The Group’s segment reporting follows the organisational structure as reflected in its internal management reporting systems, which are the basis for assessing the financial performance of the business segments and for allocating resources to these segments. Management’s assessment of the Group’s organisational structure takes the geographical location of the segments into account. Operating segments are reported internally to the chief operating decision-maker in a manner consistent with the financial statements. In addition, the chief operating decision-maker uses core net profit and core headline earnings as non-IFRS measures in evaluating the Group’s performance on a segmental level. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Executive Directors, who are responsible for making strategic decisions on behalf of the Group.

Transactions between reportable segments are conducted on similar terms as other transactions of a similar nature.

The segment results for the year ended 31 May are as follows:

The Company is domiciled in the Republic of South Africa. The result of its revenue from external customers in South Africa is R24.9 billion (2018: R26.5 billion), and the total revenue from external customers from other countries is R973 million (2018: R334 million).

The total non-current assets other than financial instruments and deferred tax assets located in South Africa is R9.4 billion (2018: R8.9 billion), and the total non-current assets located in other countries is R297 million (2018: R469 million).

The Africa Distribution segment includes revenue of R3.6 billion earned from one external customer.

At 31 May 2019, the Group is managed on the basis of five main business segments:

• Africa Distribution, which includes the distribution of prepaid airtime, starter packs and electricity of the South African network operators and utility suppliers, and the distribution of handsets, tablets and other devices within South Africa and certain African countries.
• International, which includes distribution of prepaid airtime in Mexico and the venture capital investment of Oxigen Services India (refer to note 2.1).
• Mobile, which includes the provision of a complete mobile transactional ecosystem and services provisioning platform delivering mobile-centric products and services through any mobile channel, including location-based and WASP services, and music and digital content provision.
• Solutions, which includes marketing of cellular and financial products and services through outbound telemarketing and other channels, provides inbound customer care and technical support, and markets data and analytics services.
• Corporate, which performs the head office administration function.

Core net profit and core headline earnings

Core net profit and core headline earnings are non-IFRS measures used by the Group in evaluating the Group’s performance. These supplement the IFRS measures. Core net profit is calculated by adjusting net profit for the year with the amortisation of intangible assets net of deferred taxation and non-controlling interests that arise as a consequence of the purchase price allocations completed in terms of IFRS 3 – Business Combinations. Core headline earnings is calculated by adjusting core net profit with the headline earnings adjustments required by SAICA circular 4/2018.

Reconciliation of core net profit and core headline earnings to relevant IFRS measures are presented in note 1.5.