SA’s Telkom’s income suffers major hit; retrenches workforce

(2 minutes read)

· South African telecom company Telkom’s annual earnings to fall by 75% due to the impact of Covid-19 pandemic coupled with
restructuring cost.

· The company, which is currently finalizing its annual results for the year, expects its headline earnings per share to decrease by
65-75%.

South African telecom company Telkom’s annual earnings fell by 75% due to the impact of Covid-19 pandemic coupled with restructuring
costs. The company, which is currently finalizing its annual results for the year, expects its headline earnings per share to decrease by 65-75%. That will bring down its basic earnings per share by 75%-80% compared to the year ago period. The company further estimates that the restructuring program would cost R1.1 billion and additional impairments of R626 million due to Covid-19 would add to its year’s
losses.

The lackluster financial performance of the company has led to voluntary severance and retirement packages. Company’s fixed-voice business has shown marked decline in income. To ward off the losses, Telkom would be auctioning 53 of its properties, including vacant land, double-storey and single-storey industrial buildings, across the country. Also, it wants to trim the workforce by retrenching 3000
workers. The labor unions contested the issue in the court unsuccessfully.