Telkom celebrates first anniversary as a listed company

JOHANNESBURG (03/04/2004) - Telkom SA is celebrating its first anniversary as a listed company on the JSE Securities Exchange SA and the New York Stock Exchange (NYSE) Thursday. According to the company, Telkom's shares listed at R28 (US$4.10) a share on the JSE Securities Exchange during its initial public offering (IPO) a year ago.

"As part of the SA Government's restructuring program, the company encouraged participation by previously disadvantaged South Africans.

"This resulted in 60,582 individuals purchasing shares, and 445 stokvels investing in Telkom at R22.40 per share under the discounted Khulisa share offer. A further 42,585 retail and institutional investors bought Telkom shares under the general offer of R26.60 a share," notes Telkom CEO, Sizwe Nxasana.

"Telkom shares are currently trading at approximately R70, with retail shareholders now accounting for 9 percent and Khulisa shareholders for 3 percent of the freefloat. Less than 10 percent of Khulisa shareholders have sold since the IPO.

"Revenue growth in selected markets has been attributed to the expansion of integrated product and service offerings, and profitability and cash flows have been increased through strict cost discipline and debt reduction," says Nxasana.

"We have seen high customer growth in our mobile business, as well as the margin expansion and strong growth of cash generation in the fixed-line business," he concludes.

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