Shares in Telkom climbed more than 7% on the JSE on Thursday after the telecommunications group said its adjusted headline earnings per share (Heps) are expected to rise by as much as 60%.
In a trading update for the six months to end-September 2024, Telkom said it has seen “continued strong demand” for its data products, with double-digit growth in revenue from mobile and fibre data services. However, this will be offset by a continued decline in fixed voice and legacy data products, it warned.
“The group anticipates reporting improved financial results from total operations for the first half of the 2025 financial year, before a R451-million after-tax charge relating to the termination of Telkom’s obligation of the defined benefit within the Telkom Retirement Fund and the consequential derecognition of the corresponding funding plan asset recognised under IFRS accounting standards.”
Reported Heps will be flat, in the range of -5% to 5% year on year, Telkom said. Adjusted Heps growth of between 50% and 60% “illustrate the underlying performance of the group’s operations, as internally managed, to assess the actual trading performance”.
“This adjusted financial information is the responsibility of the board, prepared for illustrative purposes, and because of its nature may not fairly present the financial position, changes in equity, results of operations or cash flows of the group as required for reporting purposes.”
Telkom will publish its interim results on 18 November. TechCentral will bring its readers full coverage on the day, including an interview with CEO Serame Taukobong. – © 2024 NewsCentral Media
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