Telkom shares rallied 3.75% on Monday as the state-affiliated operator signalled its full-year headline earnings are expected to almost double after it turned in a robust operational performance and completed the sale of Swiftnet.
The group, whose disposal of its 100% equity shareholding in masts and towers business Swiftnet earlier in 2025, expects adjusted headline earnings per share (Heps) for continuing operations for the year to end-March to be 95%- 105% higher at 561.8c-590.6c.
Adjusted Heps exclude the R451m after-tax earnings’ effect of the conversion of the Telkom Retirement Fund to a defined contribution fund, and restructuring costs of R117m as previously disclosed and included in the half-year results, the group said in a further trading statement.
The trading update sent shares soaring during the morning trading session on Monday. By 2.28pm, the share was 4.78% firmer at R40.82. This adds to gains that have seen the stock rise almost 22% so far in 2025.
Basic earnings per share for total operations were expected to be up to 300% higher, while Heps for total operations were expected to be 40%-50% higher, the main difference being the estimated R4.3bn after-tax profit made on the disposal of Swiftnet, which was included as part of discontinued operations.
Telkom said previously that the Swiftnet disposal was closed on March 17 and the provisional consideration received in cash amounted to R6.575bn, pushing up earnings.
The group sold Swiftnet to a consortium consisting of an infrastructure fund managed by a subsidiary of Actis and an infrastructure vehicle 100%-owned by Royal Bafokeng Holdings.
In December, the Independent Communications Authority of SA (Icasa) gave Telkom the green light for the disposal. The Competition Commission and shareholders had already approved the transaction.
Swiftnet owns and operates about 3,900 commercially viable masts and towers in SA.
By market close Telkom’s share price was up 3.75% to R40.40.
Telkom is due to release its financial results on June 10.
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