Telkom takes a bruising

09 April 2013 - 03:30
By TJ Strydom
Telkom-towers. File photo
Image: Times Media Telkom-towers. File photo

Telkom's share price dipped yesterday as the company announced that it expected a substantially weaker performance than last year.

Telkom said its headline earnings per share for the financial year that ended on March 31 would be at least 20% lower than last year.

Shortly after the statement Telkom's share price fell by 5% to R14. This is close to its 12-month low of R13.70.

The share of the state-controlled fixed-line operator has slid more than 35% in the past year amid a management shake-up and concerns over its mobile business, 8ta.

Standard & Poor's cut its long-term credit rating for Telkom to BBB- from BBB in December.

It made the cut two months after another ratings agency, Moody's, downgraded Telkom.

The company's shares recovered in subsequent trading yesterday to close at R14.45, about 1.57% lower than the previous close.