Fin24

Telkom warns on profits

2012-11-15 08:40

Johannesburg - Telkom warned late on Wednesday that its profits could take a knock of up to 83%.

In a trade update released after the markets closed on Wednesday, the telecommunications giant said it expected headline earnings per share from continuing operations for the six months ended September 30 2012 to be between 78% and 83% lower than the comparative period.

Basic earnings per share from continuing operations were expected to be between 62% and 67% lower.

The trade update was followed by an announcement that the parastatal appointed Jabulane Mabuza and Kholeka Mzondeki to its board on Wednesday.

Six board members, including CEO Nombulelo Moholi and board director Neo Phakama Dongwana, resigned earlier in November.

The election of a new chairperson may be contested by board members, especially those appointed by government, Business Day reported on Thursday.

Communications Minister Dina Pule voted off four board members at Telkom's annual general meeting in October. The meeting was last chaired by Lazarus Zim, who announced his resignation as Telkom chairperson in September.

Moholi had rejected speculation that she intended resigning after Zim left.

Telkom's share price had fallen by 10% since Moholi's resignation.

The parastatal is expected to release its interim results on or about November 19.

Comments
  • goyougoodthing - 2012-11-15 09:12

    As a parastatal they should make NO profit

      charlesbronson.bronson - 2012-11-15 09:35

      They are going the same root as SAA, bail out! The reason is because the market is far to open for them. It's not like Eksdom that as the monopoly and dictating and robbing the poor!

      paul.john.790256 - 2012-11-15 09:39

      Last time I checked, Telkom was a listed company with government as its largest shareholder. They are definitely not a parastatal and the shareholders expect a profit.

      goyougoodthing - 2012-11-15 10:36

      paul, as a majority shareholder being government, any profit should go back to the PEOPLE and infrastructure. It is counter-intuitive to make a profit in this way.

      boltonbarry - 2012-11-15 15:32

      This government cant even manage the gravy train properly

  • afrikeni - 2012-11-15 09:13

    But still they have money to regularly sponsor 2 hrs on SABC 2 Morning LIVE where government ministers talk so much but make little sense!

      napolita.kio - 2012-11-15 10:19

      How do you manage to get the time to watch SABC?

  • richard.laros.77 - 2012-11-15 09:24

    Lemme guess now Telkom, you are going to introduce some new communications tax for the whole country so you can still get your bonuses

  • denton.estment - 2012-11-15 09:39

    The problem with our parastatals is get in atthe top earn massive salaries then resign with bonuses etc and you do not have to work again. the taxpayers will foot the bill. Wonderfull gravy train in South Africa.

  • Montagnes.Bleues - 2012-11-15 10:29

    Ah, another great ANC achievement to wrap up on the terrace verandha of "Palais Royale Nkandla Khaya". Gigaba, are you joining the giqwa's in this 'black hole of tax payers funds' having broken the entire SA transport (combo taxi/shipping/air/road/rail) back already? BUILD OUR FUTURE - http://bit.ly/SqKAi3

  • jacobus.hendrikse - 2012-11-15 10:48

    I warn you too, Telkom, and your shareholders. You been charging me for 2 years for 2 meg line and 10gig data, and I found out this morning the area I live in only supported by a 1 meg infrastructure. You owe me, and I want my money back. Don't care about your shareholders. You steal.

      ike.jakson - 2013-02-28 06:45

      See: http://www.fin24.com/MyFin24/Open-letter-to-Telkom-20130227

  • richard.zanner - 2012-11-15 11:23

    Am I supposed to be surprised. The whole country is falling apart so why not Telkom to even thought they enjoy this huge monopoly. But not to worry the tax payer will bail them out just after they bail out SAA, the roads, Eskom, schools and have finished building these palaces for our officials. Oops, I was not supposed to say that as we are no longer allowed to say bad things.

  • braamc - 2012-11-15 18:32

    Bankrupt, there is a surprise. Privatise and get rid of the useless "management"

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