| Wed 17 Nov 2010, 10:57 | | 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: ZAE 000097234
("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.
Shareholders are referred to the previous trading statement released on the
Securities Exchange News Service ("SENS") on 29 October 2010 and informed that
the Company is now able to quantify the expected basic loss per share for the
period ended 31 August 2010. Accordingly, shareholders are advised that the
Company expects to report a basic loss per share for the year ended 31 August
2010 between 60.77 and 61.87 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 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 R749 million. In terms of International
Financial Reporting Standards 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, the Independent
Communications Authority of South Africa ("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 based its assumptions on the future
reductions in interconnection rates as communicated in recent statements by
ICASA. As a result of these changes, the Company has valued the Least Cost
Routing ("LCR") business based on managements` best estimate of the impact that
these changes will have on future cash flows. In addition, the Company has also
valued 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 are not impacted by the impairments to goodwill and intangible
assets.
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 or about 24 November 2010.
This trading statement has not been reviewed or reported on by the Company`s
external auditors.
Johannesburg
17 November 2010
Designated Adviser: Grindrod Bank Limited
Date: 17/11/2010 10:57:02 Produced by the JSE SENS Department.
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completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
