In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Securities Exchange South Africa, issuers are required to publish a trading statement as soon as they become reasonably certain that the financial results for the period to be reported on next will differ by at least 20% from those of the previous corresponding period.
Telkom is currently finalising its results for the year ending 31 March 2005, which are expected to be released on 6 June 2005. Telkom accordingly advises that it expects an increase of between 35% and 55% in basic earnings per share and headline earnings per share for the year ending 31 March 2005 from the year ended 31 March 2004. The above results have been impacted by restructuring expenses and extending the useful lives of certain assets.
The main difference between basic earnings and headline earnings is the impairment and write-offs relating to property, plant and equipment. This trading statement has neither been reviewed nor reported on by the Company's external auditors.
10 May 2005