Telkom expects to report improved financial results for the financial year ended 31 March 2024, stronger operational performance driven by continued demand for its next-generation technologies along with cost-optimisation initiatives.

It has issued a trading statement advising shareholders that basic earnings per share (BEPS) and headline earnings per share “HEPS) for the year are expected to increase by more than 20% compared the previous year.

Reported BEPS is set to increase between 114% and 124%, to between 281.1 and 486.2 cents per share. Normalised BEPS will increase between 440% and 450% to between 383.3 and 390.6 cents per share.

Restated HEPS will increase between 1 155% and 1 165% to between 374.6 and 378.2 cents per share. Normalised HEPS will increase between 195% and 205% to between 368.2 and 380.6 cents per share.

HEPS was restated due to an incorrect tax adjustment resulting in an overstatement of HEPS relating to the prior year, according to the statement.

It adds that the difference between BEPS and HEPS is largely due to the net impact of write-offs of assets as well as profit/loss on sale of assets for FY2024.

For FY2023, the difference between BEPS and HEPS was largely due to the net impact of impairment of assets as well as profit/loss on sale of assets.

Next-generation revenues grew by approximately 7% and now comprise almost 80% of total group revenue. Reported EBITDA grew by approximately 18%, while normalised EBITDA grew in line with guidance at approximately 5%.

Growth in earnings was positively impacted by lower depreciation and write-offs in FY2024 after asset impairments recognised in FY2023. This growth was partially offset by higher net finance charges and foreign exchange and fair value movements in FY2024.