Telkom results restated to include investment

The restated basic earnings per share from continuing operations for the year ended 31 March 2011 are 481.2 cents per share and the restated headline earnings per share from continuing operations are 484.8 cents per share.

Telkom added that basic earnings per share from continuing operations for the year ending 31 March 2012 are expected to be at least 90% lower than the prior year.

The decrease is mainly attributable to the following once off items that will be included:

• The recognition of a net loss of R950m on the disposal of the Multi-Links foreign operation, mainly due to the cumulative amount of exchange differences previously recognised in equity, now recognised in profit and loss; and
  
  
• The impairment of iWayAfrica of approximately R550m.

Other operational items contributing to the decrease include:

• The EBITDA loss incurred by the mobile business of approximately R2.2bn;
  
• Higher depreciation of approximately R670m as a result of the review of the useful lives of existing network equipment as the Company invests to transform to a commercially led next generation network.

"These items will be partially offset by lower employee expenditure as R739m was spent on voluntary employee severance packages in the prior year."

Headline earnings per share from continuing operations for the year ending 31 March 2012 are expected to be at least 25% lower than the prior year. The net loss on disposal of Multi-Links and iWayAfrica impairment do not impact headline earnings.

"Telkom will provide an updated trading statement in terms of the JSE Listings Requirements once there is reasonable certainty within a 20% range of the results when compared to the previous year."

Telkom anticipates releasing its results for the year ending 31 March 2012 on or about 11 June 2012.