| Tue 25 Oct 2005, 17:15 | | Telkom SA Limited - Telkom SA Limited Trading Stat |
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Telkom SA Limited - Telkom SA Limited Trading Statement
Telkom SA Limited
(Registration Number 1991/005476/06)
ISIN ZAE000044897
JSE and NYSE Share Code TKG
("Telkom" or the "Company")
TELKOM SA LIMITED TRADING STATEMENT
In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Limited,
issuers 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 six months ended 30 September
2005, which are expected to be released on 14 November 2005. Telkom accordingly
advises that it expects an increase of between 50% and 70% in basic earnings per
share and between 35% and 55% on headline earnings per share for the six months
ended 30 September 2005 from the comparative six months ended 30 September 2004.
The above results have been impacted by revenue growth, related taxation and
extending the useful lives of certain assets. There are no significant
differences between basic and headline earnings per share.
This trading statement has neither been reviewed nor reported on by the
Company"s external auditors.
Johannesburg
24 October 2005
Sponsor: UBS
Special note regarding forward-looking statements
All of the statements included in this trading statement, as well as oral
statements that may be made by us or by officers, directors or employees acting
on behalf of us, that are not statements of historical fact 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.
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. Among the factors that
could cause our actual results or outcomes to differ materially from our
expectations are those risks identified in Item 3. "Key Information-Risk
Factors," of Telkom"s most recent Annual Report on Form 20-F filed with the US
Securities and Exchange Commission (SEC) and its other filings and submissions
with the SEC, including, but not limited to, increased competition in the South
African fixed-line and mobile communications markets; developments in the
regulatory environment; continued mobile growth and reductions in Vodacom"s and
Telkom"s net interconnect margins; Vodacom"s and Telkom"s ability to expand
their operations and make investments in other African countries and the general
economic, political, social and legal conditions in South Africa and in other
countries where Vodacom and Telkom invest; our ability to attract and retain key
personnel; our inability to appoint a majority of Vodacom"s directors and the
consensus approval rights at Vodacom may limit our flexibility and ability to
implement our preferred strategies; Vodacom"s continued payment of dividends or
distributions to us; our ability to improve and maintain our management
information and other systems; our negative working capital; changes and delays
in the implementation of new technologies; our ability to reduce theft,
vandalism, network and payphone fraud and lost revenue to non-licensed
operators; our ability to improve our internal control over financial reporting;
health risks to related mobile handsets, base stations and associated equipment;
our control by the Government of the Republic of South Africa; the outcome of
regulatory, legal and arbitration proceedings, including tariff approvals, and
the outcome of Telkom"s hearing before the Competition Commission related to the
VANs litigation, its proceedings with Telcordia Technologies Incorporated and
others; our ability to negotiate favourable terms, rates and conditions for the
provision of interconnection services; our ability to implement and recover the
substantial capital and operational costs associated with carrier pre-selection,
number portability and monitoring and interception; Telkom"s ability to comply
with the South African Public Finance Management Act and South African Public
Audit Act and the impact of the Municipal Property Rates Act; fluctuations in
the value of the Rand; the impact of unemployment, poverty, crime and HIV
infection, labour laws and exchange control restrictions in South Africa; and
other matters not yet known to us or not currently considered material by us.
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 hereof,
either to confirm them to actual results or to changes in our expectations.
Date: 25/10/2005 05:15:05 PM Produced by the JSE SENS Department
