|
|
Group |
Company |
|
31 March
2023
Rm |
31 March
2023
Rm |
Payments to other operators |
(3 328) |
(3 399) |
(2 664) |
(2 964) |
Payments to other operators decreased due to lower roaming traffic costs paid to other operators for Telkom Company. |
|
|
|
|
Group |
Company |
|
Restated1
31 March
2023
Rm |
31 March
2023
Rm |
Cost of handsets, equipment, software and directories |
(6 125) |
(6 341) |
(3 867) |
(4 280) |
Cost of handsets, equipment, software and directories decreased mainly due to lower mobile post-paid sales and higher rebates received. |
|
|
Group |
Company |
|
31 March
2023
Rm |
31 March
2023
Rm |
Sales commission, incentives and logistical costs |
(2 748) |
(2 522) |
(2 748) |
(2 521) |
Sales commission, incentives and logistical costs increased due to higher commissions from growth in the commissionable base and increased
connections via commissionable channels. |
|
|
Group |
Company |
|
31 March
2023
Rm |
31 March
2023
Rm |
Employee expenses |
(7 895) |
(9 292) |
(1 519) |
(3 397) |
Salaries and wages1 |
(6 932) |
(7 665) |
(1 166) |
(2 608) |
Post-retirement pension and retirement fund (refer to notes 10.2 and 10.3)2 |
(481) |
(582) |
(48) |
(200) |
Post-retirement medical aid (refer to note 10.4)3 |
7 |
176 |
7 |
176 |
Post-retirement telephone rebates (refer to note 10.5) |
(39) |
(36) |
(39) |
(36) |
Share-based compensation expense (refer to note 9.2) |
(121) |
(176) |
(36) |
(80) |
Other benefits4 |
(509) |
(1 255) |
(238) |
(764) |
Employee expenses capitalised to capital projects2 |
180 |
246 |
1 |
115 |
|
|
|
|
|
1 |
Salaries and wages for Company decreased mainly due to the Openserve carve-out in the prior financial year. Openserve was a division of Telkom Company for the first five
months of the 2023 financial year. |
2 |
The decrease in Company post-retirement pension and retirement fund and employee expenses capitalised to capital projects is mainly due to Openserve carve-out. In the prior
year, five months of Openserve expense was included in Company. |
3 |
The decrease in post-retirement medical aid is due to curtailment paid by the Company for 31 May 2023 restructuring that was not taken into account in the 31 March 2023
valuation report. |
4 |
Other benefits include, among others, skills development, annual leave, performance incentive, service bonuses, voluntary employee severance/voluntary early retirement and
retrenchment package costs and termination benefits. Included in other benefits for 31 March 2023 were restructuring costs amounting to R1 065 million for Group and
R420 million for Company. The decrease is also due to lower leave pay and training costs compared to the prior year. |
|
|
|
Group |
Company |
|
Restated1
31 March
2023
Rm |
31 March
2023
Rm |
Other expenses |
(2 195) |
(2 324) |
(697) |
(857) |
Sundry expenses2 |
(402) |
(400) |
(36) |
(66) |
Licence fees |
(287) |
(393) |
(207) |
(331) |
Subsistence and travel |
(55) |
(60) |
(15) |
(19) |
Third party service costs |
(927) |
(968) |
(134) |
(118) |
Image building and market research costs |
(73) |
(74) |
(60) |
(71) |
Telephone rebate – Openserve employees |
– |
– |
(17) |
– |
Donations |
(66) |
(55) |
(35) |
(34) |
Losses3 |
(305) |
(314) |
(149) |
(171) |
Other |
(80) |
(60) |
(44) |
(47) |
|
|
|
|
|
1 |
Refer to note 2.7. |
2 |
Sundry expenses include, among others, consumables, membership fees, project fees, stock write-offs, printing and stationery costs. |
3 |
Losses include losses as a result of damages to private property of third-parties, costs of extinguishing fire and excess payments to insurers. |
|
|
|
Group |
Company |
|
31 March
2023
Rm |
31 March
2023
Rm |
Wholesale voice and non-voice services |
– |
(196) |
(5 638) |
(3 574) |
Data connectivity |
– |
(71) |
(3 222) |
(1 922) |
Broadband access |
– |
(8) |
(1 475) |
(878) |
Managed services |
– |
(107) |
(137) |
(100) |
Line rental cost |
– |
(10) |
(804) |
(674) |
|
|
|
|
|
Wholesale voice and non-voice services increased for Company mainly due to Openserve carve-out, in the prior year five months costs were
included as Openserve carve-out happened in September 2022. |
|
|
Group |
Company |
|
Restated1
31 March
2023
Rm |
31 March
2023
Rm |
Maintenance |
(4 842) |
(4 152) |
(2 608) |
(3 241) |
Maintenance costs have increased for the Group due to higher maintenance costs and support contract costs. The decrease for Company is due
to the Openserve carve-out. In the prior year, five months of Openserve costs were included in Company. |
|
|
Group |
Company |
|
Restated1
31 March
2023
Rm |
31 March
2023
Rm |
Service fees |
(3 849) |
(3 870) |
(1 397) |
(2 171) |
Facilities and property management |
(2 443) |
(2 524) |
(715) |
(1 357) |
Consultancy, security and other services |
(1 406) |
(1 346) |
(682) |
(814) |
Audit fees2 |
(82) |
(113) |
(44) |
(76) |
Consultancy services2,3 |
(403) |
(497) |
(97) |
(168) |
Security and other services2 |
(921) |
(736) |
(541) |
(570) |
|
|
|
|
|
1 |
Refer to note 2.7. |
2 |
In the current year, we have disclosed a breakdown of consultancy, security and other services. The change is made to better reflect the nature of the expense. |
3 |
Consultancy services include non-audit fees of R680 000 (31 March 2023: R1.5 million). |
Facilities and property management decreased mainly due to lower diesel refuelling costs for standby generators and lower utility costs. The decrease
in Company is mainly due to the Openserve carve-out. Openserve was part of Telkom Company for the first five months of the 2023 financial year. |
|
|
|
|
Group |
Company |
|
Restated1 31 March
2023
Rm |
31 March
2023
Rm |
Depreciation, amortisation, impairments and write-offs of non-financial assets |
(5 525) |
(20 589) |
(3 125) |
(11 463) |
Depreciation of property, plant and equipment1 |
(3 350) |
(5 092) |
(1 155) |
(3 038) |
Depreciation of right-of-use assets |
(1 463) |
(1 255) |
(1 404) |
(1 439) |
Depreciation of investment property |
– |
– |
(112) |
(55) |
Amortisation of intangible assets |
(632) |
(746) |
(426) |
(577) |
Write-offs of property, plant and equipment and intangible assets2 |
(80) |
(260) |
(28) |
(225) |
Impairment of property, plant and equipment and intangible assets2 |
– |
(13 236) |
– |
(6 129) |
|
|
|
|
|
1 |
Refer to note 2.7. |
2 |
The decrease is mainly due to the impairment recognised in the prior year. |
|
Group |
Company |
The estimated useful lives assigned to groups of property, plant and equipment are: |
Years
2023 |
Years
2023 |
Freehold buildings |
5 to 43 |
5 to 50 |
5 to 40 |
5 to 40 |
Network equipment |
|
|
|
|
Cables |
4 to 30 |
4 to 30 |
4 to 30 |
4 to 30 |
Switching equipment |
5 to 18 |
5 to 18 |
5 to 18 |
5 to 18 |
Transmission equipment |
5 to 20 |
5 to 20 |
5 to 20 |
5 to 20 |
Other |
2 to 20 |
2 to 20 |
2 to 20 |
2 to 20 |
Support equipment |
5 to 12 |
5 to 12 |
5 to 10 |
5 to 10 |
Furniture and office equipment |
10 to 15 |
5 to 15 |
11 to 15 |
11 to 15 |
Data processing equipment and software |
2 to 10 |
5 to 10 |
5 to 10 |
5 to 10 |
Telkom support services equipment |
2 to 20 |
2 to 20 |
2 to 20 |
2 to 20 |
|
Company |
The expected useful lives assigned to investment property are: |
Years
2023 |
Investment property |
5 to 40 |
5 to 40 |
|
Group |
Company |
The expected useful lives assigned to intangible assets are: |
Years
2023 |
Years
2023 |
Software and licences |
5 to 10 |
3 to 10 |
5 to 10 |
5 to 10 |
Trademarks, copyrights and other |
5 to 20 |
5 to 20 |
5 to 20 |
5 to 13 |
During the year, the Group reassessed the useful lives on various property, plant and equipment and intangible assets. The reassessment takes
into account the Group's current capex strategy and changes in the technological environment. The reassessment of useful lives decreased
the depreciation expense by R37 million (31 March 2023: decrease of R98 million) and decreased the amortisation expense by R2 million
(31 March 2023: increase of R133 million) at Company level and decreased the depreciation expense by R143 million (31 March 2023: decrease
of R80 million) and decreased the amortisation expense by R8 million (31 March 2023: decrease of R128 million ) at Group level. With all other
factors remaining constant, depreciation for future periods is expected to increase by R37 million for Company and by R143 million for Group,
and amortisation for future periods is expected to increase by R2 million for Company and R8 million for the Group. Refer to notes 5.1 and 5.2 for
the related accounting policies. |