Telkom SA SOC Limited
Registration number 1991/005476/30
JSE share code: TKG
JSE bond code: BITEL
ISIN: ZAE000044897
("Telkom" or the “Group”)


TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
Shareholders are advised that Telkom is finalising its interim results for the six months ended
30 September 2023 (“H1 FY2024” or “the period”), which are scheduled to be released on the Stock
Exchange News Service (“SENS”) of the JSE Limited (“JSE”) on or about 21 November 2023.
In accordance with paragraph 3.4(b) of the JSE Listings Requirements, shareholders are advised that
reported basic earnings per share (“BEPS”) and headline earnings per share (“HEPS”) for the period are
expected to increase by more than 20% when compared to BEPS and the restated HEPS for the six
months ended 30 September 2022 (“the prior period”). The anticipated changes in BEPS and HEPS for
the period are as follows:


                          Six months                                Six months
                             ended                                    ended
                      30 September 2022                         30 September 2023
                     Reported      Restated                                             Expected
                                                     Expected          Expected
                     earnings      earnings                                             increase
                                                     earnings          increase
                    (cents per    (cents per                                           (cents per
                                                 (cents per share)        (%)
                      share)        share)                                               share)
 BEPS                 131.6c                      190.8c to 204.0c     45%-55%        59.2c to 72.4c

 HEPS
                                     132.9c       186.1c to 199.4c     40%-50%        53.2c to 66.5c
 Restated

 HEPS
                      137.2c                      185.2c to 198.9c     35%-45%        48.0c to 61.7c
 Reported

The difference between BEPS and HEPS is due to the net impact of impairment of assets and profit/loss
on sale of assets.
The increase in earnings is due to improved performance by the Group for the period with both revenue
and EBITDA growth within guidance provided at the annual financial results presentation for the year
ended 31 March 2023 (“FY2023”).
Growth in earnings has also been positively impacted by lower depreciation after asset impairments
recognised in FY2023. This has been partially offset by higher net finance charges in H1 FY2024 as well
as the non-recurrence of a R102 million gain on foreign exchange and fair value movements recognised
in H1 FY2023.
    •   Total depreciation, amortisation and write-offs decreased by approximately 20% from R3 549
        million in the prior period; and
    •   net finance charges increased by approximately 50% from R655 million in the prior period, largely
        due to lending rate increases as well as a higher net debt balance.

Restatement of the prior period HEPS

On 30 September 2022, the Group correctly calculated and accounted for tax in the Group statement of
profit or loss and other comprehensive income . However, the Group incorrectly adjusted for the headline
earnings, relating to the Profit on disposal and impairment of property, plant and equipment and intangible
assets. This led to a R21 million overstatement of headline earnings and a 4.3c overstatement of HEPS
for period ended 30 September 2022.

The financial information on which this trading statement is based on has not been reviewed or reported
on by Telkom’s external auditor.
The Group's interim results announcement for H1 FY2024 will be accompanied by a presentation in
Sandton on the same day. The presentation will be made available on the Group's website.


Centurion
15 November 2023


Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited