There’s more bad news for Telkom shareholders this week. The partially privatised JSE-listed telecommunications company warned on Monday that it expects its headline earnings per share to be at least 20% lower than the 324,7c it reported a year ago.
Telkom is under pressure as consumers increasingly switch to mobile alternatives over fixed lines and as it attempts to build South Africa’s fourth mobile phone network in what analysts say is a fast-maturing market.
In terms of the JSE’s listing requirements, companies are required to publish a trading statement as soon as they become reasonably certain that their financial results for the period to be reported on next will differ by at least 20% from those of the previous corresponding period.
Telkom’s year-end is 31 March and the company is expected to present the full year numbers in mid-June.
“An updated detailed trading statement will be released prior to the announcement of the results for the year,” Telkom says. “This statement will confirm a more specific range for headline and basic earnings per share.”
The company’s board recently appointed former Vodacom group chief operating officer Sipho Maseko as its new CEO, taking the reins from Nombulelo Moholi, who tendered her resignation late last year. Former Telkom Business MD Brian Armstrong has been named as Telkom group chief operating officer, a newly created position.
Telkom’s share price was trading down by 2,9% shortly after warning on Monday of the expected fall in earnings. At the time of writing, it was trading at R14,25, off the day’s low of R14 and not far off its all-time low of R13,70.
The share price has declined by 37,5% in the past 12 months, giving it a market capitalisation of R7,4bn. — (c) 2013 NewsCentral Media
