Shares in Telkom advanced nearly 3.5% on Thursday, after the group noted that it expects to report a jump in earnings for the twelve months ended March 2017.<\/p>\n
The company said that the prior year\u2019s reported earnings were impacted by voluntary severance packages (VSPs) and voluntarily early retirement packages (VERPs) of R2.193 million with a related tax benefit of R517 million while the current year impact is significantly lower at R66 million, with a related tax benefit of R13 million.<\/p>\n
As a result, the reported headline earnings per share (HEPS) is expected to increase between 110% and 130% when compared to the prior year.<\/p>\n
The reported basic earnings per share (BEPS) is expected to increase between 60% and 80%, Telkom said.<\/p>\n
Excluding the impact of VSPs and VERPs and the related tax benefit, HEPS is expected to
\nincrease between 0% and 20% and BEPS is expected to be between 10% lower and 10%
\nhigher than the prior year, the telco said.<\/p>\n
Headline earnings are expected to be between 363 cents to 429 cents higher than 330 cents in 2016, while excluding VSP and VERP, that figure is expected to be between zero cents per share and 131 cents per share higher than 657.9 cents per share reported in the prior year, Telkom said.<\/p>\n
Telkom’s earnings include the performance of BCX<\/a>, and are expected to be published on 5 June.<\/p>\n Shares in the group advanced 3.42% to R78.38 by close of play on the JSE on Thursday.<\/p>\n
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