Telkom expects improved FY17 earnings
JSE-listed Telkom expects to report improved earnings for the 12 months ended March 31, as the impact of voluntary severance and early retirement packages is reduced.
The company, which will release its financial results for the year on June 5, anticipates a year-on-year increase of between 110% and 130% in headline earnings per share (HEPS).
The reported basic earnings per share (BEPS) are expected to increase by between 60% and 80%.
“The prior year’s reported earnings were impacted by voluntary severance packages (VSPs) and voluntarily early retirement packages (VERPs) of R2.2-billion, with a related tax benefit of R517-million, while the current year impact is significantly lower at R66-million, with a related tax benefit of R13-million,” Telkom commented in a trading update to shareholders.
Excluding the impact of VSPs and VERPs and the related tax benefit, HEPS are expected to increase by between 0% and 20% during the 12 months under review, while BEPS are expected to be between 10% lower and 10% higher than the prior year.
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