Telkom's profits have fallen for its 2009 financial year and the group has decided to delist from the New York Stock Exchange, the telecoms giant said on Monday.

The company posted a 45.9 percent fall in full-year headline earnings per share as impairments of assets and the Vodacom transaction which took place in May hammered profits.

Profit decreased by 47.7 percent to R4.170-million in the year ended 31 March 2009, the company added.

Telkom intended to reduce its cost profile by delisting from the New York Stock Exchange.

"Maintaining a listing in the United States is expensive and takes considerable management time," the company said.

Commenting on the results, CEO Reuben September said Telkom's 2009 financial year had been both "challenging" and "very exciting."

"We have succeeded in concluding the Vodacom transaction at an exceptional price, given the market conditions... We have also concluded the sale of our 75 percent stake in Telkom Media to Schenzen Media and taken our holding in Multi-Links, Nigeria up to 100 percent," he added.

Post the year-end, Telkom succeeded in acquiring the business of M-Web Africa, including AFSAT, from the Naspers Group, September noted.

"Our footprint in Africa now covers almost the entire continent, excluding North Africa, providing Telkom with opportunities to extend our services to a very fast growing market."

However, to date, September said initiatives in Africa had been challenging given the high start-up costs, unknown and competitive markets, infrastructure and technology challenges, skills requirements and volatile currency and interest rate markets.

"The financial impact of this on our results is clearly visible in the impairments, foreign exchange losses and negative fair value effects we have had to recognise in the year."

September said he believed Telkom was, however, still well positioned to capitalise on opportunities in Africa.

The telecoms giant paid an ordinary dividend of 115 cents per share and a special dividend of 260 cents per share.

This cheered the market and Telkom's shares rose over three percent to R36.10 in Monday afternoon trading on the JSE.

Sapa

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