JSE-listed Telkom on Wednesday said it expected its reported basic earnings per share (BEPS) and headline earnings per share (HEPS) for the six months ended September 30 to increase by more than 20%.

HEPS is expected to increase to 186.1c to 199.4c apiece, a hike of between 40% and 50%, while BEPS is expected to increase by between 45% and 55% to between 190.8c and 204c during the first half of the year.

The company attributed the anticipated increase in earnings to improved revenue and earnings before interest, taxes, depreciation and amortisation performance.

“Growth in earnings has also been positively impacted by lower depreciation after asset impairments recognised in the 2023 financial year. This has been partially offset by higher net finance charges in the first half of the 2024 financial year, as well as the nonrecurrence of a R102-million gain on foreign exchange and fair value movements recognised in the first half of the 2023 financial year,” Telkom said in a trading update.

Total depreciation, amortisation and write-offs decreased by about 20% from R3.55-billion in the prior period and net finance charges increased by about 50% from R655-million in the prior period, largely owing to lending rate increases, as well as a higher net debt balance.

The half-year results will be published November 21.

Meanwhile, the group restated its HEPS for the period ended September 30, 2022.

“On September 30, 2022, the group correctly calculated and accounted for tax in the group statement of profit or loss and other comprehensive income. However, the group incorrectly adjusted for the headline earnings, relating to the profit on disposal and impairment of property, plant and equipment and intangible assets. This led to a R21-million overstatement of headline earnings and a 4.3c overstatement of HEPS for the period”.