Telkom on Tuesday told shareholders that it expects its headline and basic earnings per share to be at least 20% higher in the six-month period ended 30 September 2013 compared to the same period a year ago.
However, the telecommunications operator noted that the results for the comparable period in 2012 were negatively affected by a provision for a R389m fine imposed on it by the Competition Commission. This will have the effect of distorting year-on-year earnings growth.
JSE-listed companies are required to tell shareholders as soon as they become “reasonably certain” that the financial result for a period to be reported on will differ by at least 20% compared to the correspondent prior period.
“The results for the period to be reported on will be positively impacted by lower finance charges and a review of the underlying assumptions for the determination of post-retirement benefits,” Telkom told shareholders.
“The lower finance charges relate to foreign exchange and fair value gains following the weakening of the rand against major currencies.”
Telkom is expected to publish its interim results on 18 November. It said an updated trading statement, providing more specific guidance, will be released closer to that date.
The company’s share price was trading up by nearly 4% in early afternoon trading on the JSE. The share had already risen by more than 5% on Monday following publication by telecoms regulator Icasa of draft termination rate regulations that favour it and Cell C over rivals MTN and Vodacom.
The share touched a fresh 52-week high of R27,99 earlier on Tuesday. — (c) 2013 NewsCentral Media