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03
Performance
Operating revenue up
9.8%
to R40 970 million
Net revenue up
7.9%
to R31 854 million
EBITDA margin of
26.7%*
Headline earnings
per share (HEPS) up
12.4%*
to 731.4 cents
Annual dividend
increased 56.3% to
422.0 cents
per share
Capex up
43.3%
to R8 654 million
Group chief financial
officer’s report
Financial
capital
* Our performance excludes the R2 193 million and a related tax benefit of R517 million relating to voluntary early retirement packages (VERPs)
and voluntary severance packages (VSPs) in FY2016, and R66 million and a related tax benefit of R13 million FY2017.
Key highlights
Key messages
> We delivered solid results in a difficult environment
> Our Mobile business continued to outperform our expectations,
with a service revenue increasing of 38.4 percent
> Our fixed date business was slightly down 1.1 percent, however
we were encouraged by an increase in next generation and fibre
based products, such as metro-ethernet
> We saw good growth in IT revenue. We expect this to continue
past the integration of BCX with Enterprise, as we offer end-to-
end solutions
> We continued to see the benefits of our ongoing business
transformation. Our Mobile business contributed R660 million to
the group EBITDA improvement for the first time, after four years
of recording losses
> Our group cash balances were negatively impacted by increased
cash flows relating to dividend payments, VSP and VERPS and a
significant capital investment
> We accelerated capex to revenue increasing to 21.1 percent with
specific focus on fibre and mobile as we saw traction in both areas
> We increased our annual dividend by 56.3 percent year-on-year.
Our TSR was 38 percent for the year