Photo by: Duane Daws
JSE-listed Telkom on Friday said it expected a decline in its half-year earnings for the period to September 30, owing to gains made in the prior corresponding period.
The group’s expected 20% contraction in headline earnings per share and basic earnings per share (Beps) for the six months was a result of the net curtailment gain of R2.2-billion recognised on the post retirement medical aid liability in the prior corresponding period.
However, excluding the reported gain, Beps for the 2015 interim reporting period would have been at least 20% higher than the reported Beps during the six months to September 30, 2013.
Telkom mainly attributed the hike to the mobile termination rates allowing reduced payments to other operators and lower asset writedowns.
The company would publish its first-half results on November 17.
Meanwhile, Telkom said talks with MTN relating to outsourcing the fixed-line operator’s radio access network and extending its existing roaming agreement to include bilateral roaming, continued.