We also made progress on the sale of non-core assets during the quarter.
The results exclude voluntary early retirement and severance packages and includes operating results of our newly acquired subsidiary, Business Connexion (BCX).
We remain conservatively geared with a net debt to EBITDA ratio of approximately 0.3 times.
We have made progress in migrating from our legacy to the next generation network and have subsequently seen a slower decline of leased line revenues with growth in data connectivity products and services.
In accordance with paragraph 4.27 of the JSE Debt Listings Requirements, noteholders are hereby advised of the amendment to Telkom? s expectation of weaker market conditions for Telkom. s expectation that the Company's liquidity will remain at an adequate level. Shareholders are advised that Telkom will shortly start the process to procure external audit services for the financial year commencing 1 April 2018. She added that Telkom now has a better standing to seek growth objectives "in a more flexible and agile manner".
The reported headline earnings per share (HEPS) and basic earnings per share (BEPS) are expected to decrease between 15% and 25% when compared to the prior year.
Against this backdrop, we prioritised our capital expenditure programme to focus on the growth areas of fibre and LTE.
We have extended our debt maturity profile by raising a R1 billion term loan.
Financial overview The economic and operating environment has deteriorated driven by lower commodity prices and a weakening Rand.
The outlook remains challenging on the back of lower growth expectations, higher interest rates and rising inflation.