{"id":24950,"date":"2012-10-24T13:01:52","date_gmt":"2012-10-24T11:01:52","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=24950"},"modified":"2012-10-24T13:36:15","modified_gmt":"2012-10-24T11:36:15","slug":"telkom-turned-around-says-pule","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/telecommunications\/24950\/telkom-turned-around-says-pule\/","title":{"rendered":"Telkom turned around says Pule"},"content":{"rendered":"

Minister of Communications Dina Pule<\/a> has\u00a0thanked the outgoing members of the Telkom<\/a> Board of directors “for their contribution in turning around Telkom” following the conclusion of the group’s AGM on Wednesday (24 October).<\/p>\n

Telkom chairperson Lazarus Zim<\/a>, Julia Hope<\/a> and Jackie Huntley<\/a> stepped down from the groups board on Wednesday. “The vacant board seats will be filled in due course,” the ministry of Communications said in a statement.<\/p>\n

Minister Pule also said\u00a0that a decision over the future of Telkom is \u00a0still ‘within the Cabinet process’ more than a month after the Department of Communications<\/a> handed over its proposed options for the group.<\/p>\n

Having blocked a deal between Telkom and Korea based\u00a0KT Corp<\/a>\u00a0in June, Cabinet asked\u00a0Dina Pule, to report back to it about all the options that were available for Telkom, in three months.<\/p>\n

That deadline passed at the end of August, before the\u00a0DoC\u00a0said it had finally presented its list of options to cabinet in mid September.<\/p>\n

The delays have led to much uncertainty from investors who speculated that Telkom may be nationalised, while other market rumours include Telkom merging its mobile operation \u00a08ta<\/a>, with Cell C<\/a>.<\/p>\n

\u201cWe are certain that the Telkom will overcome the challenges it is facing. The most immediate task of the Telkom leadership is to successfully deal with the anti-competitive claims against it. Telkom has to help the country competitiveness by upgrading its infrastructure to deliver high speed broadband for the benefit of our economy\u201d said minister Pule.<\/p>\n

\u201cTelkom is well positioned to play its part in the socio-economic development of the country while enjoying a fruitful commercial existence,\u201d she said.<\/p>\n

Earnings shock<\/strong><\/p>\n

In September, Telkom advised that its headline earnings per share from continuing operations for the six months ending September 2012 are expected to be at least 65% lower than the prior comparative period.<\/p>\n

HEPS from continuing operations for the six months ended September 2011 stood at 191.7 cents, 35.5% lower than in 2010.<\/p>\n

Telkom advised shareholders that basic earnings per share from continuing operations for the six months ending 30 September 2012 is expected to be at least 45% lower than in 2011.<\/p>\n

\u201cThe lower earnings are mainly attributable to an increase in the provision for Competition Commission fines relating to transgressions of the company dating back approximately 10 years.\u201d<\/p>\n

\u201cThe operational performance for the period up to 31 August 2012 has been further characterised by flat revenue and operating cost that escalated just below inflation,\u201d it said in a statement on 20 September.<\/p>\n

For the six months ending 30 September 2011, Telkom reported operating revenue down 3.2% to R16.4 billion, while basic earnings per share decreased 70.8% to 85.2 cents per share.<\/p>\n

In August, the Competition Tribunal imposed penalty of R449 million on Telkom in its case against the South African Value added Networks Services (SAVA).<\/p>\n

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

Delays putting Telkom behind competitors<\/strong><\/a><\/p>\n

Telkom future in cabinet hands<\/strong><\/a><\/p>\n

Telkom options not tabled before Cabinet<\/strong><\/a><\/p>\n

Telkom shares off 5.3%, awaits fate<\/strong><\/a><\/p>\n

Telkom delivers earnings warning<\/strong><\/a><\/p>\n

Telkom rallies 5% on nationalisation rumour<\/strong><\/a><\/p>\n

Telkom to be sold at R24 a share, nationalised: analyst<\/strong><\/a><\/p>\n

 <\/p>\n

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

The DoC has thanked the outgoing members of the Telkom Board of directors “for their contribution in turning around Telkom” following the conclusion of the group’s AGM on Wednesday.<\/p>\n","protected":false},"author":9,"featured_media":21826,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[407,42,1087,1083,26,4087,65],"class_list":["post-24950","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-telecommunications","tag-8ta","tag-cell-c","tag-department-of-communications","tag-dina-pule","tag-headline","tag-lazarus-zim","tag-telkom"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/24950","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=24950"}],"version-history":[{"count":10,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/24950\/revisions"}],"predecessor-version":[{"id":24957,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/24950\/revisions\/24957"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/21826"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=24950"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=24950"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=24950"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}