Shareholders of Telkom are referred to the trading statement released on the Stock Exchange News Service of the JSE Limited dated on 8 October 2013 whereby they were advised that the results to be reported on for the six months ended 30 September 2013 would be at least 20% higher than those of the prior corresponding period.
Basic earnings per share ("BEPS") and headline earnings per share ("HEPS") for the six months ended 30 September 2012 were restated as a result of the adoption of IAS 19R (the International Accounting Standard on accounting for employee benefits) and the amendment to IAS 16 (the International Accounting Standard on accounting for property, plant and equipment). BEPS was restated to 17.8 cents per share from 30.2 cents per share and HEPS to 24.9 cents per from 37.2 cents per share.
BEPS is expected to be 546 to 550 cents per share higher than the restated BEPS for the prior corresponding period and HEPS is expected to be 622 to 628 cents per share higher than the restated HEPS for the prior corresponding period. The increase in BEPS and HEPS is mainly as a result of the following:
Excluding the impact of the non-cash curtailment and settlement gain on the results for the six month ended 30 September 2013 and the Competition Commission fine on the results for the six month ended 30 September 2012, BEPS is expected to be 37 to 56 cents per share higher than the restated BEPS for the prior corresponding period and HEPS is expected to be 113 to133 cents per share higher than the restated HEPS for the prior corresponding period.
Depreciation, amortisation, impairments and write offs reflects a year on year increase of approximately R125 million despite a depreciation saving relating to the R12 billion impairment to the asset base in March 2013. The saving in depreciation has been offset by accelerated depreciation emanating from the review of the useful lives of drop wires installed at customer premises and the impairment of spare parts and service equipment reclassified from inventory to property plant and equipment in terms of an amendment to IAS 16 of International Financial Reporting Standards.
Telkom will release its results for the six months ended 30 September 2013 on 18 November 2013. This updated trading statement has neither been reviewed nor reported on by the Group's external auditors.
25 October 2013
The Standard Bank of South Africa Limited