Telkom’s latest financial results

Telkom today published a JSE trading statement, and for the sake of completeness the full statement is provided below:

Telkom is currently finalising its results for the year ended 31 March 2010, which are expected to be released on or about Monday, 21 June 2010.

In South Africa, EBITDA continues to be impacted by increases in operating costs which outstrip revenue growth.

In Nigeria, economic and competitive conditions were tough. In addition, inventory write downs and subsidies were higher and accordingly, Multi-Links Nigeria will report EBITDA losses higher than that of the previous year. The level of inventories and inventory commitments were abnormally high given the market circumstances of Nigeria and have been normalised.

As previously reported we successfully concluded the sale and unbundling of our 50% stake in Vodacom during the year which resulted in the following unusual items impacting earnings for the year:

   1. profit on the sale of our 15% share in Vodacom of R18,535 million;   2. gain on the unbundling of our 35% share in Vodacom of R25, 688 million;   3. capital gains tax on the sale and unbundling of our Vodacom shares of R1,353 million;   4. secondary taxation on companies (‘STC’) on the special dividend relating to the sale of Vodacom of R977 million;   5. reversal of the deferred tax asset relating to capital gains tax on the Vodacom sale of R421 million;   6. compensation expense recognised in terms of IFRS2 relating to the amendment of the Telkom Conditional Share Plan of R946 million;

   7. fair value loss on the mark to market valuation of Vodacom shares held at 31 March 2010, of approximately R15 million;

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