COMMENTARY

Group revenue amounted to R14.1 billion. 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 R6.7 billion (7%), resulting in a total revenue of R96 billion compared to the prior year of R89.3 billion.

Gross profit increased by R80 million (2%) from R3.295 billion to R3.375 billion, corresponding to an increase in margins from 22.57% to 24.02%. 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.

Excluding net positive extraneous contributions of R176 million in the current year, EBITDA increased by R202 million (17%), from R1.225 billion to R1.428 billion. This increase reflected a R288 million decline in Comm Equipment Company (CEC), offset by a R490 million increase across the remaining Group entities compared to the prior year.

The decline in EBITDA in CEC was primarily driven by a reduction in the subscriber base and a lower average revenue per user (ARPU).