{"id":842522,"date":"2025-11-10T12:30:00","date_gmt":"2025-11-10T10:30:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=842522"},"modified":"2025-11-10T12:15:07","modified_gmt":"2025-11-10T10:15:07","slug":"the-state-owned-company-seeing-90-growth-in-one-year","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/telecommunications\/842522\/the-state-owned-company-seeing-90-growth-in-one-year\/","title":{"rendered":"The state-owned company seeing 90% growth in one year"},"content":{"rendered":"\n

Telkom is expecting a massive rise in earnings in the first half of the 2026 financial year, with the partly state-owned company seeing its share price nearly double in the span of 12 months. <\/p>\n\n\n\n

Telkom remains a state-owned company, with the government owning 40% of the company. The Public Investment Corporation (PIC) also holds a 10% stake in a telco company, even if the ownership technically lies with the PIC\u2019s clients. <\/p>\n\n\n\n

Its strong performance has seen its share price rise dramatically over the last year, with growth of 89% to around R50 per share. <\/p>\n\n\n\n

The latest trading statement for the six months ending 30 September highlights the company’s strong performance. <\/p>\n\n\n\n

In a trading statement, Telkom said that basic earnings per share for continuing operations are expected to increase by between 80% and 90%, a range from 311.8 to 329.1 cents per share.\u00a0<\/p>\n\n\n\n

Headline earnings per share from continuing operations are also expected to double, rising by between 105% and 115% to a range of 301.1 and 315.8 cents per share.\u00a0<\/p>\n\n\n\n

However, when looking at total operations, basic earnings per share should rise by between\u00a043% and 51%.<\/p>\n\n\n\n

Total headline earnings per share are expected to rise by between 57% and 65% to the same range seen in the continuing operations results.\u00a0<\/p>\n\n\n\n

Telkom stated that the increase in basic and headline earnings per share from continuing operations was primarily due to one-time costs related to the Telkom Retirement Fund (TRF). <\/p>\n\n\n\n

Over the prior period, the group recorded an after-tax loss of R451 million due to the derecognition of the TRF. It also saw an after-tax impact of R117 million relating to restructuring costs.\u00a0<\/p>\n\n\n\n

The group also said that underlying operating performance and focused structural cost containment have contributed to the earnings growth. <\/p>\n\n\n\n

Total operations included Swiftnet in the prior period, which was disclosed as a discontinued operation, with the R6.5 billion sale concluded during FY2025.\u00a0<\/p>\n\n\n\n

The difference between basic and headline earnings per share relates to the exclusion of the net profit on disposal of property, plant & equipment and intangible assets. <\/p>\n\n\n\n

This was, however, offset by the net write-offs on property, plant & equipment and intangible assets.<\/p>\n\n\n\n

The official interim results for the six months ending 30 September 2025 are due on 18 November 2025. <\/p>\n\n\n\n

Continuing operations<\/th>Results for the six months ended 30 Sept 2024 (cents)<\/th>Estimated earnings per share range (cents) \u2013 30 Sept 2025<\/th>Estimated increase (%)<\/th><\/tr><\/thead>
BEPS<\/td>173.2<\/td>311.8 \u2013 329.1<\/td>80% \u2013 90%<\/td><\/tr>
HEPS<\/td>146.9<\/td>301.1 \u2013 315.8<\/td>105% \u2013 115%<\/td><\/tr>
Weighted average number of ordinary shares<\/td>490 870 665<\/td>492 453 984<\/td>\u2014<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n
Total operations<\/th>Results for the six months ended 30 Sept 2024 (cents)<\/th>Estimated earnings per share range (cents) \u2013 30 Sept 2025<\/th>Estimated increase (%)<\/th><\/tr><\/thead>
BEPS<\/td>217.6<\/td>311.8 \u2013 329.1<\/td>43% \u2013 51%<\/td><\/tr>
HEPS<\/td>191.5<\/td>301.1 \u2013 315.8<\/td>57% \u2013 65%<\/td><\/tr>
Weighted average number of ordinary shares<\/td>490 870 665<\/td>492 453 984<\/td>\u2014<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n
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Telkom Share Price<\/figcaption><\/figure><\/div>\n\n\n
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<\/p>\n","protected":false},"excerpt":{"rendered":"

Telkom is expecting another large rise in earnings, with the company’s share price growing by 90% over the last year. <\/p>\n","protected":false},"author":95,"featured_media":842528,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[65],"class_list":["post-842522","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-telecommunications","tag-telkom"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/842522","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\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=842522"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/842522\/revisions"}],"predecessor-version":[{"id":842556,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/842522\/revisions\/842556"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/842528"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=842522"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=842522"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=842522"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}