| |
The Group Executive Committee (Exco) is the Group's chief operating decision maker (CODM). Management has determined the operating segments based on the reports reviewed by Exco that are used to make strategic decisions, allocate resources and assess the performance of each reportable segment.
The operating segments' classification is based on the business units through which Telkom provides communications products and services via its customer-facing units, namely Telkom Consumer and Small and Medium Business (SMB), as well as its subsidiaries, BCX and Openserve. The customer-facing units are supported by the Corporate Centre and Gyro.
In the current year, the reportable segments have been determined as Openserve, Telkom Consumer, BCX and "Other".
Due to the sale of Swiftnet in the prior year, the "Gyro" segment is no longer a reportable segment in the current year and has been aggregated into the "Other" segment as it shares similar economic characteristics with the "Other" segment. Gyro provides support to customer-facing units and its internal customers, and its services are similar to those offered by functions included in the "Other" segment.
In the prior year, Swiftnet and Gyro were included within the "Gyro" segment. Due to the change in the organisational structure, the 31 March 2025 segment information has been restated to include Gyro within the "Other" segment while Swiftnet continues to be included within the "Gyro" segment. The "Gyro" segment for the prior year therefore includes the results of Swiftnet only. This approach ensures comparability between the current and prior years.
The SMB segment is aggregated into the Telkom Consumer segment. The aggregation is based on the similarity in the nature of products and services. SMB customers include primarily sole proprietors and customers who typically consume simple products and are similar to the product nature and customer profiling within the Telkom Consumer segment. A large portion of the SMB customer base makes use of the Telkom Direct Stores channel, which is the same channel as that of the Telkom Consumer customers.
EBITDA is defined as earnings before investment income and finance cost (which includes gains and losses on foreign exchange transactions), tax, depreciation, amortisation, write-offs, impairments and losses of property, plant and equipment and intangible assets, and is also presented inclusive of the following items:
- Interest revenue
- Interest on overdue accounts
- Interest on finance lease receivables
Interest revenue is included in operating revenue as a separate component of revenue. Interest on overdue accounts and interest on finance lease receivables is included in other income.
The CODM reviews the performance of the operating segments on an adjusted EBITDA basis.
EBITDA is adjusted for significant once-off costs and income, when applicable. The prior year EBITDA was adjusted for the following:
- Restructuring expenses of R160 million;
- Loss on settlement of the TRF of R618 million; and
- Gain on the disposal of Swiftnet of R4 408 million,
There are no significant once-off costs and income adjustments in the current financial year.
In the prior year, Swiftnet was sold effective 31 January 2025, and is presented as a discontinued operation in the Group statement of profit or loss and other comprehensive income for 10 months. The difference on the financial statement line items between the segment and the statement of profit or loss and other comprehensive income relates to Swiftnet. Refer to note 12.3 for details.
| 31 March 2026 |
| Revenue from external customers1 |
5 395 |
28 774 |
10 308 |
— |
— |
— |
44 477 |
| Revenue from contracts with customers recognised over time2 |
4 684 |
25 414 |
8 238 |
— |
— |
— |
38 336 |
| Voice |
— |
4 607 |
1 434 |
— |
— |
— |
6 041 |
| Interconnection |
181 |
503 |
— |
— |
— |
— |
684 |
| Data |
4 503 |
19 717 |
2 378 |
— |
— |
— |
26 598 |
| Information technology services |
— |
— |
3 746 |
— |
— |
— |
3 746 |
| Customer premises equipment related services |
— |
78 |
623 |
— |
— |
— |
701 |
| Interest revenue |
— |
377 |
57 |
— |
— |
— |
434 |
| Sundry revenue |
— |
132 |
— |
— |
— |
— |
132 |
| Revenue from contracts with customers recognised at a point in time |
527 |
2 999 |
2 022 |
— |
— |
— |
5 548 |
| Customer premises equipment |
— |
2 999 |
246 |
— |
— |
— |
3 245 |
| Information technology hardware and software |
— |
— |
1 776 |
— |
— |
— |
1 776 |
| Sundry revenue |
527 |
— |
— |
— |
— |
— |
527 |
| Lease revenue |
184 |
78 |
48 |
— |
— |
— |
310 |
| Insurance revenue |
— |
283 |
— |
— |
— |
— |
283 |
| Intersegmental operating revenue |
7 237 |
106 |
1 104 |
327 |
(8 693) |
(81) |
— |
| Other income |
280 |
686 |
95 |
1 900 |
(1 699) |
— |
1 262 |
| Total expenses |
(8 682) |
(22 838) |
(10 431) |
(1 700) |
10 392 |
— |
(33 259) |
| Cost of handsets, equipment, software and directories |
— |
(3 699) |
(1 534) |
— |
174 |
— |
(5 059) |
| Sales commission, incentives and logistical costs |
— |
(3 575) |
(9) |
— |
— |
— |
(3 584) |
| Payments to other operators |
(559) |
(2 015) |
(353) |
— |
382 |
— |
(2 545) |
| Employee expenses |
(3 213) |
(1 387) |
(3 228) |
(656) |
— |
— |
(8 484) |
| Other expenses |
(318) |
(6 015) |
(3 969) |
(281) |
8 043 |
— |
(2 540) |
| Insurance service expenses |
— |
(179) |
— |
— |
— |
— |
(179) |
| Maintenance |
(1 790) |
(2 583) |
(739) |
(436) |
803 |
— |
(4 745) |
| Marketing |
(64) |
(755) |
(94) |
(12) |
— |
— |
(925) |
| Impairment of receivables, contract assets and loans |
(23) |
(1 006) |
12 |
2 |
1 |
— |
(1 014) |
| Service fees |
(2 510) |
(1 416) |
(491) |
(270) |
872 |
— |
(3 815) |
| Lease-related expenses |
(205) |
(208) |
(26) |
(47) |
117 |
— |
(369) |
| Adjusted EBITDA for reportable segments including intersegmental transactions |
4 230 |
6 728 |
1 076 |
527 |
— |
(81) |
12 480 |
| EBITDA |
|
|
|
|
|
|
12 480 |
| Depreciation, amortisation, impairments and write-offs |
|
|
|
|
|
|
(6 547) |
| Operating profit |
|
|
|
|
|
|
5 933 |
| Investment income |
|
|
|
|
|
|
431 |
| Net finance charges, hedging costs and fair value movements |
|
|
|
|
|
|
(1 608) |
| Profit before taxation |
|
|
|
|
|
|
4 756 |
| Other segment information |
|
|
|
|
|
|
|
| Capital expenditure of property, plant and equipment and intangible assets |
2 719 |
3 191 |
359 |
165 |
— |
— |
6 434 |
| 1 |
Revenue includes transactions generated by subsidiaries of BCX in countries outside of South Africa. These are however not considered material to the Group and are thus not disclosed separately. |
| 2 |
Revenue from contracts with customers recognised over time include interest revenue from customers. |
| 31 March 20253 |
Openserve
Rm |
Telkom
Consumer
Rm |
BCX
Rm |
Gyro3
Rm |
Other3
Rm |
Eliminations3
Rm |
IFRS 16
reversal
Rm |
Consolidated
Rm |
| Revenue from external customers1 |
4 875 |
27 689 |
11 276 |
692 |
40 |
— |
— |
44 572 |
| Revenue from contracts with customers recognised over time2 |
4 322 |
24 109 |
9 042 |
— |
25 |
— |
— |
37 498 |
| Voice |
— |
5 014 |
1 748 |
— |
— |
— |
— |
6 762 |
| Interconnection |
220 |
578 |
— |
— |
— |
— |
— |
798 |
| Data |
4 102 |
17 962 |
2 664 |
— |
— |
— |
— |
24 728 |
| Information technology services |
— |
— |
3 766 |
— |
— |
— |
— |
3 766 |
| Customer premises equipment related services |
— |
84 |
803 |
— |
— |
— |
— |
887 |
| Interest revenue |
— |
299 |
61 |
— |
— |
— |
— |
360 |
| Sundry revenue |
— |
172 |
— |
— |
25 |
— |
— |
197 |
| Revenue from contracts with customers recognised at a point in time |
402 |
3 218 |
2 116 |
— |
7 |
— |
— |
5 743 |
| Customer premises equipment |
— |
3 215 |
352 |
— |
— |
— |
— |
3 567 |
| Information technology hardware and software |
— |
— |
1 764 |
— |
— |
— |
— |
1 764 |
| Sundry revenue |
402 |
3 |
— |
— |
7 |
— |
— |
412 |
| Lease revenue |
151 |
70 |
118 |
692 |
8 |
— |
— |
1 039 |
| Insurance revenue |
— |
292 |
— |
— |
— |
— |
— |
292 |
| Intersegmental operating revenue |
7 474 |
115 |
1 070 |
529 |
292 |
(8 927) |
(553) |
— |
| Other income (adjusted for once-off income) |
263 |
615 |
42 |
— |
2 017 |
(1 385) |
— |
1 552 |
| Total expenses (adjusted for once-off costs) |
(8 607) |
(22 852) |
(11 012) |
(309) |
(1 347) |
10 312 |
— |
(33 815) |
| Cost of handsets, equipment, software and directories |
— |
(3 731) |
(1 641) |
— |
— |
187 |
— |
(5 185) |
| Sales commission, incentives and logistical costs |
— |
(3 214) |
— |
— |
— |
— |
— |
(3 214) |
| Payments to other operators |
(623) |
(2 117) |
(369) |
— |
— |
416 |
— |
(2 693) |
| Employee expenses |
(3 072) |
(1 222) |
(3 404) |
(23) |
(337) |
— |
— |
(8 058) |
| Other expenses |
(303) |
(6 119) |
(4 026) |
(129) |
(224) |
8 039 |
— |
(2 762) |
| Insurance service expenses |
— |
(202) |
— |
— |
— |
— |
— |
(202) |
| Maintenance |
(2 000) |
(2 618) |
(858) |
— |
(436) |
868 |
— |
(5 044) |
| Marketing |
(58) |
(793) |
(89) |
— |
(15) |
— |
— |
(955) |
| Impairment of receivables, contract assets and loans |
22 |
(1 226) |
(137) |
— |
(1) |
— |
— |
(1 342) |
| Service fees |
(2 385) |
(1 334) |
(481) |
(155) |
(314) |
670 |
— |
(3 999) |
| Lease-related expenses |
(188) |
(276) |
(7) |
(2) |
(20) |
132 |
— |
(361) |
| Adjusted EBITDA for reportable segments including intersegmental transactions and excluding once-off costs and income |
4 005 |
5 567 |
1 376 |
912 |
1 002 |
— |
(553) |
12 309 |
| Once-off costs and income |
|
|
|
|
|
|
|
|
| Gain on disposal of Swiftnet |
|
|
|
|
|
|
|
4 408 |
| Restructuring expenses |
|
|
|
|
|
|
|
(160) |
| Loss on settlement of the TRF |
|
|
|
|
|
|
|
(618) |
| EBITDA |
|
|
|
|
|
|
|
15 939 |
| Depreciation, amortisation, impairments and write-offs |
|
|
|
|
|
|
|
(5 962) |
| Operating profit |
|
|
|
|
|
|
|
9 977 |
| Investment income |
|
|
|
|
|
|
|
382 |
| Net finance charges, hedging costs and fair value movements |
|
|
|
|
|
|
|
(1 998) |
| Profit before taxation |
|
|
|
|
|
|
|
8 361 |
| Other segment information |
|
|
|
|
|
|
|
|
| Capital expenditure of property, plant and equipment and intangible assets |
2 535 |
2 797 |
392 |
248 |
114 |
— |
— |
6 086 |
| 1 |
Revenue includes transactions generated by subsidiaries of BCX in countries outside of South Africa. These are however not considered material to the Group and are thus not disclosed separately.
|
| 2 |
Revenue from contracts with customers recognised over time include interest revenue from customers. |
| 3 |
In the 31 March 2025 segment, Swiftnet and Gyro were included within the "Gyro" segment. Due to the change in the organisational structure, the prior year segment information has been restated to include Gyro within the "Other" segment, while Swiftnet continues to be included within the "Gyro" segment. The "Gyro" segment for 31 March 2025 therefore includes Swiftnet only for 10 months until the date of sale. |
Entity-wide disclosures
All material non-current assets, other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts related to the segments above, are located in South Africa. Assets belonging to the subsidiaries of BCX outside of South Africa are not considered material to the Group as a whole.
No single customer contributes more than 10% of the revenue from external customers and thus no specific information relating to major customers is included in the segment information. For the purpose of assessing revenue contribution per customer, management does not treat the South African government as a single customer, but views each department/municipality within the government as a single customer. |
