20°C / 22°C
  • Sun
  • 29°C
  • 14°C
  • Mon
  • 27°C
  • 12°C
  • Tue
  • 25°C
  • 9°C
  • Wed
  • 22°C
  • 8°C
  • Thu
  • 24°C
  • 3°C
  • Fri
  • 27°C
  • 7°C
  • Sun
  • 17°C
  • 12°C
  • Mon
  • 19°C
  • 12°C
  • Tue
  • 22°C
  • 12°C
  • Wed
  • 26°C
  • 13°C
  • Thu
  • 32°C
  • 17°C
  • Fri
  • 23°C
  • 16°C
  • Sun
  • 31°C
  • 15°C
  • Mon
  • 28°C
  • 13°C
  • Tue
  • 27°C
  • 11°C
  • Wed
  • 25°C
  • 10°C
  • Thu
  • 26°C
  • 7°C
  • Fri
  • 30°C
  • 9°C
  • Sun
  • 31°C
  • 15°C
  • Mon
  • 30°C
  • 14°C
  • Tue
  • 29°C
  • 12°C
  • Wed
  • 22°C
  • 9°C
  • Thu
  • 24°C
  • 4°C
  • Fri
  • 29°C
  • 9°C
  • Sun
  • 22°C
  • 16°C
  • Mon
  • 20°C
  • 15°C
  • Tue
  • 19°C
  • 14°C
  • Wed
  • 20°C
  • 12°C
  • Thu
  • 21°C
  • 12°C
  • Fri
  • 25°C
  • 14°C
  • Sun
  • 15°C
  • 12°C
  • Mon
  • 17°C
  • 10°C
  • Tue
  • 18°C
  • 10°C
  • Wed
  • 19°C
  • 12°C
  • Thu
  • 25°C
  • 12°C
  • Fri
  • 25°C
  • 18°C
  • Sun
  • 16°C
  • 7°C
  • Mon
  • 23°C
  • 7°C
  • Tue
  • 24°C
  • 9°C
  • Wed
  • 30°C
  • 10°C
  • Thu
  • 35°C
  • 16°C
  • Fri
  • 31°C
  • 16°C
  • Sun
  • 15°C
  • 10°C
  • Mon
  • 20°C
  • 10°C
  • Tue
  • 21°C
  • 12°C
  • Wed
  • 26°C
  • 13°C
  • Thu
  • 29°C
  • 20°C
  • Fri
  • 25°C
  • 18°C
  • Sun
  • 32°C
  • 15°C
  • Mon
  • 31°C
  • 16°C
  • Tue
  • 28°C
  • 13°C
  • Wed
  • 25°C
  • 13°C
  • Thu
  • 25°C
  • 9°C
  • Fri
  • 30°C
  • 9°C
  • Sun
  • 27°C
  • 11°C
  • Mon
  • 28°C
  • 8°C
  • Tue
  • 28°C
  • 12°C
  • Wed
  • 25°C
  • 8°C
  • Thu
  • 25°C
  • 8°C
  • Fri
  • 29°C
  • 14°C
  • Sun
  • 33°C
  • 13°C
  • Mon
  • 19°C
  • 13°C
  • Tue
  • 21°C
  • 12°C
  • Wed
  • 21°C
  • 7°C
  • Thu
  • 22°C
  • 4°C
  • Fri
  • 26°C
  • 6°C
  • Sun
  • 13°C
  • 8°C
  • Mon
  • 17°C
  • 8°C
  • Tue
  • 18°C
  • 9°C
  • Wed
  • 21°C
  • 9°C
  • Thu
  • 30°C
  • 14°C
  • Fri
  • 29°C
  • 19°C

Telkom shares rise on turnaround hopes

The fixed-line operator has lost three quarters of its market value in nearly six years.

Telkom has been hit by competition from mobile operators MTN and former unit Vodacom.

JOHANNESBURG - Shares of Telkom SA rose on Friday as investors bet the fixed-line operator may be on the path toward recovery after a 73 percent drop in full-year profit.

Telkom has written down the value of its network by R12 billion rand and agreed to settle some longstanding regulatory disputes, as new chief executive Sipho Maseko looks to convince the market it has turned the corner.

Telkom, in which South Africa's government and pension fund hold a combined majority stake, has lost three quarters of its market value in nearly six years, hit by competition from mobile operators MTN and former unit Vodacom.

"We've had a bit of a tough time over the last few years and we want to just reset exactly who we are," said Maseko, Telkom's sixth chief executive since 2005.

Shares of Telkom were up 5 percent at R16.10 at 1434 GMT.

"The real concern is the majority shareholder in government which has really put a spanner in the works in terms of enabling the company to turn around," said Nic Norman-Smith, chief investment officer at Lentus Asset Management in Johannesburg.

Pretoria last year blocked a $385 million offer from South Korea's KT Corp for 20 percent of the company. The ruling African National Congress sees Telkom as a critical asset in its plan to roll out internet service to the poor.

Telkom said headline earnings per share totalled 87 cents in the year to end-March, down 73 percent from a year earlier, hit by lower revenue and costs of an employee severance programme.

Headline earnings, the main measure of profit do not include certain one-time items. Including the cost of the network write-down would put Telkom at a loss of R11.7 billion for the year.

Comments

EWN welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

- Racism (including offensive comments based on ethnicity and nationality)
- Sexism
- Homophobia
- Religious intolerance
- Cyber bullying
- Hate speech
- Derogatory language
- Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the EWN community a safe and welcoming space for all.

EWN reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

EWN is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

comments powered by Disqus