Telkom SA Drops to 8-Year Low on Profit: Johannesburg Mover
Telkom South Africa Ltd. (TKG) plunged to the lowest in more than eight years after saying earnings excluding one-time items probably fell at least 25 percent for the year through March.
Shares in the Pretoria-based Telkom dropped 1.4 percent to 24 rand, the lowest since October 2003, at the 5 p.m. close in Johannesburg.
Africa’s largest fixed-line phone company said earnings excluding one-time items will be at least 25 percent lower than the prior year as it spent about 739 million ($96.4 million) firing workers and recorded a 1.5 billion rand loss on the sale and impairment of two businesses in the year.
Basic earnings per share from continuing operations will be at least 90 percent lower than the restated 4.85 rand per share last year, said Telkom.
The company, majority-owned by the South African government, will lose about 650 million rand on the sale of Nigerian unit Multi-Links Telecommunications Ltd., it said on Sept. 29.
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