Telkom SA profit tumbles in H1 results
South African fixed line operator Telkom SA has reported an 80% drop in profit for the first half of the year.
Shares totalled at 37.2 cents to the end of September this year, down from 177.8 cents a year earlier.
The company has also been hit with a $55 million regulatory penalty in the same period, which resulted in weaker revenues, after regulators ruled in August that Telkom had used its position in the market to “bully competitors”.
As a result of declining demand for fixed line services across the global marketplace, Telkom is one of many operators posting poor financial results in 2012.
The company has also had to deal with regular departures of top management, but Telkom did say previously it expected, and was prepared for a sharp fall in earnings.
Revenue totalled at $1.9 billion, a slight drop from figures a year earlier. Chief Executive, Nombulelo Moholi, said early November she would stand down next year, becoming the fifth person in her position to leave the company in seven years.
Telkom is 40% state owned directly, and a further 10.5% owned by the state pension fund.