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

Story

Omdia View: February 2024

Highlights in February 2024 in the Middle East and Africa included 5G launches in Senegal and 5G trials in Egypt as well as Kenya's first 5G MVNO. Airtel also launched a new wholesale connectivity business while MTN and Huawei are planning a joint Innovation Technology Lab in South Africa – that and more in this month's Omdia View.

Story

Key adoption areas for machine learning in Africa

ICT analyst Francis Hook identifies some of the key sectors that could be positively impacted by machine learning, including education, government services, healthcare and climate tech.

More Innovation hub

Latest video

More videos

Partner perspectives

All Partner Perspectives

Sponsored video

More videos

Industry announcements

More Industry announcements

Upcoming events

Africa Tech Festival 2024
November 11-14, 2024
Cape Town, South Africa
More Upcoming events

Africa Tech Perspectives

Story

Uber's Marjorie Saint-Lot on inclusion and sustainability in Africa

Uber's Country Manager for Ghana and Cote d'Ivoire, Marjorie Saint-Lot, shares how the ride-hailing company is approaching public-private partnerships, environmentally friendly initiatives and gender inclusion in Africa.

Story

The 100 most influential African leaders in 2023

A new report from Africa Tech Festival and Connecting Africa puts a spotlight on the top 100 African leaders in the telecoms and technology sector in 2023.

Story

Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

More Africa Tech perspectives

Guest Perspectives

Story

Omdia View: February 2024

By Omdia Analysts

Highlights in February 2024 in the Middle East and Africa included 5G launches in Senegal and 5G trials in Egypt as well as Kenya's first 5G MVNO. Airtel also launched a new wholesale connectivity business while MTN and Huawei are planning a joint Innovation Technology Lab in South Africa – that and more in this month's Omdia View.

Story

Omdia View: January 2024

By Omdia Analysts

Highlights in January 2024 in the Middle East and Africa included a $200 million fintech deal between MTN and Mastercard as well as 5G network trials by Telecom Egypt – that and more in this month's Omdia View.

More Guest Perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up
Tag id test-002