Notes to the Group Annual Financial Statements | Note 1.5

1. RESULTS OF OPERATIONS
1.5 EARNINGS PER SHARE

CORE HEADLINE

Core headline earnings per share are calculated by adding back to headline earnings, the amortisation of intangible assets net of deferred taxation and non-controlling interests as a consequence of the PPA completed in terms of IFRS 3 – Business Combinations.

USE OF ADJUSTED MEASURES

The measures listed below are presented as management believes it to be relevant to the understanding of the Group's financial performance. These measures are used for internal performance analysis and provide additional useful information on underlying trends to equity holders. These measures are not defined terms under IFRS Accounting Standards and may therefore not be comparable with similarly titled measures reported by other entities. It is not intended to be a substitute for, or superior to, measures as required by IFRS Accounting Standards.

(A) HEADLINE EARNINGS, EARNINGS AND CORE HEADLINE EARNINGS PER SHARE

  Attributable earnings   Cents per share
  2026 
R'000 		   2025 
R'000 		   2026     2025 
HEADLINE EARNINGS PER SHARE               
Basic  756 088    4 096 406    83.58     455.96 
Diluted  756 088    4 096 406    83.39     453.86 
Core  797 862    4 147 296    88.20     461.63 
EARNINGS ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS               
Basic  (4 882 394)   2 484 243    (539.73)    276.52 
Diluted  (4 882 394)   2 484 243    (539.73)*   275.24 

(B) WEIGHTED AVERAGE NUMBER OF SHARES

Weighted average number of shares 2026
R'000		 2025
R'000
Weighted average number of ordinary shares 904 599 898 408
Adjusted for weighted average conditional shares 2 125 4 154
Weighted average number of ordinary shares for diluted headline earnings 906 724 902 562
* The conditional shares are not included in the weighted average number of ordinary shares for diluted earnings per share because they are anti-dilutive.

(C) ANALYSIS OF HEADLINE EARNINGS

  (Loss)/profit 
before tax 
and non- 
controlling 
interest 
R'000 		 Tax 
R'000 		 Non- 
controlling 
interest 
R'000 		 Headline 
earnings 
R'000 
2026         
Loss attributable to equity holders of the parent  (4 733 086) 47 426  (196 734) (4 882 394)
Net loss on disposal of property, plant and equipment  3 163  (854) 22  2 331 
Net loss on disposal of intangible assets  37 092  (10 015) –  27 077 
Impairment of property, plant and equipment  14 248  (3 078) –  11 170 
Impairment of intangible assets  144 381  (38 983) –  105 398 
Impairment of goodwill  200 592  –  –  200 592 
Impairment of investment in associate  9 273  –  –  9 273 
Net gain on sale of associates and joint venture  (842 171) –  –  (842 171)
Net loss on disposal of subsidiaries  6 132 514  –  –  6 132 514 
Net gain on disposal of property, plant and equipment in associate/joint venture  (7 702) –  –  (7 702)
HEADLINE EARNINGS        756 088 
2025         
Profit attributable to equity holders of the parent  2 624 525  (143 805) 3 523  2 484 243 
Net loss on disposal of property, plant and equipment  1 998  (424) (747) 827 
Impairment of property, plant and equipment  22 150  (5 981) –  16 169 
Net loss on disposal of property, plant and equipment in associate/joint venture2  17 755  –  –  17 755 
Net loss on sale of joint venture  7 902  683  (1 631) 6 954 
Reversal of impairment of investment in associate  (1 555 042) –  –  (1 555 042)
Impairment of property, plant and equipment in associate2  804 387  –  –  804 387 
Impairment of intangible assets in associate2  1 638 571  –  –  1 638 571 
Impairment of leased assets in associate2  682 542  –  –  682 542 
HEADLINE EARNINGS        4 096 406 
2 With reference to note 2.2.1, during the prior year all of the previously unrecognised Group's share of cumulative losses in Cell C of R1.6 billion were recognised, which included these capital items.

(D) ANALYSIS OF CORE HEADLINE EARNINGS

2026 
R'000 		 2025
R'000
Reconciliation between net profit and core headline earnings for the year:
Net (loss)/profit for the year attributable to equity holders of the parent (4 882 394) 2 484 243
Amortisation of intangibles raised through business combinations net of tax and non-controlling interest 41 774  50 890
Core net (loss)/profit for the year (4 840 620) 2 535 133
Headline earnings adjustments 5 638 482  1 612 163
Core headline earnings 797 862  4 147 296