Telkom flags a more than 50% fall in half-year earnings

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Telecommunications giant TelkomZA expects its earnings to fall by over half for the first half of its 2023 financial year, on the back of changes between its mobile postpaid & prepaid mix & an increasing cost base Moneyweb TelkomResults NtandoThukwana

Telecommunications giant Telkom expects its earnings to fall by over half for the first half of its 2023 financial year, on the back of changes between its mobile postpaid and prepaid mix and an increasing cost base. The big six network operator said it will report a decrease of between 45% and 55% in headline earnings per share and reported basic earnings per share when it delivers its six months financial results for the period ended 30 September 2021. Telkom expects headline earnings of 128.

Read: Telkom launches 5G network with Huawei “A shift in mobile product mix coupled with the upfront spend on handsets recorded immediately increased the cost of handsets, equipment, software and directories by more than 30% from R2.4 billion in the prior period,” Telkom said in a trading update to investors on Monday. It also saw a rise in maintenance and service costs, which climbed 10% from a previous R1.9 million and 20% from R1.6 billion respectively.

 

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Telkom interim earnings to be cut in halfTelkom on Monday warned investors that its interim headline earnings per share will slump by as much as 55%.
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