| Mon 8 May 2006, 17:05 | | Telkom SA Limited - Trading Statement |
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TKG
TKG
Telkom SA Limited - Trading Statement
Telkom SA Limited
(Registration Number 1991/005476/06)
ISIN ZAE000044897
JSE and NYSE & Share Code TKG
("Telkom" or "Company")
TELKOM SA LIMITED TRADING STATEMENT
In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Limited,
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 March 31, 2006,
which are expected to be released on June 5, 2006. Telkom accordingly advises
that it expects an increase of between 35% and 45% in basic earnings per share
and between 30% and 40% on headline earnings per share for the year ended March
31, 2006 from the comparative year ended March 31, 2005, as published in the
Telkom interim results for the six months ended September 30, 2005. The above
results have primarily been impacted by increased revenue and lower employee
expenses and depreciation charges. Lower employee expenses were as a result of
the reduced number of employees and lower depreciation charges were as a result
of the continuing assessment of useful lives of assets.
The above information has neither been reviewed nor reported on by the Company"s
external auditors.
Johannesburg
May 8, 2006
Sponsor: UBS
Special note regarding forward-looking statements
All statements contained herein, as well as oral statements that may be made by
Telkom or Vodacom Group (Proprietary) Limited ("Vodacom"), in which Telkom has a
50% holding, or by officers, directors or employees acting on their behalf, that
are not statements of historical facts, particularly Telkom"s expectations with
respect to basic and headline earnings per share, 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. Such forward-looking statements involve a number of known and
unknown risks, uncertainties and other factors that could cause Telkom"s or
Vodacom"s 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 Telkom"s or Vodacom"s actual
results or outcomes to differ materially from their expectations are those risks
identified in Item 3. "Key Information-Risk Factors" contained in Telkom"s most
recent annual report on Form 20-F filed with the U.S. Securities Exchange
Commission ("SEC") and Telkom"s other filings and submissions with the SEC,
which are available on Telkom"s website at www.Telkom.co.za/ir, including, but
not limited to, the completion of Telkom"s results for the year ended March 31,
2006 and the audit thereon, 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; Telkom"s and Vodacom"s ability to
attract and retain key personnel; Telkom"s inability to appoint a majority of
Vodacom"s directors and the consensus approval rights at Vodacom may limit
Telkom"s flexibility and ability to implement its preferred strategies;
Vodacom"s continued payment of dividends or distributions to Telkom; Telkom"s
ability to improve and maintain its management information and other systems;
Telkom"s negative working capital; changes and delays in the implementation of
new technologies; Telkom"s ability to reduce theft, vandalism, network and
payphone fraud and lost revenue to non-licensed operators; Telkom"s ability to
improve its internal control over financial reporting; health risks related to
mobile handsets, base stations and associated equipment; Telkom"s 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; Telkom"s
ability to negotiate favorable terms, rates and conditions for the provision of
interconnection services; Telkom"s 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 South African Municipal Property Rates Act;
fluctuations in the value of the Rand; the impact of unemployment, poverty,
crime and HIV infection, labor laws and exchange control restrictions in South
Africa; and other matters not yet known to Telkom or Vodacom or not currently
considered material by them.
You should not place undue reliance on these forward-looking statements. All
written and oral forward-looking statements attributable to Telkom or Vodacom,
or persons acting on their behalf, are qualified in their entirety by these
cautionary statements. Moreover, unless Telkom or Vodacom is required by law to
update these statements, they will not necessarily update any of these
statements after the date of this trading statement, either to conform them to
actual results or to changes in its expectations.
Date: 08/05/2006 05:05:07 PM Produced by the JSE SENS Department
