Telkom expects higher year-end earnings
JSE-listed Telkom expected earnings for the year to March 2014 to jump as the impact of net curtailment gains, lower mobile termination rates (MTRs) and cost-saving initiatives kick in.
Headline earnings per share (Heps) from continuing operations for the 12 months to March 2014 were expected to be between 772c and 789c higher than the restated Heps of 86.2c reported in the 2013 financial year.
Basic earnings a share from continuing operations for the 2014 financial year were expected to be between 2 972c and 3 428c higher than the restated basic loss a share of 2 282.6c the year before.
This was driven by net curtailment gain recognised on the post-retirement medical aid liability of R2.16-billion and the associated tax benefit of R246-million; the net positive impact of the decrease in MTRs; lower selling, general and administrative expenditure as a result of cost-saving initiatives implemented; and lower depreciation as a result of the R12-billion noncash impairment of assets in the previous year.
Further, this year, no provision would be required for the R592-million Competition Commission fines penalty and the R434-million incurred from voluntary severance and early retirement packages reported in 2013.
Telkom planned to publish the financial results for the year ended March 2014 on June 13.
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