Telkom’s share price rose 7.46% after the company said it expected an increase in earnings for the six months to September. The share ended the day at R62.37. Three years ago, Telkom made a strategic decision to prop up its slipping market share and streamline its cost structure. Telkom said it expected normalised headline earnings per share to rise 10%-30% to between R3.086 and R3.647. Normalised earnings per share would increase as much as 20% to between R3.211 and R3.852. Normalised earnings would exclude the effect of voluntary early retirement packages and voluntary severance packages offered to employees during the corresponding period in 2015. These packages cost Telkom R1.5bn, with a tax benefit of R446m. During this period 3,108 employees took packages. Including the once-off costs, Telkom’s reported basic earnings per share were expected to surge as much as 225% to between R3.367 and R3.588. Reported headline earnings per share were expected to increase 370%-390% from R2.8...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.