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Summary of material accounting policies
Basic earnings per share
Earnings per share is calculated using the weighted average number of ordinary shares in issue during the period and is based on the profit after tax attributable to ordinary shareholders. For the purpose of calculating earnings per share, treasury shares are deducted from the number of ordinary shares in issue.
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares and is based on the net profit attributable to ordinary shareholders.
Headline earnings per share
Headline earnings per share is calculated using the weighted average number of ordinary shares in issue during the period and is based on the earnings attributable to ordinary shareholders, after excluding those items as required by Circular 1/2023 Headline Earnings issued by the South African Institute of Chartered Accountants and as required by the JSE Ltd.
|
Group |
Earnings per share |
Restated1
31 March
2023 |
Continuing operations |
|
|
Basic earnings/(loss) per share (cents) |
297.8 |
(2 120.2) |
Diluted earnings/(loss) per share (cents) |
291.0 |
(2 120.2) |
Headline earnings/(loss) per share (cents)2,3 |
288.1 |
(99.3) |
Diluted headline earnings/(loss) per share (cents)2,3 |
281.6 |
(99.3) |
|
Group |
Discontinued operation |
31 March
2023 |
Basic earnings per share (cents) |
87.7 |
61.3 |
Diluted earnings per share (cents) |
85.7 |
61.3 |
Headline earnings per share (cents)2 |
87.9 |
63.8 |
Diluted headline earnings per share (cents)2 |
85.9 |
63.8 |
1 |
Refer to note 2.7 |
2 |
The disclosure of headline earnings is a requirement of the JSE Listings Requirements. It has been calculated in accordance with the South African Institute of Chartered
Accountants' Circular 1/2023 issued in this regard as well as the relevant requirements of IAS 33. |
3 |
Headline earnings has been restated for the prior period error which impacted headline and diluted headline earnings per share. The “As previously reported” column below takes
into account the restatement of the discontinued operation as referred to in footnote 1. |
Reconciliation of weighted average number of ordinary shares: |
Group |
31 March
2023 |
Number of
shares |
Weighted ordinary shares in issue |
511 140 239 |
511 140 239 |
Weighted average number of treasury shares |
(24 235 611) |
(26 755 821) |
Weighted average number of shares outstanding |
486 904 628 |
484 384 418 |
Reconciliation of diluted weighted average number of ordinary shares: |
|
|
Weighted average number of shares outstanding |
486 904 628 |
484 384 418 |
Expected future vesting of shares related to Group share scheme incentive plans1 |
11 350 936 |
– |
Diluted weighted average number of shares outstanding |
498 255 564 |
484 384 418 |
1 |
In the prior year, the expected future vesting of shares amounting to 18.7 million, related to Group share scheme incentive plans, had not been taken into account due to the loss for the year causing it to be anti-dilutive. |
|
31 March 2024 |
Restated 31 March 2023 |
Continuing operationsReconciliation between earnings/(loss) and headline earnings/(loss): |
Gross
Rm |
Net
Rm |
Profit/(loss) for the year |
|
1 454 |
|
(10 268) |
Non-controlling interests |
|
(4) |
|
(2) |
Profit/(loss) attributable to owners of Telkom |
|
1 450 |
|
(10 270) |
Profit on disposal of property, plant and equipment and intangible assets |
(81) |
(110) |
(64) |
(85) |
Impairment of property, plant and equipment and intangible assets |
– |
– |
13 236 |
9 679 |
Write-offs of property, plant and equipment and intangible assets |
80 |
63 |
260 |
195 |
Headline earnings/(loss) |
|
1 403 |
|
(481) |
Discontinued operation |
|
|
|
|
Profit for the year |
|
427 |
|
297 |
Write-offs of property, plant and equipment and intangible assets |
1 |
1 |
12 |
12 |
Headline earnings |
|
428 |
|
309 |
Restatement of prior period error
The impact of this restatement, as referred to in note 2.3.2, on the aggregated amounts previously disclosed were:
|
Group
As at 31 March 2023 |
Continuing operations
Reconciliation between earnings/(loss) and headline earnings/(loss): |
As previously
reported3
Rm |
Restatement
Rm |
Restated
Rm |
Loss for the year (as previously reported) |
(9 971) |
– |
(9 971) |
Loss for the year from continued operations |
(10 268) |
– |
(10 268) |
Non-controlling interests |
(2) |
– |
(2) |
Loss attributable to owners of Telkom |
(10 270) |
– |
(10 270) |
Profit on disposal of property, plant and equipment and intangible assets |
(64) |
(21) |
(85) |
Impairments of property, plant and equipment and intangible assets |
9 662 |
17 |
9 679 |
Write-offs of property, plant and equipment and intangible assets |
250 |
(55) |
195 |
Headline loss |
(422) |
(59) |
(481) |
|
|
|
|
Discontinued operations
Reconciliation between earnings/(loss) and headline earnings/(loss): |
|
|
|
Profit for the period |
297 |
– |
297 |
Write-offs of property, plant and equipment and intangible assets |
– |
12 |
12 |
Headline earnings |
297 |
12 |
309 |
|
|
|
|
Headline (loss)/earnings per share (cents) |
Cents |
Continuing operations |
(87.1) |
(12.2) |
(99.3) |
Discontinued operation |
61.3 |
2.5 |
63.8 |
Total headline loss |
(25.8) |
(9.7) |
(35.5) |
|
|
|
|
Diluted headline (loss)/earnings per share (cents) |
|
|
|
Continuing operations |
(87.1) |
(12.2) |
(99.3) |
Discontinued operation |
61.3 |
2.5 |
63.8 |
Total headline loss |
(25.8) |
(9.7) |
(35.5) |
|