| 4. | Revenue | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4.1 | Disaggregation of revenue | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Refer to note 3 for the disaggregated revenue per segment for the Group. Included in Telkom Company revenue is revenue, to the value of R9 471 million (31 March 2019: R10 658 million), which relates to Enterprise customer contracts which were sold to BCX in previous financial years, which have been retained in the name of Telkom SA SOC Ltd. Refer to note 2.5.6.5 for the significant judgements and estimates considered in determining that Telkom is the principal in relation to these transactions. |
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| 4.2 | Transaction price allocated to the remaining performance obligations | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The tables below include revenue expected to be recognised in the future, related to performance obligations that are unsatisfied (or partially unsatisfied) at the reporting date.
All revenue from contracts with customers is included in the amounts presented above. The Group and Company apply the practical expedient in paragraph 121 of IFRS 15 and does not disclose information about remaining performance obligations that have original expected durations of one year or less. |
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| 4.3 | Customer relationship periods | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The customer relationship periods (CRP) in the current financial year are determined as follows:
The average customer relationship period in respect of non-voice changed from 5.5 years to 4 years in March 2020. The voice CRP changed from 6.5 years to 5 years in March 2020. This is a change in an accounting estimate in terms of IAS 8 and accounted for prospectively. The change in the CRP resulted in an accelerated rate of deferred installation revenue recognition with the effect being an increase in revenue of R32 million in the 2020 financial year. Revenue recognition in respect of deferred installation fees for the future periods is expected to decrease by R32 million due to these changes in accounting estimates. |
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| 4.4 | Impact of COVID-19 on revenue | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
There was no significant impact of COVID-19 on mobile revenue, as the telecommunications industry was declared as an essential service in South Africa which thus allowed the Group to continue to connect South Africans during the national lockdown period. This contributed to the Group experiencing a surge in fixed and mobile network traffic for telco services from people working from home. There were no significant contract modifications that took place and both new and existing contracts were assessed to be still enforceable at the end of the reporting date. The Group’s fixed and IT services revenue has been impacted by COVID-19 post the reporting date. Even though the telecommunications and IT industries were declared essential services in South Africa which has allowed the Group to continue to connect businesses during the national lockdown period, working from home has resulted in a decrease in fixed data and voice usage. The Group’s IT business has seen a decrease in project-related revenue, as companies have been re-evaluating and deferring their IT capital expenditure. IT services revenue streams have also been at lower levels than budgeted owing to a reduction in the levels of services that were possible during the lockdown period. The realisation of new revenue has been lower than budgeted as engagement with customers were not at the expected levels during the lockdown period. |
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