| Tue 31 May 2011, 13:25 | | 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)
ISIN ZAE000044897
JSE Share Code TKG
("Telkom")
TELKOM TRADING STATEMENT
In terms of paragraph 3.4(b) of the JSE Listings Requirements, companies are
required to publish a trading statement as soon as they become reasonably
certain that the financial results for the period to be reported on next will
differ by at least 20% from those of the previous corresponding period.
Telkom is currently finalising its results for the year ended 31 March 2011,
which are expected to be released on or about Monday, 13 June 2011.
Shareholders are reminded that the results for the year ended 31 March 2010
have been restated to reflect the Multi-Links CDMA business as a disposal
group held for sale, following the decision to exit this business.
Profit from continuing operations have been normalised to exclude the effect
of the sale of Vodacom and Telkom Media in the prior year and impairments.
Normalised profit from continuing operations for the year ended 31 March 2011
is expected to be lower than the prior period primarily due to:
? the inclusion of approximately R1.1 billion operating loss relating to the
start-up of the mobile business;
? voluntary employee severance package expenditure incurred of approximately
R739 million; partially offset by
? lower taxation mainly as a result of lower profit levels and tax
concessions.
Normalised and reported headline earnings per share (`HEPS`) and Basic
earnings per share (`BEPS`) from continuing operations for the year ended 31
March 2011 are expected to differ from the prior year as indicated below.
March 2010 March 2011
Restated Expectation
Basic earnings per share
Reported 7,994.4 85% to 105% lower
Normalised 639.5 20% to 40% lower
Headline earnings per
share 260.5 55% to 75% higher
Reported 686.7 25% to 45% lower
Normalised
The main differences between basic earnings and headline earnings are the
profit on the sale and gain on unbundling of our 50% share in Vodacom in the
prior period and the related capital gains tax and impairments and write-offs
relating to property, plant and equipment and intangible assets as well as
profit on disposal of property, plant, equipment and intangible assets.
This trading statement has neither been reviewed nor reported on by the
company`s external auditors.
Update on Multi-Links
Multi-Links has on 20 December 2010, initiated a civil action against Helios
regarding the validity of the Master Lease Agreement. The matter has been
heard and judgement is expected on 7 June 2011 or soon thereafter. Helios
brought a counter application against Multi-Links on 23 December 2010 in which
they, amongst other things, requested an interim status quo order (to keep the
status of the parties` positions in terms of the contract intact for an
interim period); an interdict against the sale of Multi-Links` assets and a
claim for damages in the amount of USD252 million relating to so called
"anticipatory breach of contract". The interim status quo order was granted to
Helios in December 2010 but, in terms of Nigerian Court rules, expired seven
days after it was granted. The Court refused the interdict preventing the
sale. The damages claim of Helios has not yet been heard. Certain cost orders
have been awarded against Helios. The parties are still continuing to perform
in terms of the Master Lease agreement and the contract has not been breached
by Multi-Links.
Telkom remains committed to exiting Multi-Links` CDMA business.
Johannesburg
31 May 2011
Sponsor: UBS
Date: 31/05/2011 13:25:00 Produced by the JSE SENS Department.
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