Investor Relations
Note 19: Segment information
for the six months ended September 30, 2010
September 30 |
September 30 |
|
|---|---|---|
Rm |
Rm |
|
| The Group's reporting segments are business units that are separately managed. | ||
| The Group consist of two reportable segments namely Telkom South Africa and Multi-Links. | ||
| The Telkom South Africa segment provides fixed-line access, fixed-mobile and data communications services through Telkom South Africa. | ||
| The other category is a reconciling item which is split geographically between international and South Africa. | ||
| Telkom international category provides internet services outside South Africa, through the iWayAfrica subsidiary (formerly Africa Online Limited and MWEB Africa Limited) and management services through the Telkom Management Services Company. | ||
| The South African category includes Trudon Group, Swiftnet, Data Centre Operations and the Group's corporate centre. | ||
| The Data Centre Operations was shown as part of the Telkom South Africa segment in the March 2010 results as the financial information was still in the process of being split out. As information is now available the results of the Data Centre Operations were moved to the other category, as it does not meet the quantitative thresholds for disclosure as a separate segment. In addition a transfer pricing policy was implemented with effect from 1 April 2010 for internal transactions between the Data Centre Operations and other business units. Included in the Data Centre Operations under the other category is internal revenue of R577 million for the six months ended 30 September 2010 that is eliminated on consolidation. | ||
| Consolidated operating revenue | 18,761 | 17,667 |
| Telkom South Africa | 17,007 | 15,968 |
| Multi-Links | 818 | 744 |
| Other | ||
| International | 234 | 222 |
| South African | 733 | 1,356 |
| Elimination | (31) | (623) |
| Consolidated operating profit | 2,648 | 2,635 |
| Telkom South Africa | 4,385 | 3,609 |
| Multi-Links | (371) | (262) |
| Other | ||
| International | (41) | (65) |
| South African | (1,173) | (622) |
| Elimination | (152) | (25) |
| Reconciliation | ||
| Adjusted EBIT for reportable segments | 2,648 | 2,635 |
| Gain on sale of investment | 18,603 | - |
| Compensation expense | (946) | - |
| Impairment of goodwill and assets | (2148) | (201) |
| Operating profit | 18,157 | 2,434 |
| Investment income | 280 | 133 |
| Gain on distribution of assets | 25,688 | - |
| Finance charges and fair value movement | (794) | (659) |
| Profit before taxation and discontinued operations | 43,331 | 1,908 |