Telkom completes Swiftnet disposal; earnings to surge

TELKOM SA SOC LIMITED (JSE:TKG) has successfully closed the disposal of its Swiftnet SOC Limited business, which houses its masts and towers infrastructure, to a consortium comprising an infrastructure fund managed by Actis LLP and an infrastructure vehicle owned by Royal Bafokeng Holdings. All suspensive conditions have been met, paving the way for the completion of the deal. The provisional cash consideration received amounted to ZAR6.575bn. As a result of this disposal, Telkom anticipates a significant increase in both basic earnings per share (BEPS) and headline earnings per share (HEPS) for the year ended March 31, 2025. Basic earnings per share are expected to increase by at least 300% to 1,542.0c, compared to 385.5c in the previous year, while headline earnings per share are expected to increase by a minimum of 10.0% to 413.6c, up from 376.0c. While the increase in reported earnings is primarily due to the profit realized from the Swiftnet sale, a non-recurring item, the financial information has not been reviewed by the Group's auditors yet. Telkom expects to release its FY2025 annual results on or about June 10, 2025.