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SENS Releases 2007

  • Telkom SA LimitedView PDF »
  • (Registration number 1991/005476/06)
  • ISIN: ZAE000044897
  • JSE and NYSE share code: TKG
  • ("Telkom" or "the Company")

Trading statement

Telkom is currently finalising its reviewed interim financial results for the six months ended September 30, 2007 which will be released on Monday November 19, 2007.

Further to previous cautions regarding our financial performance, shareholders are advised that the basic earnings per share and headline earnings per share are expected to be between 14% and 20% lower than the reviewed interim financial results reported for the comparable prior period.

The earnings have been depressed by:

  • An aggressive marketing initiative comprising the bundling of services at discounted rates. This campaign has already resulted in increased traffic on certain call types.
  • Increased investment in materials and maintenance to improve the reliability of the network and customer services.
  • Higher depreciation, resulting from increased capital expenditure to enhance capacity and capability within the network.
  • Changes in the fair value of financial instruments arising mainly from a stronger rand as at September 30, 2007.

The financial information on which this trading statement is based has not been reviewed and reported on by Telkom's auditors.

Pretoria
November 12, 2007

Sponsor
UBS South Africa (Pty) Limited