JSE-listed Telkom on Friday said it expected its headline earnings per share (HEPS) and basic earnings per share (BEPS) for the year ended March 31, to have declined by between 15% and 25% year-on-year.
HEPS are expected to be between 541.1c and 611.1c, representing a 110c to 180c drop on the 721.1c reported in the 2017 financial year, while BEPS are expected to decrease to between 554.1c and 628c in the 2018 financial year, compared with the BEPS of 738.8c achieved the year before.
The information and communication technology group attributed the decrease to a significant increase in its effective tax rate, from the 15.2% in 2017 to slightly below the South African corporate tax rate, as well as higher labour costs driven by both inflationary and market-related adjustments.
The prior year’s reported earnings were impacted on by voluntary severance packages and voluntarily early retirement packages of R66-million, with a related tax benefit of R13-million.
Telkom plans to publish its financial results for the year to March 31 on May 28.