SEGMENTAL REVIEW

for the year ended 31 March 2020

  Revenue   Revenue   Trading profit  
  2020
ZAR’m
  2019
ZAR’m
         
Revenue and trading profit External   Inter- 
segment 
  Total    External   Inter- 
segment 
  Total    2020 
ZAR’m 
  2019 
ZAR’m 
 
South Africa 34 154   6 700    40 854    33 696   6 605    40 301    10 259    10 199   
Rest of Africa 15 476   337    15 813    14 836   250    15 086    (2 921)   (3 735)  
Technology 1 757   1 762    3 519    1 563   1 721    3 284    690    550   
Eliminations   (8 799)   (8 799)     (8 576)   (8 576)   –    –   
Total 51 387   –    51 387    50 095   –    50 095    8 028    7 014   

 

  2020
ZAR’m
  2019
ZAR’m
 
Revenue by nature South
Africa
  Rest of
Africa
  Tech-
nology
  Total   South
Africa
  Rest of
Africa
  Tech-
nology
  Total  
Subscription fees 28 434   14 318     42 752   27 740   13 508     41 248  
Advertising 2 797   416     3 213   2 873   307     3 180  
Set-top boxes 857   572     1 429   1 242   800     2 042  
Installation fees 332       332   123       123  
Technology contracts and licensing     1 757   1 757       1 563   1 563  
Other revenue 1 734   170     1 904   1 718   221     1 939  
Total external 34 154   15 476   1 757   51 387   33 696   14 836   1 563   50 095  
Reconciliation of consolidated trading profit to consolidated operating profit

Operating segments are identified on the basis of internal reports about components of the group that are regularly reviewed by the chief operating decision-maker (CODM) in order to allocate resources to the segments and to assess their performance. The CODM has been identified as the executive directors of the group.

In prior years, adjusted EBITDA was shown as a subtotal to trading profit but as trading profit is the measure used by the CODM only trading profit has been disclosed in the current year.

Trading profit as presented in the segment disclosure is the CODM and management’s measure of each segment’s operational performance. A reconciliation of the segmental trading profit to operating profit as reported in the income statement is provided below:

  2020 
ZAR’m 
  2019 
ZAR’m 
 
Consolidated trading profit1 8 028    7 014   
Interest on transponder leases 656    650   
Amortisation of intangibles (other than software) (71)   (79)  
Other operating (losses)/gains – net2 (2)   (33)  
Share-based compensation (344)   (189)  
Operating profit per the income statement3 8 267    7 363   
1 The impact of IFRS 16 Leases has reclassified operating leases, previously fully included in trading profit, into depreciation and finance costs. As finance costs (apart from interest on leased transponders) are excluded from trading profit, an increase in trading profit of ZAR58m resulted.
2 Includes impairments and dividends received. Excludes ZAR82m of other operating gains which are included in both trading profit and operating profit. As part of the transitional services and separation agreements with the group’s previous legal owner, certain once-off operating costs were reimbursed during the year amounting to R82m.
3 The summary consolidated income statement discloses all reporting items from consolidated operating profit to consolidated profit before taxation.