On a more positive note, anyone who wants to invest in non-mineral stocks in Africa should consider TKG and NPSN.
Telkom lifts headline earnings 33.5%
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By Justin Brown
South African telecommunication utility Telkom (TKG) on Monday reported a 33.5% increase in headline earnings per share of 292.6 cents for the year to March 31, 2003.
The telecommunication group's operating profit rose 55.4% to 6.514 billion rand.
The I-Net Bridge analysts' consensus forecast was for headline earnings per share of 286 cents per share.
However, the range was wide - from a high of 404.8 cents and a low of 196 cents.
The reason for the wide range is that some analysts calculated their forecasts to include the IAS 39 adjustments, while others have excluded the adjustments.
Telkom listed on the JSE Securities Exchange and New York Stock Exchange in March this year.
The group's operating margin increased from 12.3% to 17.3%.
"The fixed line business improved its positioning with enhanced levels of service and product offerings. Cost savings were achieved across the group and customer growth in the mobile business continued to be strong," Telkom said in a statement.
There was growth in mobile customers of 26% and 20.6% growth in ISDN channels, a 15.2% increase in fixed-line data revenue and 15.4% increase in fixed-line prepaid customers.
During the year, Telkom launched its ADSL service in August 2002, there was the launch of the intercontinental submarine cable, Afrolinque in May 2002 and the launch of Vodacom Congo in the DRC in May 2002.
Subsequent to year-end, Telkom successfully concluded a three-year agreement with all its unions effective April 1, 2003.
The agreement provides for a 9% wage increase in the year ending March 31, 2004, an 8% in the year ending March 31, 2005 and a 7% in the year ending March 31, 2006.
On prospects, Telkom said the group faced increased competition and emerging telecommunication technologies, which placed greater importance on the need to maintain the group's position.
"We will continue to improve the competitiveness of our fixed line business by improved customer service, innovative products and competitive pricing.
We have also started to work more closely with Vodacom on potential synergies in areas such as marketing, procurement and products that will build value for both operators.
Our performance will be further enhanced by our commitment and ability to drive operational efficiencies, increase cash flows and reduce debt," Telkom said. |
