SA’s Telkom’s turnaround winning over investors

Investors gave thumbs up to the completion of the three year turnaround at South Africa’s Telkom, with the stock surging on Monday early trade after the company published a good sets of 2016 full year financial results.

The stock surge 7.07% at R64.24 by 10:07am on Monday, pushing the company’s market value to R32 billion on the Johannesburg bourse.

The shares have risen 298% in the past three years since the company started its turnaround plan in 2013.

The South African-based telco reported on Monday morning that operating revenue rose by 14% to R37 billion in the year to end-March 2016. For the full-year, Telkom reported that normalised headline earnings per share  – South Africa’s main profit gauge – climbed by 15.5% to 658 cents, while earnings before interest, tax, depreciation and amortisation (EBITDA) was up 16% to R11 billion.

The company also rewarded investors with second dividend to thank them for their patience while the business was being fixed. Telkom declared a 270 cents dividend, up by 10% compared to 2015.

Watch below Maseko delivering a message about Telkom’s financial results


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