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. |