For the year ended 31 march 2016
The Telkom Group is organised into business units based on products and services and has two reportable segments, namely:
i) Telkom which provides fixed-line access, fixed-line usage, data communications services, mobile voice services and handset sales.
ii) BCX which provides business solutions based on information and communication technology and runs ICT systems and manages products, services and solutions.
The Other segment represents Trudon, Swiftnet and other non trading entities.
The group did not report segment information in prior year as the chief operating decision-maker (CODM) managed the Group business on a combined basis. During the current year the Group acquired BCX and the CODM manages Telkom and BCX as two segments.
The Executive Committee assesses the performance of the operating segments based on a measure of operating profit.
The group announced its aspiration to implement a more flexible and agile operating model and launched Openserve on 13 October 2015 which will require a reassessment of segment reporting as progress is made in implementing the new operating and reporting model to manage performance.
| Telkom Rm |
BCX Rm |
Other Rm |
Eliminations Rm |
Consolidated Rm |
|
|---|---|---|---|---|---|
| 2016 | |||||
| Operating Revenue | 32 106 | 4 810 | 1 255 | (846) | 37 325 |
| External customers | 32 064 | 4 116 | 1 145 | - | 37 325 |
| Inter-segment | 42 | 694 | 110 | (846) | - |
| Reconciliation of operating profit to profit before tax | |||||
| EBITDA for reportable segments excluding voluntary packages | 10 217 | 274 | 499 | (36) | 10 954 |
| Voluntary packages | (2 193) | - | - | - | (2 193) |
| Depreciation amortisation impairment write-offs and losses | (5 274) | (61) | (58) | (49) | (5 442) |
| Operating profit | 2 750 | 213 | 441 | (85) | 3 319 |
| Investment income | 812 | 7 | 22 | (638) | 203 |
| Finance charges and fair value movement | (618) | (18) | - | 14 | (622) |
| Profit before taxation | 2 944 | 202 | 463 | (709) | 2 900 |
| 2015 | |||||
| Operating Revenue | 31 611 | - | 1 298 | (149) | 32 760 |
| External customers | 31 576 | - | 1 184 | - | 32 760 |
| Inter-segment | 35 | - | 114 | (149) | - |
| Reconciliation of operating profit to profit before tax | |||||
| EBITDA for reportable segments excluding voluntary packages | 8 972 | - | 524 | (64) | 9 432 |
| Voluntary packages | (591) | - | - | - | (591) |
| Depreciation amortisation impairment write-offs and losses | (5 457) | - | (59) | 11 | (5 505) |
| Operating profit | 2 924 | - | 465 | (53) | 3 336 |
| Investment income | 506 | - | 14 | (227) | 293 |
| Finance charges and fair value movement | (471) | - | (2) | - | (473) |
| Profit before taxation | 2 959 | - | 477 | (280) | 3 156 |