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

  • 📰 News24
  • ⏱ Reading Time:
  • 34 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 80%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

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.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 4. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Telkom issues major profit warning — headline earnings plummets up to 105%Telkom has warned shareholders that it expects a massive hit to its annual profits.
Source: mybroadband - 🏆 11. / 67 Read more »