Telkom shares shot up on Wednesday as the telco signalled higher full-year earnings to March. Basic EPS from continuing operations is expected to be up to 30% higher than the 566c reported in the prior year. This translates to a 679.2c-735.8c range. HEPS, which strips out the effect of one-off financial events, is expected to be 45%–55% higher than the previous year’s 467.5c. This translates into HEPS from continuing operations of 677.9c-724.6c. The state-affiliated telecoms provider said earnings growth was primarily driven by “a strong underlying operating performance, continued focus on structural cost optimisation and lower finance charges resulting from reduced debt levels”. By 4pm on Wednesday, Telkom shares were up 10.36% at R65.62, adding to gains that have seen the stock rise 65.85% over the past 12 months. The group said earnings from continuing operations were negatively affected by one-off expenses relating to the after-tax derecognition loss of the Telkom Retirement Fund of R451m, or 91.9c per share, and restructuring costs of R117m, or 23.8c per share.Prior-year HEPS excluded the gain on the sale of properties of R654m, much higher than the R194m recorded in the current year.HEPS for total operations is expected to be 45%-55% higher at 677.9c-724.6c, compared with 467.5c in the previous year. The group said earnings for total operations included the gain on the disposal of Swiftnet in the year before, which was disclosed as a discontinued operation. That business was sold in the 2025 financial year. The group is set to release its earnings report on June 2.