3. Performance
3.5 Earnings and dividends per share
 

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    31 March  
2024  
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
2024
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 
2024 
31 March 
2023 
Number of 
shares 
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 operations

Reconciliation between earnings/(loss) and headline earnings/(loss): 
Gross 
Rm 
Net 
Rm 
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)