Telkom crashes almost 30% in minutes after warning of billions in writedowns | Business

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SA's third-biggest mobile operator Telkom warned on Wednesday its profits have plummeted after retrenchments and a strategic shift towards digital technologies prompted one-off costs of more than R14 billion, approaching its market value of R16 billion.

SA's third-biggest mobile operator Telkom warned on Wednesday its profits have plummeted after retrenchments and a strategic shift towards digital technologies prompted one-off costs of more than R14 billion, approaching its market value of R16 billion.

The company's basic earnings per share are expected to crash by as much as 485%, as Telkom has to digest more than R1 billion in retrenchment-related costs and R13 billion in writedowns of various business units. Telkom said that"significant market changes and current economic conditions, including accelerated load shedding, low anticipated economic growth rates and a high interest rate environment, coupled with evolving technological advancements have had an adverse effect on the group."It was considering impairments related to Openserve, Telkom Consumer, Gyro and BCX, which follows a strategy to accelerate its migration to newer technologies.

 

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