JSE-listed Telkom on Wednesday said it expects a triple-digit increase in its basic earnings per share (BEPS) and headline earnings per share (HEPS) for the year ended March 31, 2024.

This is attributed to a stronger operational performance driven by continued demand for next-generation technologies, the revenues of which increased 7% to comprise almost 80% of total group revenue, along with cost-optimisation initiatives.

In a trading update published on the Stock Exchange News Service, the group said that its reported BEPS would increase between 114% and 124% to between 281.1c and 486.1c apiece during the year under review.

On a normalised basis, BEPS will increase to between 383.5c and 390.6c, representing an increase of between 440% and 450%.

The company’s expects to report HEPS of 374.6c to 378.2c, equating to an increase of between 1 155% and 1 165% on the restated headline loss a share of 35.5c in 2023.

Normalised HEPS are expected to be 195% to 205% more year-on-year at between 368.2c and 380.6c.

“The difference between BEPS and HEPS is largely owing to the net impact of write-offs of assets as well as profit/loss on sale of assets for the 2024 financial year,” Telkom said in its statement.

Normalised BEPS in the prior year excluded the one-off restructuring costs of R1.65-billion and the related tax impact of R288-million, together with the one-off impairment charge of R13-billion and the related tax impact of R3.47-billion, while normalised HEPS for the prior year exclude the one-off restructuring costs of R1.65-billion and the related tax impact of R288-million.

Reported earnings before interest, taxes, depreciation and amortisation (Ebitda) increased about 18%, while normalised Ebitda grew in line with guidance at about 5%.

“Growth in earnings has also been positively impacted by lower depreciation and write-offs in the 2024 financial after asset impairments recognised in 2023. This growth was partially offset by higher net finance charges and foreign exchange and fair value movements in 2024,” Telkom said.

Total depreciation and amortisation for property, plant and equipment and intangible assets decreased 23% from R7.15-billion in the prior year, while write-offs of property, plant and equipment and intangible assets reduced to about R80-million from R13.51-billion in write-offs and impairments of property, plant and equipment and intangible assets in the prior year.

Net finance charges and fair value movements increased by 47% from R1.49-billion in the prior year, largely owing to higher lending rates during the year.

Telkom will publish its financial results for the 2024 financial year on June 18.