Telkom issues profit warning
Johannesburg – Telkom [JSE:TKG] said in a trading update that basic earnings per share from continuing operations for the six months ending September 30 were expected to be at least 45% lower than the comparative period in the prior year‚ due to fines it has to pay.
Headline earnings per share from continuing operations for the six months are expected to be at least 65% lower than the comparative period in the prior year.
Telkom said the lower earnings are mainly attributable to an increase in the provision for Competition Commission fines relating to transgressions of the company dating back approximately 10 years.
The operational performance for the period up to August 31 has been further characterised by flat revenue and operating costs that escalated just below inflation‚ it added.
The company plans to release its results for the six months ended September 30 or November 19.
*Follow Fin24 on Twitter, Facebook,
Google+ and Pinterest.