Consolidated summary statement of profit or loss and other comprehensive income

for the year ended 31 March 2020

The summary financial reports on this section should be read in conjunction with the annual financial statements for the year ended 31 March 2020, available online at www.telkom.co.za/ir

  Notes   31 March 2020
Rm		   Restated
31 March1 2019
Rm		  
Revenue 4   43 043   41 774  
   Operating revenue     42 764   41 583  
   Interest revenue2     279   191  
Other income     676   719  
Insurance service result     41   –  
Payments to other operators     (3 683)   (2 940)  
Cost of handsets, equipment, software and directories     (5 625)   (5 220)  
Sales commission, incentives and logistical costs     (2 006)   (1 457)  
Employee expenses 5   (10 713)   (10 777)  
Other expenses 5   (2 688)   (2 003)  
Maintenance 5   (3 880)   (4 209)  
Marketing     (671)   (806)  
Impairment of receivables and contract assets 18   (1 140)   (384)  
Service fees 5   (3 274)   (2 934)  
Lease expenses3 3.3.1   (478)   (1 182)  
EBITDA     9 602   10 581  
Depreciation of property, plant and equipment     (4 868)   (4 842)  
Depreciation of right-of-use assets     (954)   –  
Amortisation of intangible assets     (679)   (702)  
Write-offs, impairments and losses of property, plant and equipment and intangible assets     (414)   (270)  
Operating profit     2 687   4 767  
Investment income     79   185  
Income from associates     11   2  
Net finance charges, hedging costs and fair value movements     (1 803)   (947)  
   Net finance changes on lease liabilities     (368)   –  
   Net finance charges - other     (1 202)   (885)  
   Cost of hedging     (205)   (88)  
   Foreign exchange and fair value movements     (28)   26  
Profit before taxation     974   4 007  
Taxation     (366)   (1 176)  
Profit for the year     608   2 831  
Other comprehensive income            
Items that will be reclassified subsequently to profit or loss            
Exchange gains on translating foreign operations4     65   23  
Items that will not be reclassified to profit or loss            
Defined benefit plan actuarial gains     1 080   1 352  
Income tax relating to other comprehensive income5     (302)   (67)  
Other comprehensive income for the year, net of taxation     843   1 308  
Total comprehensive income for the year     1 451   4 139  
Profit attributable to:            
Owners of Telkom     603   2 795  
Non-controlling interests     5   36  
Profit for the year     608   2 831  
Total comprehensive income attributable to:            
Owners of Telkom     1 446   4 101  
Non-controlling interests     5   38  
Total comprehensive income for the year     1 451   4 139  
Basic earnings per share (cents) 6   121.1   561.9  
Diluted earnings per share (cents) 6   119.5   551.8  
1 Restated. Refer to notes 3.4 and 3.6.
2 Restated. Refer to notes 3.4.1.3.
3 For the year ended 31 March 2020, this amount represents low-value and short-term leases as defined by IFRS 16. The comparative amount represents operating leases as defined by IAS 17.
4 This component of OCI does not attract any tax.
5 Income tax relating to other comprehensive income is not in line with the decrease in the defined benefit gains due to the fact that in FY2019 the tax movement was impacted by the unrecognised deferred tax asset relating to other comprehensive income in FY2018.