Our business
Our performance
Governance review
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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 |