for the year ended 31 March 2016
2016 |
Restated 2015 |
|
|---|---|---|
| Rm | Rm | |
| Expenses | ||
| 5.1 Payments to other operators Payments to other operators decreased mainly due to the lower mobile termination rates. |
2 793 | 2 930 |
| 5.2 Cost of sales The increase in cost of sales is largely attributable to the inclusion of BCX amounting to R3.5 billion and the increase in the sale of mobile devices. |
6 969 | 3 249 |
| 5.3 Employee expenses The increase in employee expenses is mainly due to the voluntary serverance packages (VSP) and voluntary early retirement (VERP) packages offered to employees an average salary increase of 6% and the inclusion of BCX.This is offset by lower headcount from prior year VSP and VERP process. |
10 901 | 9 462 |
| 5.4 Selling general and administrative expenses The increase in selling general and administrative expenses is mainly due to an increase in bad debts and outsourcing costs. |
4 978 | 4 755 |
| 5.5 Service fees The effective management of property led to the decrease in service fees.This is partially offset by increase in the company transformation cost and the inclusion of BCX. |
3 106 | 3 219 |
| 5.6 Depreciation amortisation impairment and write-offs |
5 442 | 5 505 |
| Depreciation of property plant and equipment | 4 370 | 4 506 |
| Amortisation of intangible assets | 902 | 779 |
| Write-offs impairment and losses of property plant and equipment and intangible assets | 170 | 220 |
The decreased is due to lower asset write offs and lower accelerated depreciation.