1.

Results of operations

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.