Telkom SA SOC share price: FY21 results update and trading view
In the below article we summarize FY20 results from Telkom SA SOC and take a look at how the share price is reacting to the news.
Telkom SA SOC FY21 results
Telkom has posted a strong set of full year results for the period ending 31 March 2021, a summary of which is as follows:
- Fy21 revenue increased to R43,222 million from R43,042 million in FY20
- Full year profit of R2,428 million (from restated R540 million in FY21)
- Headline earnings per share increased to 561.5c in FY21 from 366c in FY20
Group earnings have benefited from continued growth within its mobile business to offset a fall in earnings derived from the groups fixed-line businesses. Telkom’s BCX investment and Information Technology division saw revenue adversely affected by COVID-19 induced lockdown restrictions over the reporting period.
The robust results have however prompted the group to reconsider its dividend offering which is currently suspended for the next three years.
Telkom SA SOC: technical analysis
The share price of Telkom remains in a longer term uptrend. In the short term the price has moved to test resistance at the 4470 level.
Traders respecting the long term uptrend will look to keep a long bias to trades on Telkom. A break above 4470 (confirmed with a close), could be a trigger for long entry with channel resistance at 4940 the initial upside target considered. In this scenario, traders might look to using a close below the 4100 level as a stop loss consideration.
In Summary
- Fy21 revenue increased to R43,222 million from R43,042 million in FY20
- Full year profit of R2,428 million realised (from restated R540 million in FY21)
- Earnings have been supported by the mobile business, to offset weakness in fixed-line services
- The Information Technology division (including BCX investment) was adversely affected by lockdowns in South Africa
- The group’s is contemplating reinstating a dividend, although dividends remain suspended for the time being
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