COMMENTARY

Group results

Group revenue declined by R4.3 billion (23%) to R14.6 billion. However, as only the gross profit earned on "PINless top‑ups", prepaid electricity, ticketing and universal vouchers is recognised as revenue, on imputing the gross revenue generated from these sources, the effective growth in revenue equated to R12.5 billion (16%), resulting in a total revenue of R89.3 billion compared to the prior year of R76.8 billion.

Gross profit decreased by R188 million (5%) from R3.483 billion to R3.295 billion. The decline was mitigated by an increase in the gross profit margin from 18.41% to 22.57%. This increase in margins can be partially attributed to the growth in "PINless top-ups", prepaid electricity, ticketing and universal vouchers, where only the gross profit earned thereon is recognised as revenue.

The Group remains vigilant in managing its total overhead costs.

EBITDA declined by R258 million (18%) from R1.463 billion to R1.205 billion, excluding the positive contributions of R20 million in the current year and negative contributions of R146 million in the prior year. Of this decline, CEC showed a negative impact of R368 million, while the remaining Group operations contributed an additional R110 million compared to the previous year.