Johannesburg - Fixed-line operator Telkom
[JSE:TKG] said on Tuesday that it expected profits to be lower for the year to March because of losses from its startup cellphone business and employee severance costs.
It also said it was restating its 2010 results to reflect the sale of part of its Multi-Links operation in Nigeria, which it said it was disposing of in April.
It said it expected normalised headline earnings per share to be 25% to 45% lower from the restated 686.7 cents.
Earlier on Tuesday, its share price extended losses on the news and was 2.30% lower at R35.40 rand in afternoon trade.
"Shareholders are reminded that the results for the year ended March 31 2010 have been restated to reflect the Multi-Links CDMA business as a disposal group held for sale, following the decision to exit this business," Telkom said in a trading statement.
It said its cellphone startup would incur a loss of R1.1bn, while the voluntary employee severance package expenditure had cost R739m.