* H1 normalised headline EPS 265.87 cents vs 280.6 cents
* Aims to exit Nigerian mobile business, keep fixed-line
* Shares up 2.8 percent, outperform all-share index
(Adds CEO, analysts comments)
By Gugulakhe Lourie
JOHANNESBURG, Nov 22 (Reuters) - South Africa's Telkom aims to sell its money-losing Nigerian mobile business within the next six months, as it looks to slim down and focus on its new mobile operation at home.
Africa's largest fixed-line operator, which posted a 5 percent drop in first-half profit on Monday, has been looking to exit its Multi-Links mobile business, one of four mobile operators using the CDMA technology platform in a market overwhelmingly dominated by the rival GSM standard.
Telkom recently launched a mobile business in the crowded South African market, where it faces stiff competition from MTN Group, and its former unit Vodacom.
Jeffrey Hedberg, Telkom's acting chief executive, said selling the mobile unit in Nigeria was a top priority.
"There is a clear need to stop the bleeding in the CDMA business, and on the fixed side we are in discussions with other partners; again about increasing country scale and minimising our exposure," he said.
Telkom said it had received a number of expressions of interest for the Nigerian business, which was bought for $330 million three years ago and incurred a 262 million rand ($37.42 million) operating loss in the six months to end-September.
Shares of the company jumped 3 percent, although analysts cautioned that a sale of the unit was not yet a done deal.
"At this point in time they are talking about it, we need to actually see the cash flow arrive before we become too excited," said David Lerche, a telecoms analyst at Avior Research.
TOUGH SALE
One analyst, who declined to be identified, said the Nigerian mobile unit would be tough to sell.
"If you look at performance metrics; it's not a compelling story in a sense that Telkom will get the price it wants," said the analyst.
Telkom said normalised headline earnings per share, which strip out one-time charges, fell to 265.7 cents in the six months to end-September from 280.6 cents a year earlier, at the low end of its own forecast for a drop of up to 20 percent.
At home, Telkom is attempting to offset a decline the decline in revenue from traditional telephony by focusing on its new mobile business.
8.ta, Telkom's mobile phone business, has signed up about 186,033 customers since it was launched on Oct. 15.
At 1015 GMT, Telkom shares were up 3 percent to 37.0 rand, outperforming Johannesburg's All-Share index, which was up 0.7 percent. (Editing by David Dolan and Erica Billingham) ($1=7.002 Rand)