| Fri 29 Oct 2010, 11:51 | | VOX - Vox Telecom Limited - Trading Statement |
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VOX
VOX
VOX - Vox Telecom Limited - Trading Statement
VOX TELECOM LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number: 1998/016433/06)
JSE Code: VOX ISIN Code: ZAE000097234
("Vox" or "the Company")
TRADING STATEMENT
In accordance with paragraph 3.4 (b) of the Listings Requirements of the JSE
Limited ("the JSE"), a listed company is required to publish a trading statement
as soon as it becomes aware, with a reasonable degree of certainty, that the
financial results for the next period to be reported on are likely to vary by
more than 20% from the previous corresponding period. Accordingly, shareholders
are advised that the Company expects to report a minimum basic loss per share
for the year ended 31 August 2010 of 60.94 cents per share (year ended 31 August
2009: 5.49 cents basic earnings per share). The Company expects to report
headline earnings per share between 6.18 cents and 6.80 cents per share (year
ended 31 August 2009: 6.18 cents headline earnings per share).
The expected basic loss per share will be as a result of impairments to goodwill
and intangible assets amounting to a minimum of R745 million. In terms of IFRS
the Company is required to assess at the end of each reporting period whether
there is any indication that an asset may be impaired. If any such indication
exists, the entity shall estimate the recoverable amount of the assets. Since
the last fiscal year, ICASA has proposed significant changes to wholesale
interconnection rates to be implemented via a glide path over a number of years.
The first drop in interconnection rates was implemented on 1 March 2010 and the
Company has made certain assumptions about future reductions in interconnection
rates based on previous statements by ICASA. As a result of these changes, the
Company has revalued the Least Cost Routing ("LCR") business based on certain
assumptions. In addition, the Company has also revalued certain consumer ISP
intangible assets based on expected future cash flows to be received through its
subsidiary @lantic Internet, which does not relate to changes in interconnect
rates. The net effect of this valuation process is that a portion of the
goodwill and intangible assets attributable to these cash generating units are
being impaired, the majority of which lies within the LCR business.
Headline earnings will not be impacted by the contemplated impairments to
goodwill and intangible assets.
When the Company is able to quantify the expected basic loss per share with a
greater degree of certainty, a further announcement containing such details will
be made.
The Company will provide a detailed analysis in its results announcement on SENS
with respect to the year ended 31 August 2010, which will be released by close
of business on 24 November 2010.
This trading statement has not been reviewed or reported on by the Company`s
external auditors.
Johannesburg
29 October 2010
Designated Adviser: Grindrod Bank Limited
Date: 29/10/2010 11:51:55 Produced by the JSE SENS Department.
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