South Africa's Telkom predicts 20% profit drop
South Africa’s Telkom predicts 20% profit dropAfrica's largest integrated communications company Telkom has warned of a drop in profit for the year to March as it battles against tougher competition from mobile and broadband companies.
Headline earnings per share will be at least 20 percent lower, the South Africa-based company said in a statement on Monday.
Last year, South Africa's Communications Minister Dina Pule was tasked with turning Telkom, almost 40 percent owned by the South African government, around after the Cabinet rejected to a bid by South Korean telecommunications company KT Corp to buy 20 percent of the company.
Last month, Telkom appointed Sipho Maseko, a former MD at rival telecommunications group Vodacom, as its new CEO. He replaced Nombulelo Moholi.
Mr Maseko left Vodacom last June, less than a year after taking on the role of MD. He also served as chief operating officer for the group.
Telkom also recently announced a fresh round of retrenchments and early retirements in a bid to cut costs.
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