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BLUE LABEL
INTEGRATED ANNUAL REPORT 2017
Notes
to the Group annual financial statements
continued
For the year ended 31 May 2017
1.
Results of operations
continued
1.2 Revenue continued
2017
R’000
2016
R’000
Prepaid airtime, data and related revenue
24 293 834
24 147 786
Postpaid airtime, data and related revenue
90 602
141 397
Prepaid and postpaid SIM cards
628 976
607 833
Services
594 731
542 748
Electricity commission
270 604
246 371
Handsets, tablets and other devices
333 096
322 967
Other revenue*
100 032
195 620
26 311 875
26 204 722
* Other revenue primarily comprises meter installations, device rentals and ticket sales.
1.3 Operating profit
2017
R’000
2016
R’000
The following has been charged/(credited) in arriving at operating profit:
Acquisition-related costs
23 003
21 639
Advertising and promotional expenses
46 892
12 215
Amortisation of intangible assets**
143 109
130 353
Audit fees – services as auditors
15 389
16 816
Audit fees – other
2 359
2 468
Consulting fees
24 447
28 261
Contingent purchase price release* (refer to note 3.2.1)
(10 210)
(48 120)
Depreciation
44 684
42 738
Foreign exchange loss/(profit) (refer to note 3.2.2)
52 151
(73 499)
Impairment of loans
4 001
—
Impairment of trade receivables
15 515
6 418
Impairment of trade receivables – provision
5 170
2 923
Impairment of intangible assets
—
2 568
Impairment of inventory
1 178
5 368
IT infrastructure costs and computer-related costs
32 932
23 321
Legal fees
5 971
3 282
Loss on disposal of subsidiary
—
3 885
Management fees paid
6 339
6 241
Motor vehicle expenses
10 935
9 559
Operating lease rentals – premises
(a)
34 535
32 894
Overseas travel
5 495
6 512
Loss/(profit) on disposal of property, plant and equipment
30
(500)*
* Included in other income on the Group income statement.
** Included in the amortisation charge is an amount of R74.9 million (2016: R77.5 million) in respect of the purchased starter pack bases
and postpaid bases, which is charged to the changes in inventories of finished goods line in the income statement.
(a)
Leases in which a significant portion of the risks and benefits of ownership are effectively retained by the lessor are classified as
operating leases. Payments under operating leases, net of incentives, are charged to the income statement on a straight-line
basis over the period of the lease.