News

SENS Releases 2014

  • Telkom SA SOC LimitedView PDF »
  • (Registration number 1991/005476/30)
  • JSE share code: TKG
  • ISIN: ZAE000044897
  • ("Telkom" or the "Group")

Updated trading statement

Shareholders of Telkom are referred to the trading statement released on the Stock Exchange News Service of the JSE Limited dated 18 March 2014 through which they were advised that the results to be reported on for the year ended 31 March 2014 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 year ended 31 March 2013 were restated as a result of the adoption of IAS 19R (the International Accounting Standard on accounting for employee benefits), the amendment to IAS 16 (the International Accounting Standard on accounting for property, plant and equipment) and as a result of the reclassification of iWayAfrica as a discontinued operation following the disposal thereof. BEPS from continuing operations for the 2013 financial year have been restated to indicate the loss of 2 282.6 cents per share and HEPS from continuing operations to a profit of 86.2 cents per share.

Basic earnings per share from continuing operations for the 2014 financial year are expected to be between 2,972 and 3,428 cents higher than the restated BEPS for the 2013 financial year. Headline earnings per share from continuing operations for the 2014 financial year are expected to be between 772 to 789 cents higher than the restated HEPS for the 2013 financial year.

The main drivers of the increase in earnings included in the 2014 financial year are:

  • The net curtailment gain recognised on the post retirement medical aid liability of R2 169 million and the associated tax benefit of R246 million;
  • The net positive impact of the decrease in mobile termination rates;
  • Lower selling, general and administrative cost as a result of cost saving initiatives implemented;
  • Lower depreciation as a result of the R12 billion impairment in the previous year; and
  • Lower bad debts.

The following items included in the 2013 financial year also contributed to the increase:

  • The R 12 billion non-cash impairment of assets;
  • The provision for the Competition Commission fines of R 592 million; and
  • The R 434 million relating to the cost of voluntary severance and early retirement packages;

Telkom will release its results for the year ended 31 March 2014 on or about 13 June 2014. This updated trading statement has neither been reviewed nor reported on by the Group's external auditors.

Pretoria

29 May 2014

Sponsor
The Standard Bank of South Africa Limited