Vox Telecom is expecting its earnings per share and headline earnings per share to be between 35% to 45% lower than the 4,72 cents per share for the six months to 28 February, compared to the prior period.
In a statement, the company says that, as the end of 2008 the company prospectively assessed the useful lives of the acquired customer bases to better align the accounting treatment with industry best-practice by applying a useful life of 25 years – which has meant an increase in the amortisation rate of existing and acquired customer bases from 1,98% to 4%.
It says this increased amortisation rate caused an increase in the amortisation charge of approximately R13-million before taxation for the period.
In addition, the group has experienced higher than estimated finance charges and some tougher trading conditions during the period, which have occasioned slower
growth and impacted on group profitability, the statement continues.