TeleMasters flags higher earnings

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TeleMasters flags higher earnings

Published Date: 2020-03-19 | Source: Stephen Gunnion | Author: Stephen Gunnion

TeleMasters flags higher earnings

The telecommunications solutions company credits a debt recovery for the improvement.

TeleMasters has prepared shareholders for a big rise in first-half earnings after recovering a debt that was previously written off.

In a trading statement, the telecommunications solutions company said earnings and headline earnings per share for the six months to end-December were likely to come in at 3.9c. That's 191% higher than the 1.34c it reported a year ago. It said the improvement was largely due to the recovery of R1.7 million of debt that was previously provided for as credit losses.

The group provided no detail on its first-half performance but has been restructuring its business to drive more customers to the 'cloud' as part of its transformation into a next generation player. That resulted in a decline in revenue last year as GSM Sim Card technology customers moved away from the platform and cancelled existing contracts.

Telemasters believes its new Unified Communications product suite is set to change the way its customers do business. It also continues to investigate opportunities for diversification and growth in the sector, including the acquisition of complementary businesses and renewed focus on its marketing strategy.

Its shares closed unchanged at 69c yesterday in a single trade.





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