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Segment Performance |
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| MOBILE OPERATING EXPENSES |
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Year ended |
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March 31, |
Six months ended September 30 |
| In ZAR millions |
2006 |
2005 |
2006 |
% |
| Employee expenses |
1,019 |
472 |
539 |
14.2 |
| Payments to other operators1 |
2,317 |
1,084 |
1,337 |
23.3 |
| SG&A |
7,328 |
3,552 |
4,286 |
20.7 |
| Services rendered |
65 |
28 |
37 |
32.1 |
| Operating leases2 |
435 |
190 |
269 |
41.6 |
| Depreciation, amortisation, impairment and write offs |
1,472 |
669 |
806 |
20.5 |
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12,636 |
5,995 |
7,274 |
21.3 |
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| 1. |
Payments to other operators include payments to Telkom fixed-line of R120 million (September 30, 2005:
R103 million), which are eliminated on consolidation |
| 2. |
Operating leases include payments to Telkom fixed-line of R217 million (September 30, 2005: R183 million),
which are eliminated on consolidation |
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Mobile operating expenses, before inter-segmental eliminations, increased by 21.3% in the six months
ended September 30, 2006, primarily due to increased employee expenses, selling and distribution costs,
services rendered, operating leases and payments to other operators.
Mobile employee expenses increased 14.2%, primarily due to a 1.3% increase in the total number of
employees to 5,499 to support the growth in operations. Employee productivity has improved in all of
Vodacom’s operations, as measured by customer per employee, increasing by 32.9% to 4,683 customers
per employee.
Mobile payments to other operators increased 23.3% to R1,337 million (September 30, 2005: R1,084 million)
in the six months ended September 30, 2006, primarily as a result of increased outgoing traffic terminating
on the other mobile networks relative to traffic terminating on the fixed-line network
Mobile selling, general and administrative expenses increased 20.7% in the six months ended September
30, 2006, primarily due to an increase in selling, distribution and marketing expenses mainly driven by new
technologies and enhancing brand presence in all operations to support the growth in South African and
other African operations.
Mobile depreciation, amortisation, impairment and write-offs increased by 20.5% to R806 million in the six
months ended September 30, 2006 primarily as a result of a partial impairment reversal of Vodacom
Mozambique’s asset impairment in the prior period.
Telkom’s 50% share of Vodacom’s profit from operations increased 17.5% to R2,483 million and the mobile
operating profit margin decreased to 25.5%. Mobile EBITDA increased 18.2% to R3,289 million with
EBITDA margins decreasing to 33.8%. |
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