Blue Label Telecoms Integrated Annual Report 2016

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NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS continued
For the year ended 31 May 2016
89
BLUE LABEL INTEGRATED ANNUAL REPORT 2016
1. Results of operations continued
1.1 Segmental summary continued
At 31 May 2016, the Group is managed on the basis of five main business segments:
• South African Distribution, which includes the distribution of physical and virtual prepaid airtime and electricity of
the South African mobile/fixed-line network operators and utility suppliers, and the distribution of starter packs in
South Africa.
• International Distribution, which includes international distribution of physical and virtual prepaid airtime in India
and Mexico, and payment solutions in India. This segment also incorporates the Africa Prepaid Services group.
• Mobile, which includes the provision of a complete mobile transactional ecosystem and services provisioning
platform delivering mobile-centric products and services through any mobile channel, including location-based and
WASP services, and music and digital content provision.
• Solutions, which includes marketing of cellular and financial products and services through outbound telemarketing
and other channels, provides inbound customer care and technical support, and markets data and analytics services.
• Corporate, which performs the head office administration function.
International Distribution Mobile Solutions Corporate
2016
R’000
2015
R’000
2016
R’000
2015
R’000
2016
R’000
2015
R’000
2016
R’000
2015
R’000
— — 307 661 251 085 196 703 164 595 — —
— — (15 805) (10 917) (6 377) (18 432) — —
— — 291 856 240 168 190 326 146 163 — —
44 152 35 379 111 142 51 359 35 889 40 831 (84 057) (85 656)
— — (13 288) (7 068) (1 521) (2 877) (6 244) (6 518)
— — — — — — — —
— — (1 526) — — — — —
— (4 688) — — — — — —
(1) (152) (2 584) (733) — (2) (7 812) (6 284)
10 224 7 190 3 277 1 322 933 449 10 267 7 383
(70 283) (81 267) 2 690 2 658 760 (729) — —
(16 062) (14 701) (23 826) (15 732) (14 680) (9 480) (5 902) (2 679)
(31 970) (58 239) 75 885 31 806 21 381 28 192 (93 748) (93 754)
(31 970) (58 239) 75 885 31 806 21 381 28 192 (93 748) (93 754)
2 641 3 593 3 199 2 646 — — — —
(29 329) (54 646) 79 084 34 452 21 381 28 192 (93 748) (93 754)
(29 975) (25 379) 1 060 (213) 5 448 — 3 (3 962)
(59 304) (80 025) 80 144 34 239 26 829 28 192 (93 745) (97 716)
(59 327) (72 337) 65 333 28 346 21 564 23 975 (93 745) (97 716)
23 (7 688) 14 811 5 893 5 265 4 217 — —
— — — — (3 885) — — 3 691
— 18 771 — — — — — —
— — — — — — — —
— — — — — — — —
16 608 18 894 489 351 425 046 135 841 151 077 28 502 16 774
792 488 500 203 54 210 41 905 1 220 464 — —
809 096 519 097 543 561 466 951 137 061 151 541 28 502 16 774
— — 2 469 8 257 928 1 657 853 310
— — 31 198 27 722 407 1 445 8 19
210 416 51 424 — — — — — —
— — — 30 051 — — — —
(35 974) (26 792) (120 457) (147 536) (17 101) (18 011) (130 205) (134 912)
* Core net profit and core headline earnings
Historically, a measurement of the Group’s performance and the growth thereon was based on core earnings per share. This has
been substituted to core headline earnings per share which is a more informative measurement of the day-to-day operations of
the Group. Core net profit and core headline earnings are non-IFRS measures used by the Group in evaluating the Group’s
performance. These supplement the IFRS measures. Core net profit is calculated by adjusting net profit for the year with the
amortisation of intangible assets net of deferred taxation and non-controlling interests that arise as a consequence of the
purchase price allocations completed in terms of IFRS 3 – Business Combinations. Core headline earnings is calculated by adjusting
core net profit with the headline earnings adjustments required by SAICA circular 2/2015.
Reconciliation of core net profit and core headline earnings to relevant IFRS measures are presented in note 1.5.