Lessons well learnt

Finweek English Edition - - Openers - BELINDA AN­DER­SON

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.

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