CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

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

This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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