Telkom expects 20% slump in earnings per share; Cell C to reduce its workforce by 13%

13 Oct 2014

South African network operator Telkom has announced that it expects both its basic and headline earnings per share for the six months ended 30 September 2014 to be at least 20% lower than a year ago. According to a press release, ‘the expected decrease in the results for the 2015 interim reporting period is due to the net curtailment gain of ZAR2.2 billion (USD198.55 million) recognised on the post-retirement medical aid liability in the prior corresponding period.’ Telkom said it will provide an updated trading statement confirming a more specific range for both basic and headline earnings per share once it has reasonable certainty on the result to be reported on. It expects to publish its interim results on 17 November 2014.

Meanwhile, domestic wireless operator Cell C is planning to reduce its workforce by 13% in order to ‘decrease the dynamics of a restructuring designed to streamline management, improve efficiency and eliminate duplication in the organisation chart’, TechCentral reports. Cell C said that the retrenchment exercise could affect up to 190 employees; the company is aiming to finalise the process by 31 January 2015.

South Africa, Cell C, Telkom South Africa