Telkom says its basic earnings per share for the year ending 31 March 2012 are expected to be at least 90% lower than the prior year, while headline earnings per share are expected to be at least 25% lower than the prior year.
The decrease in basic earnings is mainly attributable to once off items that will include a net loss of R950 million on the disposal of Multi-Links and the impairment of iWayAfrica of approximately R550 million.
In a statement to shareholders, Telkom says these losses will be partially offset by lower employee expenditure, as R739 million was spent on voluntary employee severance packages in the prior year.
The fixed-line operator's results for the year ended 31 March 2011 will be restated to reflect the entire investment in the Multi-Links business as a discontinued operation. The restated basic earnings per share from continuing operations for the period are 481.2c per share and the, while restated headline earnings per share from continuing operations are 484.8c per share.
The company expects to release its results for the year ending 31 March 2012 in June.
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