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Our business
Operating context
Delivering on our strategy
Our governance structure
Administration
Summarised consolidated income statement
for the year ended 31 March
Rm
2017
2016
Revenue
81 278
80 077
Direct expenses
(30 483)
(31 594)
Staff expenses
(5 472)
(5 557)
Publicity expenses
(1 971)
(1 986)
Other operating expenses
(12 193)
(10 844)
Black Economic Empowerment charge
(75)
(55)
Depreciation and amortisation
(9 251)
(8 735)
Impairment losses
(84)
(14)
Net profit/(loss) from associate
and joint venture
1
(233)
Operating profit
21 750
21 059
Finance income
777
716
Finance costs
(2 818)
(2 196)
Net loss on remeasurement and
disposal of financial instruments
(481)
(735)
Profit before tax
19 228
18 844
Taxation
(6 102)
(5 934)
Net profit
13 126
12 910
Attributable to:
Equity shareholders
13 418
12 917
Non-controlling interests
(292)
(7)
13 126
12 910
Cents
2017
2016
Basic earnings per share
915
881
Diluted earnings per share
886
857
Revenue increased 1.5% (3.4%*) boosted by strong
growth in data and enterprise, however, impacted by
foreign currency volatility, customer registration
processes in the International operations and lower
equipment sales in South Africa.
Total expenses increased 0.3% below revenue growth
of 1.5%, aided by cost-savings initiatives offsetting
higher inflationary costs, site growth and negative
foreign currency impacts.
Included is a net foreign exchange loss of
R331 million (2016: R383 million gain).
Investment in Helios transferred during the prior year
to non-current assets held for sale.
Taxation is 2.8% higher driven by increased profitability.
Non-controlling interests allocation increased
by R285 million, mainly due to a weaker performance
in the DRC.
Basic earnings per share increased 3.9% supported by
a strong contribution from operating profit which
benefited from a prior year non-recurring loss from
HTT and restructuring costs. This, together with the
higher allocation of losses to non-controlling interests,
were partly offset by higher net finance costs and tax.
Net finance costs increased R561 million due
to higher average debt and an average 1.0ppt
increase in JIBAR.
The R254 million decline resulted from the
FEC market to market revaluation loss in 2016
changing to a gain in 2017, partly offset by increased
foreign exchange losses on intergroup loans.