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South Africa’s Telkom under pressure as shares plummets

South African company, Telkom is facing pressure on its profit margins as its share price falls by more than 30 percent over the last month.

It was gathered that this was a result of poor results and the failure of telecommunication giant, MTN to take over the operator.

The company had earlier warned its stakeholders that there would be a decline in its earnings for the last six months which ended in September 2022.

The operator stated that a drop in reported basic earnings per share and headline earnings per share of between 45% and 55% is anticipated.

Telkom blamed its poor performance on a shift in the mobile subscriber mix as well as higher maintenance and service costs.

The latest share price drop follows a 24% drop in October when MTN announced it had withdrawn from talks to buy Telkom.

MTN allegedly terminated talks because Telkom could not guarantee exclusivity and there were concerns about Competition Commission approvals.

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