Telkom delays results due to Covid-19


Telkom delays results due to Covid-19

Published Date: 2020-05-06 | Source: Stephen Gunnion | Author: Stephen Gunnion

Telkom delays results due to Covid-19

The telecoms group says investors should not draw undue adverse inferences as a result of it making use of the extension.

Telkom says it plans to take advantage of the two-month grace period granted by the Financial Services Board and will postpone the release of its annual results as it tallies up the impact of Covid-19 on its accounts. The fixed line and mobile network operator says investors shouldn't read anything into the delay as the national lockdown has impeded its ability to finalise its results for the year to end-March.

In an update, Telkom said its portfolio of businesses was exposed to all sectors of the economy, including those currently in distress. Following a 40% slide in its share price this year, its market capitalisation had also fallen below its net asset value over the past few months, indicating grounds for impairment testing in line with global reporting standards.

Telkom said it was able to manage a surge in traffic across its fixed and mobile networks due to more customers working from home following its investment in modernising its network, including fibre backhaul. Its mobile footprint capacity had been improved with new sites and increased radio capacity on existing sites. The assignment of additional spectrum, on a temporary basis, would enable it to alleviate congestion in identified sites.

The cost of the group's restructuring process had reduced from approximately R1.5 billion to around R1.2 billion as a result of the postponement of the retrenchments due to the lockdown.

The group now expects to release its results on 22 June. Its shares closed 6.8% higher at R20.76.

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