Telkom Shares Soar on Increase in Full-Year Earnings

Telkom Full-Year Earnings Surge: Telkom, a popular telecommunications group, has predicted a rise in its revenue in the forthcoming annual results for the year ended 31 March (FY2024). Telkom climbed 5.7% to close at R24.99 per share yesterday on news that normalized headline earnings per share (HEPS).  

The results, for the 12 months to March 2024, will be published next Tuesday. Telkom said it will report the financial results despite what it described as “challenging economic and trading environments”. 

One of the factors that facilitated the company’s revenue growth is the company’s next-generation technologies, which saw continued demand. 

Telkom Full-Year Earnings Surge

Revenue from next-generation services grew by approximately 7%. It now constitutes nearly 80% of total group revenue. 

Reported EBITDA grew by about 18%, while normalized EBITDA aligned with guidance, growing by roughly 5%.

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The company said, “Stronger operational performance was driven by continued demand for our next-generation technologies. Our cost-optimisation initiatives also contributed to this effect.” 

“This, coupled with non-recurring once-offs in the previous comparable reporting period, contributed to a sharp improvement in earnings.”

Telkom Prediction On HEPS And BEPS For FY2024

Telkom anticipates a substantial increase in both basic earnings per share (BEPS) and headline earnings per share (HEPS) for FY2024. 

BEPS is expected to increase by more than 20%, reaching between 281.1 and 486.1 cents per share. This is higher compared to a reported loss of 2,058.9 cents in FY2023. Normalized BEPS is projected to rise by 440% to 450%, landing between 383.5 and 390.6 cents per share. 

Likewise, HEPS is predicted to increase from 1,155% to 1,165%, with normalised HEPS increasing by 195% to 205%. 

Telkom Full-Year Earnings Surge, A Result Of Lower Depreciation

This substantial gain in earnings is partly due to lower depreciation and write-offs compared to the previous year. Although higher net finance charges and foreign exchange movements partially offset these profits.

Telkom said, “This growth was partially offset by higher net finance charges, and foreign exchange and fair value movements in FY2024.”