Fin24

Telkom issues profit warning

2012-09-20 13:10

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.

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Comments
  • Judy - 2012-09-20 13:36

    Shame What No fat bonuses this Year. My heart bleeds lumpy custard. Just wish there was more competition in this country and less Collusion between firms to keep the prices high

      JamesMWood - 2012-09-20 17:37

      Well I cancelled my telkom line yesterday, worst service I have ever experienced, definately not world class, africa class maybe but then that aint saying much for them.

  • braamc - 2012-09-20 13:44

    Now here is a surprise

      derek.smith.12177276 - 2012-09-20 15:19

      assuming that you are sarcastic braamc......

      braamc - 2012-09-20 20:00

      @derek - very much so

  • maurice.fisher.14 - 2012-09-20 15:02

    that is what happens when for years telkom had the monopoly in the market, me being in telecoms myself i have learnt that there are more reliable and cheaper methods of communications for a company,the days of being robbed cause thats all there was is over and im glad to see that more people are venturing into different agreements with opposing companies...well done to the people and business owners

      Jellyarse - 2012-09-20 17:05

      now to nail those other fat bastards - the cellphone companies! How come I can buy UK airtime at 3p per minute - nothing to do with the number of consumers, it's all about competition! Telkom had it too good for too long through monopolisation. Now, add to this just stinking lousy rotten management and you have the perfect formula for another state bailout!Been in the industry for more than 30 years and every time I look at Telkom, I shake my head - anywhere else in the world they'd be long gone!

      Jellyarse - 2012-09-20 21:44

      The only people who would give a thumbs down to my comment are those other fat bastards - the cellphone companies and incompetent Telkom exec's - The rest is fact and I'm afraid the truth hurts!

  • peter.hall.3956 - 2012-09-20 15:04

    Where do the fines go? Back to the users that have been ripped off?

  • derek.smith.12177276 - 2012-09-20 15:19

    at last ...their service levels will compare with their profit margin...0%

  • Billy - 2012-09-20 15:37

    let go for the internet.

  • crystal.core.5 - 2012-09-20 16:06

    I recommend putting more ANC cadres on the board to fix this mess. eh comrades? ANC cadres (including brothers, sisters, uncles, cousins, school friends of senior politicians and ministers with shared foreign bank accounts) have done such a great job of running things at SABC, SAA, Telkom you would expect them to be the most desired executives in the whole wide world ...In fact, we should start exporting them to other countries, so they too can experience the joys learning this unique form of economics and management practiced by these business geniuses.

  • DraganTrenk - 2012-09-20 19:55

    That is logical consequence of the social re-engineering and "Job creation"(AA,BBEEE...).If you ever phoned their Call Center,you will be met with a stupidity,laziness,lack of any empathy for the Customer. Primitiveness "par exelance".WORLD CLASS-my ass.More and more,you will find the same at the Airport,not to save notorious Municipality.WORLD CLASS,ha,ha,ha,ha...It is nice to be delusional fool.

  • heidi.lundie - 2012-09-20 23:57

    Is there a better alternative to telkom landlines?

      DraganTrenk - 2012-09-21 08:42

      I am using AMOBIA for my wireless Uncapped 1Mb Internet,only R.499.p/m and my cellphone for the necessery voice communications.Brilliant for now.

  • Artinus Hamunyela Kei - 2012-09-21 01:05

    may be, may be not!

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