The deferred revenue balance consists primarily of deferred installation fees and revenue billed in advance due to Telkom’s various billing cycles.

Deferred revenue recognised at the beginning of the year

At the end of the prior year, R1 396 million (31 March 2019: R1 597 million) for Group and R1 338 million (31 March 2019: R1 510 million) for Company, was recognised as a current liability. The total revenue recognised in the current year which related to carried forward deferred revenue associated to installation fee revenue and revenue billed in advance is disclosed in the table below. The closing balance represents new contracts entered into where the performance obligations have not yet been met at year end. The amounts recognised as a contract liability will generally be utilised within the next reporting period.