On The Money - In Brief
- Telkom South Africa looks set to lose out on revenue streams as the Independent Communications Authority of SA (Icasa), in a consultative document, proposes price cuts for a period of time. The document proposes that the revised price control regulations should include a provision requiring Telkom to file a new set of price adjustments. The adjustments should reflect the average price reduction at the new proposed rate of 4 percent below the rate of inflation for the price control until December 31.
- Nevertheless Telkom SA reported operating profits ZAR5.18 billion (USD842 million) for the six months to 30 September 2004, a rise of more than 19% over the same period of 2003, as total revenues grew by 7.4% to ZAR21.52 billion (USD3.5 billion). As a result the company said headline earnings per share soared by 60% to 536.9 cents, from 335.9 cents a year ago. Strong operating revenues enabled the company to reduce its net debts by ZAR2.3 billion, as well as allowing it to spend ZAR1.69 billion repurchasing Telkom shares. Group capital expenditure for the six months reached ZAR2.075 billion.
- Telecom Egypt announced 1H FY04 results ending June, in which net income expanded 15% to LE607.5 million compared to LE524.7 million realized in the first half of last year. Total revenues increased 13% to LE3.8 billion versus a previous LE3.3 billion, while EBITDA increased 22% to LE2.2 billion, reflecting an EBITDA margin expansion to 57% compared to 54% in 1H FY03.