1. RESULTS OF OPERATIONS
1.5 Earnings per share
 

Core headline

Core headline earnings per share are calculated by adding back to headline earnings, the amortisation of intangible assets net of deferred taxation and non-controlling interests as a consequence of the purchase price allocations completed in terms of IFRS 3(R) – Business Combinations.

(a) Headline earnings, earnings and core headline earnings per share
 
  Attributable earnings   Cents per share  
  2019 
R’000 		   Restated*
2018  
R’000  		   2019 
R’000 		   Restated*
2018  		  
Headline earnings per share                
Basic (2 853 640)   1 116 131     (312.49)   130.44    
Diluted1.     1 052 737           122.34    
Core (2 783 155)   1 160 477     (304.77)   135.62    
Earnings attributable to ordinary equity holders                
Basic (6 646 383)   1 122 085     (727.81)   131.13    
Diluted1.     1 058 691         123.03    
1. There are no dilutive instruments in the current year.
(b) Weighted average number of shares
 
  2019
R’000		   2018
’000		  
Weighted average number of ordinary shares 913 208   855 687  
Adjusted for forfeitable shares —   4 801  
Weighted average number of ordinary shares for diluted earnings1. 913 208   860 488  
1. There are no dilutive instruments in the current year.

The same weighted average number of shares for basic earnings per share is used for core headline earnings per share.
(c) Analysis of headline earnings
 
  (Loss)/profit 
before tax 
and non- 
controlling 
interest 
R’000 		     Tax 
R’000 		     Non- 
controlling 
interest 
R’000 		     Headline 
earnings 
R’000 		  
2019                      
Loss attributable to equity holders of the parent  (6 307 074)       (315 122)       (24 187)       (6 646 383)   
Profit on disposal of property, plant and equipment  (1 155)       323        74        (758)   
Impairment of property, plant and equipment  2 002        (561)       —        1 441    
Impairment of intangible assets  5 111        (1 431)       —        3 680    
Foreign currency translation reserve recycled to profit or loss  (144)       —        —        (144)   
Impairments on investments  2 669 376        —        (7 378)       2 661 998    
Fair value uplift on conversion from an associate to a subsidiary  (27 741)       —        —        (27 741)   
Profit on disposal of property, plant and equipment in associate  (5 524)       —        —        (5 524)   
Impairment of goodwill  124 400        —        —        124 400    
Impairment of investment within associate equity accounted earnings  47 174        —        —        47 174    
Impairment of property, plant and equipment in associate  801 049        —        —        801 049    
Impairment of intangible assets in associate  187 168        —        —        187 168    
Headline earnings                             (2 853 640)   
  Profit 
before tax 
and non- 
controlling 
interest 
R’000		   Tax 
R’000 		   Non- 
controlling 
interest 
R’000 		   Headline 
earnings 
R’000 		  
2018 – restated*                
Profit attributable to equity holders of the parent  1 506 839     (331 069)    (53 685)    1 122 085    
Profit on disposal of property, plant and equipment    (1 784)      499       13       (1 272)   
Impairment of property, plant and equipment    3 800       (1 064)      —       2 736    
Impairment of intangible assets  338     (95)    —     243    
Foreign currency translation reserve recycled to profit or loss    (3 098)      —       —       (3 098)   
Profit on disposal of subsidiary  (2 824)    —     —     (2 824)   
Profit on disposal of property, plant and equipment in associate    (16 771)      4 696       —       (12 075)   
Impairment of intangible assets in associate  14 355     (4 019)    —     10 336    
Headline earnings                    1 116 131    
* As a result of the prior year error the Group has restated their comparative financial information. Refer to note 11 for details.
(d) Reconciliation of earnings from basic to diluted
 
  Earnings  
Restated*
2018  
R’000  		   Headline  
earnings  
Restated*
2018  
R’000  		  
Basic earnings 1 122 085     1 116 131    
Dilutive instrument1 (4 842)    (4 842)   
Dilutive instrument in associate2 (58 552)    (58 552)   
Dilutive earnings 1 058 691     1 052 737    
1 The dilutive instrument represents the effect of the dilution in Panacea Mobile Proprietary Limited and Simigenix Proprietary Limited. Refer to the statement of changes in equity.
2 The dilutive instrument in associate refers to the potential dilution of the Group’s shareholding in Cell C Limited due to its equity-settled share scheme. In the current year this instrument was anti-dilutive.
(e) Analysis of core headline earnings
 
  2019 
R’000 		   Restated*
2018  
R’000  		  
Reconciliation between net profit for the period and core headline earnings for the period:        
Net profit for the period (6 646 383)   1 122 085    
Amortisation on intangibles raised through business combinations net of tax and non-controlling interest 70 485    44 345    
Core net profit for the period (6 575 898)   1 166 430    
Headline earnings adjustments 3 792 743    (5 953)   
Core headline earnings (2 783 155)   1 160 477    
* As a result of the prior year error the Group has restated their comparative financial information. Refer to note 11 for details.