Summarised Consolidated income statement

 

For the year ended 31 March
Rm  2016      2015   
Restated1  
  
Revenue  
80 077       74 500      
Direct expenses  
(31 594)      (30 589)     
Staff expenses   (5 557)      (4 836)     
Publicity expenses   (1 986)      (2 008)     
Other operating expenses  
(10 844)      (10 118)     
Black Economic Empowerment (charge)/income   (55)      47      
Depreciation and amortisation  
(8 735)      (7 581)     
Impairment losses   (14)      –      
Net loss from associate and joint venture  
(233)      (180)     
Operating profit  
21 059       19 235      
Finance income   716        346      
Finance costs   (2 196)      (1 737)     
Net (loss)/gain on remeasurement and disposal of financial instruments  
(735)      7      
Profit before tax   18 844       17 851      
Taxation  
(5 934)      (5 341)     
Net profit   12 910       12 510     
Attributable to:              
Equity shareholders     12 917       12 672      
Non-controlling interests  
(7)      (162)     
   12 910       12 510      
   Year ended 31 March    
Rm  2016       2015     
Basic earnings per share 
881      864     
Diluted earnings per share  857      845     

1.

Prior year restatement

  The Group provides financing to customers to acquire handsets at an additional contractual charge in both the direct and indirect distribution channel. In the indirect channel, the Group historically recognised equipment revenue from finance deals on a gross basis with the corresponding cost in direct expenses. This accounting treatment has been revisited, since, in the indirect channel, the Group is not responsible for transferring the handset to the customer and is, therefore, financing the acquisition of the handset by the customer. As a result, the Group has restated its consolidated income statement to reflect only the finance income on these transactions as revenue. This resulted in a decrease in equipment revenue and a corresponding decrease in direct expenses in previous financial years. The restatement has no impact on earnings or earnings per share. The amount of the correction was as follows:

Rm 2015
Restated
 
Revenue (2 833)  
Direct expenses 2 833