'WE TOLD YOU TELKOM WILL LOSE MONEY'
COSATU said yesterday it felt vindicated when Telkom announced that its profits had fallen, so much so that the state-owned telecommunications giant has decided to delist from the New York Stock Exchange.
Cosatu president S'dumo Dlamini said the labour federation's argument that selling off Telkom's 15percent shareholding in Vodacom for R22billion to British cellphone giant Vodafone would result in loss of profits and ultimately loss of jobs has been proven to be correct.
"We cannot stand and shout and say we have been vindicated when jobs are clearly at risk here.
"But the report confirms our reasoning that reducing Telkom's shareholding in Vodacom would result in job losses."
Yesterday Telkom chief executive Reuben September said Telkom's profits for the 2009 financial year had plummeted, forcing the company to delist from the NYSE.
The company posted a 45,9percent fall in full-year headline earnings per share as impairment of assets and the Vodacom transaction hammered profits.
Profit decreased by 47,7percent to R4,170million in the year ended March 31, the company added.
"Maintaining a listing in the US is expensive and takes considerable management time," the company said.
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 75percent stake in Telkom Media and taken our holding in Multi-Links, Nigeria, up to 100percent," he said.