Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Business of Tech

Telkom SA predicts earnings jump

Article Image
Telkom South Africa is expecting its half-year headline earnings per share (HEPS) to be as much as 25% better than last year, as it secures its spot as SA's third-biggest mobile operator.

The SA telco released a trading update on Tuesday morning telling the market that its HEPS for the half year ended September 30, 2020, would likely be between 15% and 25% better than a year ago and basic earnings per share (BEPS) are expected to increase by 19% to 27% year-on-year.

HEPS is considered a key profitability measure for South African companies. Telkom SA's shares on the Johannesburg Stock Exchange were trading up by over 14.5% by 14:00 CAT at R29.94 per share (US$1.87) on the back of the news.

Telkom said the expected increase was mainly driven by 16% growth in operating profit as a result of solid growth in group earnings before interest, tax, depreciation and amortization (EBITDA), partially offset by an increase in the effective tax rate from 28.8% in the prior period to 34.8%.

Telkom South Africa CEO Sipho Maseko
Telkom South Africa CEO Sipho Maseko

"The Group performance was sound despite a difficult trading environment due to the adverse impact of COVID-19 on the economy. Group revenue showed resilience in the face of this pandemic, remaining broadly flat compared to the prior period," the company said in the trading statement.

Telkom's mobile business is continuing its growth trajectory, "placing Telkom Mobile solidly as the third largest mobile operator in South Africa," it said.

Cell C's latest financial results confirmed that the struggling operator had lost its place as South Africa's third biggest provider. Cell C's customer base dropped 28% year-on-year from almost 16.3 million in the first half of 2019 to 11.7 million this year, while Telkom grew its base to 12 million mobile customers as of the end of March 2020.

Telkom's interim results will be released on November 10, 2020, with a presentation in Centurion which will also be streamed online.

— Paula Gilbert, Editor, Connecting Africa

Innovation hub


Connecting Africa Podcast: Ep. 8 – Edtech for the future of work

This week we are joined by Eyitayo Ogunmola, CEO of Utiva, which is a startup offering technology skills training to prepare young people for the the future of work.


Hot startup of the month: Malawi's Converged Technology Networks

Startup Converged Technology Networks is focused on addressing the unmet demand for residential broadband Internet access in Malawi.

More Innovation hub

Latest video

More videos

Guest Perspectives


Omdia View: October 2021

By Omdia Analysts

Across the Middle East and Africa, regulators are beginning to facilitate spectrum allocation to operators in the region for the deployment of new and innovative technology.


Research Bites: Why Africans stop using mobile apps

By Chinedu Wilfred Okonkwo, Magda Huisman and Estelle Taylor

This article – in collaboration with the African Journal of Science, Technology, Innovation and Development – explores the reasons behind why Africans stop using certain mobile apps.

More Guest Perspectives

Partner perspectives

All Partner Perspectives

AfricaCom perspectives


Digital inclusion as a catalyst for economic empowerment: Mastercard's Imelda Ngunzu

Mastercard's Imelda Ngunzu talks to Connecting Africa about how digital payment solutions and mobile money are transforming the lives of small business owners, women and marginalized groups in East Africa.


Accelerating women in STEM: In conversation with GirlCode's Tinyiko Simbine

GirlCode co-founder and CFO Tinyiko Simbine talks about why it's important to help girls and young women excel in science, technology, engineering and mathematics (STEM) fields.


How Poa Internet is unlocking meaningful connectivity in East Africa

Poa Internet's CEO Andy Halsall shares his views on what it takes to develop last-mile connectivity and get Africans online in a meaningful way.

More AfricaCom perspectives

Flash poll

All polls

Archived webinars

Meeting SME’s where they are - Building inclusive ecosystems for Africa’s small business owners

Micro and small businesses have been, and still are, the spine and lifeblood of the African economy, making up 90% of businesses on the continent.

Many of these businesses have still been operating in traditional ways and serving non-digital customers. With Covid-19 expediting the digital transformation process, businesses - big and small - have been forced to adapt to operate successfully in a more digital-first environment.

To ensure that the digitalization of Africa’s market doesn’t leave micro and small businesses behind, digital solutions must be inclusive and create business-ready environments. But how can we ensure that African SMEs become digitally enabled?

In this webinar we will share from our own experience on how to create such an environment, and the actions we took in vcita to get there, including:

  • Closing the digital literacy gap through tech inclusion 
  • Making a positive impact on local communities
  • Building the foundations for digital inclusion and small business growth in a technology-accelerated world
  • Building the foundations for digital inclusion and small business growth in a technology-accelerated world

Register Here >>

More Webinars

Sponsored video

More videos

Like us on Facebook

Newsletter Sign Up

Sign Up