TeleMasters Holdings Limited (JSE:TLM) News - Trading Statement

TELEMASTERS HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration number 2006/015734/06
Share code: TLM & ISIN Number: ZAE000093324
(“TeleMasters” or “the Company” or “the Group”)

FINAL TRADING STATEMENT

In terms of paragraph 3.4(b)(i) of the Listings Requirements of the JSE Limited, listed companies
are required to publish a trading statement as soon as they become reasonably certain that
the financial results for the period to be reported on next will differ by at least 20% from those
of the previous corresponding period or from a profit forecast previously provided to the market
in relation to such period.

Shareholders are referred to the initial trading statement published on 28 February 2022 and
are advised that the Board is now reasonably certain that the Company will report a loss per
share (“LPS”) and headline loss per share (“HLPS”) of (1.68) cents per share, reflecting a
deterioration of more than 100% when compared to the LPS and HLPS of (0.11) cents for the
six-month period ended 31 December 2020.

As previously advised, the Company’s operational performance during the period under
review continued to be impacted by a reduction in revenues earned from lower variable
usage services incurred by customers because of the ongoing ‘Work from Home’ environment
associated with the COVID-19 disaster regulations. The impact of lower usage was partly offset
by growth in data revenue. Management has taken various strategic and operational
decisions to address this, including an increase in its remote data storage offerings through the
acquisition of the remaining 74% of ConexLink (Pty) Ltd (renamed Ultra Data Centre (Pty) Ltd
(“Ultra DC”) with effect from 1 April 2021, as well as an increased focus on cost controls, which
have resulted in an improvement in the gross profit margin and reduced operational costs.

While consolidation of Ultra DC for the full 6-month period has led to substantial increases in
finance costs and depreciation, the long lead times associated with the data centre revenue
cycle has meant that expected improvements in revenues have not yet been realised.
Management is, however, cautiously optimistic that the continued opening up of the economy
may result in a steady change in the rate at which business decisions are taken and that the
risk taken with the acquisition of a specialised data centre provider during a subdued
economic period may start yielding expected benefits associated therewith.

The financial information on which this trading statement is based has not been reviewed and
reported on by the Company’s auditors. It is anticipated that the financial results for the six
months ended 31 December 2021 will be published on or about 31 March 2022.

Waterfall City
28 March 2022

Designated Advisor
AcaciaCap Advisors Proprietary Limited

Date: 28-03-2022 01:50:00
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