Notes to the consolidated annual financial statements l Note 10

10 Earnings per share     Group     
      2017       2016   
Total operations                   
Basic earnings per share (cents)    738.8        432.4    
The calculation of earnings per share is based on a profit attributable to equity holders of Telkom for the year of R3 797 million (2016: R2 210 million) and 513 954 385 (2016: 511 157 460) weighted average number of ordinary shares in issue.                   
Diluted earnings per share (cents)    724.1        425.8    
The calculation of diluted earnings per share is based on a profit attributable to equity holders of Telkom for the year of R3 797 million (2016: R2 210 million) and 524 370 916 (2016: 518 965 683) diluted weighted average number of ordinary shares in issue. The adjustment in the weighted average number of shares is as a result of the expected future vesting of shares already allocated to employees under the Telkom group Share Plan.                   
Headline earnings per share (cents)*     721.1        323.0    
The calculation of headline earnings per share is based on headline earnings of R3 706 million (2016: R1 651 million) and 513 954 385 (2016: 511 157 460) weighted average number of ordinary shares in issue.                   
Diluted headline earnings per share (cents)*     706.7        318.1    
The calculation of diluted headline earnings per share is based on headline earnings of R3 706 million (2016: R1 651 million) and 524 370 916 (2016: 518 965 683) diluted weighted average number of ordinary shares in issue. The adjustment in the weighted average number of shares is as a result of the expected future vesting of shares already allocated to employees under the Telkom group Share Plan.                   
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 treasury shares     (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    
* The disclosure of headline earnings is a requirement of the JSE Limited and is not a recognised measure under IFRS. It has been calculated in accordance with the South African Institute of Chartered Accountants' circular 2/2015 issued in this regard.                   
Total operations                   
Reconciliation between earnings and headline earnings:     Rm        Rm    
Profit for the year     3 854        2 321    
Non-controlling interest     (57)       (111)   
Profit attributable to owners of Telkom     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 (31 March 2016: R1 291 million). 526 948 700 number of ordinary shares were outstanding on the date of the dividend declarations (31 March 2016: 526 948 700).

 


Notes to the consolidated annual financial statements l Note 10