Telkom shares dive on profit warning
Johannesburg - Shares in Telkom [JSE:TKG] dropped more than 7% in afternoon deals on Friday after the telecoms group forecast a sharp fall in full-year profit.
Telkom, whose biggest shareholder is the government, was down 3.45% at R23.50 in afternoon trade, recouping some lost ground after sinking over 7%.
The company said headline earnings per share (EPS) likely fell by at least 25% in the year to the end of March.
The company also said basic EPS, which includes one-off items, is likely to show at least a 90% decline because of R950m in losses from the sale of its Nigerian unit and a R550m writedown on its broadband unit iWayAfrica.
The company also took a R2.2bn loss from its recently launched cellphone business in South Africa.