Telkom reports 36% plunge in H1 profit
JOHANNESBURG – South Africa’s Telkom SA said on Tuesday its half-year profit slumped by 36%, driven down by a surge in finance costs and unfavourable foreign exchange shifts.
The company, 40% owned by the state, has spent billions of rand on its mobile business, which helped bolster performance last year but has driven up its debt burden. Net finance charges and fair value movements rose 87% in the first half, it said.
Telkom flagged earlier in November that it anticipated its profit to drop up to 40%. In the end, its headline earnings per share for the six months to Sept. 30 stood at 183.4 cents, versus 288 cents a year earlier.
Source: iol.co.za
