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Telkom profit tanks

Jun 22 2009 14:39

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Johannesburg - South African fixed-line phone firm Telkom SA Ltd posted a 45.9% fall in full-year headline earnings per share, hit by one-off charges, and said it would be delisted from the New York Stock Exchange. Operating profit decreased by 29.6% to R6.4bn.

Telkom said on Monday its headline EPS for continuing operations dropped to 557c per share for the year to end-March, as costs related to impairments of assets and Vodacom transaction knocked profits.

Telkom spun off Vodacom in May, giving control of the South African mobile phone company to British Vodafone.

The company said once-off items, including R177m expenses related to the Vodacom deal, impacted fixed-line expenditure.

Telkom is the dominant fixed-line phone firm in Africa's biggest economy, but revenue at its core business is under pressure, especially without earnings driver Vodacom.

Headline EPS, which excludes certain non-trading, capital and extraordinary items, is the key profit measure for South African companies.

- Reuters

 
 
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