Lessons well learnt
A RECENT ANALYSTS’ DAY HOSTED by Telkom demonstrates the value of lessons learnt from past mistakes.
The day was in sharp contrast to a similar event held almost a year ago, in April 2006, at which a lack of clear communication led to more than R6bn being shaved off the market cap in a single trading session. This time round, the share price ended almost flat on the day.
Unlike in the April 2006 presentations, this time Telkom focused not on the numbers, but on the rationale behind and implications of the next generation network that it’s currently building.
Irnest Kaplan, MD of Kaplan Equity Analysts, said the presentations had been very informative.
Although the media weren’t invited, the information was distributed widely via webcast on the Telkom website, as indicated would be the case by an announcement on SENS on the morning of the presentations.
Hosted by recently appointed investor relations head, Nicola White, presenters at the session included senior managers Pierre Marais, the managing executive for network infrastructure provisioning, chief information officer Motlatsi Nzeku and Steven Hayward, the managing executive for retail marketing. The April 2006 presentations included some forecasts (which had been released on SENS that morning), but because they were held days after the start of a closed period, Telkom couldn’t divulge all of the background, thereby frustrating analysts. This time round, Telkom was not yet in a closed period, but neither was there any price-sensitive information it had to skirt around.