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

African tech startup funding hits $3.3B in 2022

Investment in Africa's tech startup ecosystem passed $3 billion for the first time in 2022, with Nigeria taking the biggest piece of pie and fintech dominating other sectors, according to a report from Disrupt Africa.

Story

Connecting Africa Podcast: S2 Ep. 4 – Agri-fintech, from kibbutz to Kenya

The Connecting Africa Podcast team speak to Israeli-Kenyan startup Avenews' co-founder and CEO, Shalom Ben-Or, about his fintech super-app that has been built specifically for Africa's agriculture industry.

More Innovation hub

Flash poll

All polls

Partner perspectives

All Partner Perspectives

Africa Tech Perspectives

Story

Women in Tech: Spotlight on inclusivity with Digital Council Africa's Juanita Clark

Digital Council Africa founder and CEO, Juanita Clark, talks to Connecting Africa as part of our Women's Month series about her career and what needs to be done to make the tech industry intentionally inclusive.

Story

Women in Tech: Spotlight on legal tech with Life.file's Sinal Govender

Life.file co-founder, Sinal Govender, talks to Connecting Africa as part of our Women's Month series about her career and how we can encourage more young girls to enter the legal tech field.

Story

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.

More AfricaCom perspectives

Latest video

More videos

Industry announcements

More Industry announcements

Guest Perspectives

Story

Omdia View: July 2022

By Omdia Analysts

Kenya and Zambia move towards 5G with new spectrum allocations while Tunisie Telecom plans to shut down its 3G network - that and more in this month's Omdia View.

Story

Omdia View: June 2022

By Omdia Analysts

5G was the major news trend across Africa in June, as Orange became the first operator to launch 5G in Réunion and operators in Senegal accelerated their 5G plans despite spectrum delays.

More Guest Perspectives

Sponsored video

More videos

Like us on Facebook

Newsletter Sign Up


Sign Up