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NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
continued
For the year ended 31 May 2016
91
BLUE LABEL INTEGRATED ANNUAL REPORT 2016
1.
Results of operations
continued
1.2 Revenue continued
2016
R’000
2015
R’000
Prepaid airtime, data and related revenue
24 147 786
20 245 563
Postpaid airtime, data and related revenue
141 397
127 030
Prepaid and postpaid SIM cards
607 833
701 223
Services
542 748
442 600
Electricity commission
246 371
201 170
Handsets, tablets and other devices
322 967
178 886
Other revenue*
195 620
147 750
26 204 722
22 044 222
* Other revenue primarily comprises meter installations, device rentals and ticket sales.
1.3 Operating profit
2016
R’000
2015
R’000
The following has been charged/(credited) in arriving at operating profit:
Acquisition-related costs
21 639
1 971
Advertising and promotional expenses
12 215
14 252
Amortisation of intangible assets**
130 353
121 819
Audit fees – services as auditors
16 816
14 188
Audit fees – other
2 468
491
Consulting fees
28 261
29 645
Contingent purchase price release* (refer to note 3.2.1)
(48 120)
(923)
Depreciation
42 738
40 813
Foreign exchange profit*
(73 499)
(20 443)
Impairment of loans
—
4 907
Impairment of trade receivables
6 418
14 463
Impairment of trade receivables – provision
2 923
(4 738)
Impairment of intangible assets
2 568
—
Impairment of inventory
5 368
—
IT infrastructure costs and computer-related costs
23 321
21 117
Legal fees
3 282
14 701
Loss/(profit) on disposal of subsidiaries
3 885
(3 962)
Profit on disposal of associates
—
(37 238)
Management fees paid
6 241
5 624
Motor vehicle expenses
9 559
9 484
Operating lease rentals – premises
(a)
32 894
33 692
Overseas travel
6 512
5 536
Profit on disposal of property, plant and equipment*
(500)
(1 707)
* Included in other income on the Group income statement.
** Included in the amortisation charge is an amount of R77.5 million (2014: R73.5 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.