.42, having lost almost 45% of its share price from a year ago, trading at R36 over the same period in June 2011.<\/p>\n

The All Share Index traded 0.38% higher to 33,793 points.<\/p>\n

On Friday Telkom on Friday reported a decline in operating revenue to R33.1 billion,\u00a0for the year ended March 2012.<\/p>\n

Headline profit for the year fell 32.8% to R1.658 billion, while profit after tax for the year declined 93% to R179 million.<\/p>\n

Earnings before interest, taxes, depreciation, and amortization (EBITDA)<\/a> of R8.5 billion, declined 8.8% and group EBITDA margin decreased to 25.8% from 28.1%.<\/p>\n

Headline earnings per share decreased 33.0% to 324.7 cents per share and basic earnings per share decreased 97.8% to 10.4 cents.<\/p>\n

The group decided against\u00a0a dividend declaration in respect of the financial year
\nended 31 March 2012.<\/p>\n

\u201cThe fact that the group failed to pay any dividends, and with no clear guidance going forward,\u201d has led many investors to look elsewhere,\u201d a dealer said.<\/p>\n

Telkom\u2019s mobile arm 8ta, achieved revenue of R1.200 billion and an EBITDA loss before inter-segmental eliminations of R2.425 billion for the year ended 31 March 2012. The group is not expecting to break even for several years yet, while government recently blocked a potential R3.3 billion deal with Korea based KT Corp<\/a>, who was hoping for a 20% stake in Telkom.<\/p>\n

Related articles<\/strong><\/p>\n

Telkom reports 33% fall in headline profit<\/a><\/strong><\/p>\n

KT offer too low for Telkom\u2019s needs: Pule<\/a><\/strong><\/p>\n

KT Corp block horrendously, stupendously, horrifically bad<\/a><\/strong><\/p>\n

Telkom deal with KT Corp not off the table: PIC<\/a><\/strong><\/p>\n

Telkom shares tank on KT Corp deal block<\/a><\/strong><\/p>\n

Telkom, Korea Telecom transaction not going ahead<\/a><\/strong><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Telkom shares dropped below R20 for the first time on Monday amid no clear guidance going forward.<\/p>\n","protected":false},"author":9,"featured_media":6209,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34,21],"tags":[407,26,65],"class_list":["post-15045","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mobile","category-telecommunications","tag-8ta","tag-headline","tag-telkom"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/15045","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=15045"}],"version-history":[{"count":7,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/15045\/revisions"}],"predecessor-version":[{"id":15047,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/15045\/revisions\/15047"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/6209"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=15045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=15045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=15045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}