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05
Group financial statements
Notes to the condensed consolidated
annual financial statements
– continued
for the year ended 31 March 2017
6 Taxation expense
2017
Rm
Restated
2016
Rm
Taxation expense
691
538
Normal company taxation
713
574
Deferred taxation
(50)
(15)
Withholding tax
4
1
Common control transaction
24
(22)
The tax expense increased in the current financial year as a result of higher group profit.
7 Earnings per share
2017
Rm
Restated
2016
Rm
Total operations
Basic earnings per share (cents)
738.8
432.4
Diluted earnings per share (cents)
724.1
425.8
Headline earnings per share (cents)
721.1
323.0
Diluted headline earnings per share (cents)
706.8
318.1
Reconciliation of weighted average number
of ordinary shares:
Number of
shares
Number of
shares
Ordinary shares in issue
526 948 700
526 948 700
Weighted average number of shares held by subsidiaries and in escrow
(12 994 315)
(15 791 240)
Weighted average number of shares outstanding
513 954 385
511 157 460
Reconciliation of diluted weighted average number
of ordinary shares
Weighted average number of shares outstanding
513 954 385
511 157 460
Expected future vesting of shares
10 416 531
7 808 223
Diluted weighted average number of shares outstanding
524 370 916
518 965 683
Reconciliation between earnings and headline earnings:
Rm
Rm
Profit for the year
3 854
2 321
Non-controlling interests
(57)
(111)
Profit attributable to owners ofTelkom
3 797
2 210
Profit on disposal of property, plant and equipment and intangible assets
(217)
(704)
Write-offs of property, plant and equipment and intangible assets
143
170
Taxation effects
(17)
(25)
Headline earnings
3 706
1 651
*
Dividend per share (cents)
The calculation of dividend per share is based on dividends of R1 422 million declared on 4 July 2016 and R692 million declared on
11 November 2016 (FY2016: R1 291 million). 526 948 700 ordinary shares were outstanding on the date of the dividend declaration
(FY2016: 526 948 700).
* Refer to note 2.3.