TELKOM reported a drop in attributable earnings and share prices, and an increase in operating costs, on Thursday. Its attributable income for the year ended March was R2,3-billion, R0,2-billion less than the previous year. Dividends per share are at 59,5c from 98,1c per share last year. There has been a sharp increase in net operating cost, rising R3,5-billion to R18,4-billion. Chief executive officer Sizwe Nxasana blamed Telkom’s performance partly on poor economic conditions. He attributed the rise in operating cost to new investment in infrastructure — “network rehabilitation” — which he said had been neglected in previous years. He said maintenance and repair work has already improved reliability and efficiency. Telkom modernised more than half a million telephone lines during the course of the finanicial year and added more than 502000 new lines to its network.