The news:
- Telkom announced in a trading update on Wednesday, June 12, 2024, that it expects its earnings to increase by up to 200% in the upcoming fiscal year ending March 31, 2024 (FY2023).
- The results for the fiscal year will be published on Tuesday, June 18, 2024. Thus, the Johannesburg Stock Exchange-listed company's share price reportedly increased following the announcement.
Telkom claims that improved financial results are on the way, despite "challenging economic and trading environments."
“Stronger operational performance was driven by continued demand for our next-generation technologies, along with cost-optimisation initiatives. This, coupled with non-recurring once-offs in the previous comparable reporting period, contributed to a sharp improvement in earnings.” the company said.
The company stated that next-generation revenue increased by approximately 7%, accounting for nearly 80% of the group's total revenue.
Telkom informs its shareholders that reported basic earnings per share (BEPS) and restated headline earnings per share (HEPS) for the fiscal year ending March 31, 2023 (FY2023) are expected to increase by more than 20%.
Reported earnings before interest, taxes, depreciation and amortisation (EBITDA) — a measure of operating profit — increased by about 18%, or 5% when normalised, according to guidance.
Telkom also stated that lower depreciation and write-offs in the 2024 financial year after asset impairments recognised in 2023 positively impacted growth in earnings.
“Write-offs of property, plant and equipment and intangible assets reduced to approximately R80 million from R13 508 million write-offs and impairments of property, plant and equipment and intangible assets in the prior year; and net finance charges and fair value movements increased by approximately 47% from R1.485 billion in the prior year, largely due to higher lending rates during the year,” says the company.
Per the company, higher net finance charges, foreign exchange, and fair value movements in FY2024 slowed this growth.
Investors reacted positively to the news of expected earnings growth in 2024, resulting in a share price increase of more than 6% after the market opened in Johannesburg on Wednesday.
Give it a try, you can unsubscribe anytime. Privacy Policy.
