Financial Definitions
To calculate the number of access lines per employee the total number of Access Lines is divided by the number of employees at the end of the period. Access Lines: The number of main services connected, including ISDN channels and payphones at the end of a period. It is calculated at one line per main service, two lines per ISDN basic service, and 30 lines ISDN primary service. Employees: The total number of employees of the company as defined by Human Resources, excluding contract workers and temporary employees, at the end of the period. Total employees for the Group are not calculated nor disclosed.
Africa Online is the Preferred Premium Internet Service Provider in Africa. As the largest Pan-African ISP in sub-Saharan Africa, Africa Online offers a wide range of services to suit a variety of customer needs. With operations in Côte d'Ivoire, Ghana, Kenya, Namibia, Swaziland, Tanzania, Uganda and Zimbabwe, Africa Online is positioned to provide both individuals and organisations alike with scalable solutions based on each client's specific needs.
Average monthly revenue per customer, or ARPU, is calculated by dividing the average monthly revenue during the period by the average monthly total reported customer base during the period.
Basic earnings per share.
Banker's acceptance
A Balance Sheet is a primary statement that shows at a given point in time, the asset and liability portion of the entity, as well as the total shareholders funds.
Broad-based Black Economic Empowerment
Black Economic Empowerment
Capital expenditure
Compound Annual Growth Rate.j
Cell C (Proprietary) Limited, a company incorporated in the Republic of South Africa
Celtel Tanzania Limited, a company incorporated in the United Republic of Tanzania
Chief Executive Officer
Conversions in Leadership Programme
Corruption, Money laundering and Terrorism
Cointel VAS (Proprietary Limited, a company incorporated in South Africa
Cost of capital is the cost to the company of obtaining finance. The cost of capital is the rate of return demanded by providers of capital if they are to invest in or lend to a particular business or project. The overall cost of capital can be calculated as the weighted average of the cost of debt and equity, with the weighting being determined by the market value of the assumed proportions of debt and equity during the period under consideration. This is known as the Weighted Average Cost of Capital (WACC).
Corporate Social Responsibility
Communications Workers Union
Direct Aids Intervention
Debt-Equity ratio is calculated by dividing (Interest Bearing Debt less Cash and Cash Equivalents less Financial Instruments), by Capital and Reserves. Interest bearing debt: As stated on the face of the Balance Sheet Cash and Cash equivalents: As stated on the face of the Balance Sheet Financial Instruments: As stated on the face of the Balance as "Other Financial Assets" Capital and Reserves: As stated on the face of the Balance Sheet.
Depreciation is the allocation of the cost of non-current assets to the accounting period during which the company benefits from the assets in use. Amortisation is the writing off of an intangible asset over the projected life of that asset. Depreciation and amortisation is a non-cash item in the income statement that is added back in calculating EBITDA and cash flow.
A dividend is the amount of earnings or profit that is distributed to shareholders. Dividends can be paid during the financial year (as an interim dividend) or proposed at the end of the financial year.
Dividend cover is calculated by dividing adjusted earnings per share by net dividends per share.
Dividends per share relates to the amount of dividend that is distributed per share issued.
Democratic Republic of Congo
Department of Trade and Industry
Earnings is the net profit for the period before distributions to equity shareholders. This is effectively profit after interest, tax, minority interests and preference share dividends.
EBIT is earnings before interest, taxation, minority interests and dividends.
EBIT divided by revenue.
EBITDA represents profit for the year before taxation, finance charges, investment income and depreciation, amortisation, impairment and write-offs.
Electronic Communication Bill (formerly Convergence Bill)
Professional Institute of Engineers of South Africa
Employment equity
The effective tax rate is the tax charge in the statement of profit or loss divided by pre-tax profit.
Environmental health services
Executive Lifestyle Programme
Empresa Mocambicana de Telecommunicacoes
EPS is earnings divided by the average number of shares in issue in a period. EPS may also be shown on a diluted basis and after adjustment to earnings to remove abnormal items.
Enterprise risk management
Euro interbank offer rate
Exceptional items are those that result from ordinary activities, but which are disclosed separately due to their size or incidence in order to give a true and fair view. They are normally included in operating income, either disclosed on the face of the income statement, or within a note to the income statement.
Forward exchange contract
Financial Intelligence Centre Act No. 38 of 2001
("FICA")
The stated purpose of FICA is:
To calculate the number of access lines per employee the total number of access lines is divided by the number of employees at the end of the period.
Films and Publications Board
Fixed termination rates
Generally accepted accounting practices
Historically disadvantaged individual or company
Headline earnings per share.
Human Resources
High speed downlink packet access
International Accounting Standards.
Independent Counseling and Advisory Services
Independent Communications Authority of South Africa
Industrial Development Corporation
International Financial Reporting Standards
The income statement is also known as the profit and loss account. It is a primary statement that shows the amount of income and expenses incurred during a specific period. The net income (net profit or net earnings) or let loss will be transferred into retained earnings in the balance sheet.
Instituto Nacional das Comunicações de Moçambique
Interest cover is calculated by dividing EBIT by the net interest charge in the statement of profit or loss. It is a measure of income gearing.
Institute of Directors in South Africa
International Standards Organisation
King Committee Report on Corporate Governance 2002
London interbank offer rate
Moçambique Cellular
Minority interests are the rights of outside shareholders of subsidiary companies of the group to a proportion of the group's profits or assets.
Minority shareholders are those shareholders in a subsidiary company other than the parent company.
Vodacom's churn is calculated by dividing the average monthly number of disconnections during the period by the average monthly total reported customer base during the period.
Vodacom's customer totals are based on the number of customers registered on Vodacom's network, which have not been disconnected, including inactive customers, as of the end of the period indicated.
Vodacom's average monthly minutes of use per customer, or average MOU, is calculated by dividing the average monthly minutes during the period by the average monthly total reported customer base during the period. MOU excludes calls to free services, bundled minutes and data minutes
Vodacom calculates penetration, or teledensity, based on the total number of customers at the end of the period per 100 persons in the population of South Africa. Population is the estimated South African population at the mid year in the periods indicated as published by Statistics South Africa, a South African governmental department.
Vodacom's traffic comprises total traffic registered on Vodacom's network, including bundled minutes, outgoing international roaming calls and calls to free services, but excluding national and incoming international roaming calls.
MIC Tanzania Limited, a company incorporated in the United Republic of Tanzania.
Multi-Links Telecommunications Limited is Nigeria's pioneer private telephone operators. As one of the leading providers of telecommunications solutions in Nigeria, Multi-Links is the first to introduce the CDMA 2000 1X technology.
Mobile Telecommunications Company
MTN Group Limited, a company incorporated in the Republic of South Africa.
Media Workers of South Africa
Net debt is all interest-bearing debt finance (long-term and short-term) less cash and marketable securities.
National Regulatory Authority
Net debt to total equity is a measure of book leverage (gearing): net debt in the statement of financial position divided by total equity (the sum of shareholders’ funds plus minority interests).
Online billing service (or Old Brown Sherry)
Occupational Health and Safety Assessment Series
Operating free cash flow is defined as cash flow from operating activities, after interest and taxation, before dividends paid, less cash flow from investing activities.
Operating EXpenses
Regulation of Interception of Communication and Provision of Communication-related Information Act
Return on assets is calculated by dividing operating profit by assets affecting operating profit.
Regulation of Interception of Communication and Provision of Communication-related Information Act
Return on Equity is calculated by dividing Net Income by the average of the shareholders funds.
ROCE is calculated by dividing Taxed EBIT by average invested capital. Invested capital represents the book value of the company's investment in fixed assets, net working capital less any other non-financing liabilities not included in working capital.
Revenue per Line is calculated by dividing annualised revenue by the number of Access Lines. Revenue: as stated on the face of the Income Statement, annualised. To annualise revenue, divide year to date revenue by the number of completed months and multiply by twelve. Access Lines: The number of main services connected, including ISDN channels and payphones at the end of a period. It is calculated at one line per main service, two lines per ISDN basic service, and 30 lines ISDN primary service.
Revenue per fixed access line is calculated by dividing total fixed-line revenue during the period, excluding data and directories and other revenue, by the average number of fixed access lines during the period.
Revenue per employee is calculated by dividing annualised revenue by the number of employees at the end of the period. Revenue: as stated on the face of the Income Statement, annualised. To annualise revenue, divide year to date revenue by the number of months and multiply by twelve. Employees: The total number of employees of the company as defined by Human Resources, excluding contract workers and temporary employees, at the end of the period. Total employees for the Group are not calculated nor disclosed.
The Sarbanes - Oxley Act of 2002 was passed in the United States of America to protect investors by improving the accuracy and reliability of corporate disclosures made. There was a need for drastic legislation to be passed after the failure of big corporations like Enron, Andersen and WorldCom following gross misrepresentations in their financial statements. Failure of these companies resulted in investors losing confidence in the integrity of financial reporting and this contributed materially to the crash in share prices in the USA and the rest of the world. As a result of Telkom's listing on the New York Stock Exchange, the Sarbanes - Oxley Act is also applicable to Telkom.
Southern African Developing Countries.
Succession Development Programme
Second National Operator
Secondary Tax on Companies
Telecommunicacoes de Moçamique
Total interest-bearing debt is defined as short and long-term interest-bearing debt, including credit facilities, finance leases and other financial liabilities.
United States Agency for International Development
Vodacom Advanced Executive Development Programme
VenFin Limited, a public company incorporated in the Republic of South Africa
World Health Organisation