To view the PDF file, sign up for a MySharenet subscription.

TELKOM SA SOC LIMITED - Updated trading statement

Release Date: 29/05/2014 10:30
Code(s): TKG     PDF:  
Wrap Text
Updated trading statement

Telkom SA SOC Limited
(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 expenditure as a result of cost saving initiatives
    implemented; and
-   Lower depreciation as a result of the R12 billion impairment in the previous year.


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

Date: 29/05/2014 10:30:00 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.

Share This Story