Telkom Reports Results

Telkom SA today announced group annual results for the year ended March 31, 2006

June 5, 2006

1 Min Read

NEW YORK -- Telkom SA, the largest communication group in South Africa, today announced group annual results for the year ended March 31, 2006. The Group delivered a strong performance across both business segments primarily as a result of continued growth in the fixed-line and mobile business and cost reductions in the former.

The Group also declared a higher ordinary annual dividend of 500 cents per share on June 2, 2006 and a special dividend of 400 cents per share, payable on July 14, 2006 for shareholders registered on July 7, 2006.

Telkom CEO, Papi Molotsane, said: "The Telkom group has delivered another strong set of results with headline earnings per share growth of 36.1% to 1740.5 cents per share. The fixed-line business performance was driven mainly from revenue growth of 4.1% and a decrease in operating expenses of 3.2%. The mobile business contributed with customer growth of 11.8 million gross connections"

Molotsane added that Telkom stood at an important point in its development in an industry undergoing fundamental changes.

"Our customers require increasingly sophisticated products and services as technologies converge and the industry worldwide moves to an IP-based operating standard. In view of this, and with greater certainty in the local regulatory dispensation following accelerated liberalisation of the market, management has redefined its strategy to compete across the ICT value chain," Molotsane stated.

Telkom SA Ltd. (NYSE/Johannesburg: TKG)

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