TELKOM SA SOC LIMITED - Trading Statement

Trading Statement

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

Trading statement
In terms of paragraph 3.4(b) of the Listings Requirements of
the JSE Limited ("JSE"), 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 prior
corresponding period.

The interim results for the period ended 30 September 2015 to
be reported on include an item that do not form part of the
results from normal business operations and as such have been
excluded to present a “normalised” view of underlying business
performance.

Accordingly, shareholders are advised that reported and
normalised earnings for the period ended 30 September 2015 are
expected to differ from the prior corresponding period as
indicated below:


                 30 September
                     2014
                 As previously                30 September 2015
                   reported                      Expectation
                  (cents per
                    share)
Basic earnings
per share
Reported             217.4          45%-65% lower       98cps - 141cps lower
Normalised           263.2          10%-30% higher      26cps - 79cps higher
Headline
earnings per
share
Reported             215.8          65%-85% lower       140cps - 183cps lower
                                                        13cps lower - 39cps
Normalised           261.7       5% lower -15% higher
                                                               higher



The results for the six months period ended 30 September 2015
to be reported on include the following significant item that
are not part of the results from normal business operations:
 ?   Provision for voluntary severance and retirement packages
     of approximately R1, 523 million (September 2014: R325
     million) affecting 3 108 (September 2014: 406) employees
     with a related tax benefit of approximately R446 million
     (September 2014: R91 million) in the current period.

The increase in normalised basic earnings for the six months
ended 30 September 2015 is mainly as a result of:

 -   Lower employee expenses due to lower headcount emanating
     from the voluntary severance and retirement packages in the
     prior financial year; and
 -   Higher profit on sale of properties.

This was partly offset by:

 -   Higher accelerated depreciation as we align our asset base
     to technology evolution and initiatives driving our
     strategic intent.

The primary reason for the higher increase in normalised basic
earnings per share (10% - 30% higher) when compared to
normalised headline earnings per share (5% lower - 15% higher)
is the higher gain on sale of assets in the current period,
which are excluded from the calculation of headline earnings
per share.

Telkom will release its results for the six months ended 30
September 2015 on or about Monday, 16 November 2015.
This updated trading statement has neither been reviewed nor
reported on by the Group's external auditors.


Centurion
3 November 2015
Sponsor
The Standard Bank of South Africa Limited

Special note regarding forward-looking statements
Many of the statements included in this document, as well as verbal statements that may be
made by us or by officers, directors or employees acting on our behalf, constitute or are
based on forward-looking statements.
All statements, other than statements of historical facts, including, among others, statements
regarding our convergence and other strategies, future financial position and plans,
objectives, capital expenditures, projected costs and anticipated cost savings and financing
plans, as well as projected levels of growth in the communications market, are forward-looking
statements.
These forward-looking statements involve a number of known and unknown risks, uncertainties
and other factors that could cause our actual results and outcomes to be materially different
from historical results or from any future results expressed or implied by such forward-
looking statements. Factors that could cause our actual results or outcomes to differ
materially from our expectations, include, but are not limited to those risks identified in
Telkom’s most recent annual report, which is available on Telkom’s website at
www.telkom.co.za/ir.
We caution you not to place undue reliance on these forward-looking statements. All written
and verbal forward-looking statements attributable to us, or persons acting on our behalf, are
qualified in their entirety by these cautionary statements. Moreover, unless we are required
by law to update these statements, we will not necessarily update any of these statements
after the date of this document, so that they conform either to the actual results or to
changes in our expectations.

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