In terms of paragraph 3.4(b) of the JSE Listings Requirements, companies 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.
It should be noted that Telkom's results for the year ended 31 March 2011 will be restated to reflect the entire investment in the Multi-Links business as a discontinued operation. The restated basic earnings per share from continuing operations for the year ended 31 March 2011 is 481.2 cents per share and the restated headline earnings per share from continuing operations is 484.8 cents per share.
Basic earnings per share from continuing operations for the year ending 31 March 2012 are expected to be at least 90% lower than the prior year.
The decrease is mainly attributable to the following once off items that will be included:
Other operational items contributing to the decrease include:
These items will be partially offset by lower employee expenditure as R739 million was spent on voluntary employee severance packages in the prior year.
Headline earnings per share from continuing operations for the year ending 31 March 2012 are expected to be at least 25% lower than the prior year. The net loss on disposal of Multi-Links and iWayAfrica impairment do not impact headline earnings.
Telkom will provide an updated trading statement in terms of the JSE Listings Requirements once there is reasonable certainty within a 20% range of the results when compared to the previous year.
Telkom anticipates releasing its results for the year ending 31 March 2012 on or about 11 June 2012.
This trading statement has neither been reviewed nor reported on by the company's external auditors.
30 March 2012