For the year ended 31 march 2015
2015Rm |
Restated |
|
|---|---|---|
| Operating Expenses | ||
| 5.1 Payments to other operators | 2 930 | 3 944 |
| Payments to other network operators (interconnection fees) has decreased due to the reduction in the mobile termination rates. | ||
| 5.2 Cost of sales | 2 787 | 2 177 |
| The increase in the cost of sales is largely attributable to the increase in the mobile device sales. | ||
| 5.3 Employee expenses | 9 354 | 6 922 |
| The increase in employee expenses is mainly due to a net curtailment gain of R2.2 billion that related to the curtailment and settlement of the post retirement medical aid benefit which occurred in the prior financial year. The average salary increase as well as the retrenchment packages, voluntary early retirement packages and volutary severance packages gave rise to the increase in employee expenses offset by a settlement gain that related to the post retirement medical aid benefit. | ||
| 5.4 Selling, general and administrative expenses | 4 712 | 4 699 |
| Selling, general and administrative increased marginally. More focused marketing activities resulted in a decrease in selling, general and administrative expenses in the current financial year. The decrease was partially offset by an increase in bad debt provision. The adverse economic conditions gave rise to higher impairments. | ||
| 5.5 Service fees | 3 212 | 3 103 |
| The increase in service fees is driven by costs relating to higher utilities and maintenance costs on Telkom properties. | ||
| 5.6 Depreciation, amortisation, impairment and write-offs | 5 478 | 5 891 |
| Depreciation of property, plant and equipment | 4 500 | 4 605 |
| Amortisation of intangible assets | 758 | 654 |
| Impairment of property, plant and equipment and intangible assets | - | 392 |
| Write-offs of property, plant and equipment and intangible assets | 220 | 240 |
| The decrease in depreciation is due to accelerated depreciation on new connections installed to customer premises in the prior financial year that was not incurred to the same extent in the current financial year together with the impairment of certain legacy and technologically aged items that did not occur in the current financial year. |