| Mon 12 Nov 2007, 11:00 | | TKG - Telkom SA Limited - Trading Statement |
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TKG
TKG
TKG - Telkom SA Limited - Trading Statement
Telkom SA Limited
(Registration number 1991/005476/06)
JSE and NYSE Share code TKG & ISIN ZAE000044897
("Telkom")
Trading statement
Telkom is currently finalising its reviewed interim financial results for the
six months ended September 30, 2007 which will be released on Monday November
19, 2007.
Further to previous cautions regarding our financial performance, shareholders
are advised that the basic earnings per share and headline earnings per share
are expected to be between 14% and 20% lower than the reviewed interim financial
results reported for the comparable prior period.
The earnings have been depressed by:
- An aggressive marketing initiative comprising the bundling of services at
discounted rates. This campaign has already resulted in increased traffic
on certain call types.
- Increased investment in materials and maintenance to improve the
reliability of the network and customer services.
- Higher depreciation, resulting from increased capital expenditure to
enhance capacity and capability within the network.
- Changes in the fair value of financial instruments arising mainly from a
stronger rand as at September 30, 2007.
The financial information on which this trading statement is based has not been
reviewed and reported on by Telkom`s auditors.
Pretoria
November 12, 2007
Sponsor
UBS South Africa (Pty) Limited
Special note regarding forward-looking statements
Many of the statements included in this announcement constitute or are based on
forward looking statements within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995, specifically Section 27A of the U.S. Securities
Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of
1934, as amended. All statements, other than statements of historical facts,
including, among others, statements regarding our future financial position and
plans, strategies, objectives, capital expenditures, projected costs and
anticipated cost savings and financing plans, as well as projected levels of
growth in the communications market, are forward looking statements. Forward
looking statements can generally be identified by the use of terminology such as
"may", "will", "should", "expect", "envisage", "intend", "plan", "project",
"estimate", "anticipate", "believe", "hope", "can", "is designed to" or similar
phrases, although the absence of such words does not necessarily mean that a
statement is not forward looking. These forward looking statements involve a
number of known and unknown risks, uncertainties and other factors that could
cause our actual results and outcomes to be materially different from historical
results or from any future results expressed or implied by such forward looking
statements. We caution you not to place undue reliance on these forward looking
statements. All written and oral forward looking statements attributable to us,
or persons acting on our behalf, are qualified in their entirety by these
cautionary statements. Moreover, unless we are required by law to update these
statements, we will not necessarily update any of these statements after the
date of our most recent annual report on Form 20-F filed with the US Securities
and Exchange Commission (SEC), either to conform them to actual results or to
changes in our expectations.
Telkom SA Limited filed an annual report on Form 20-F with the US SEC, for the
year ended March 31, 2007 on July, 17, 2007. This annual report includes a
detailed description of risk factors that may affect its business. For further
information you should refer to the Form 20-F and other filings with the US SEC,
which are available on Telkom`s investor relations website at
www.telkom.co.za/ir.
Date: 12/11/2007 11:00:01 Produced by the JSE SENS Department.
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