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TKG - Telkom SA Limited - Trading statement and operational update Telkom SA Limited (Registration number 1991/005476/06) JSE share code: TKG ISIN: ZAE000044897 ("Telkom") Trading statement and operational update 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: - the recognition of a net loss of R950 million on the disposal of the Multi-Links foreign operation, mainly due to the cumulative amount of exchange differences previously recognised in equity, now recognised in profit and loss; and - the impairment of iWayAfrica of approximately R550 million. Other operational items contributing to the decrease include: - the EBITDA loss incurred by the mobile business of approximately R2.2 billion; - higher depreciation of approximately R670 million as a result of the review of the useful lives of existing network equipment as the Company invests to transform to a commercially led next generation network. 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. Johannesburg 30 March 2012 Sponsor: UBS South Africa (Pty) Ltd Date: 30/03/2012 13:59:03 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
