Certain financial information presented in this results announcement constitutes pro forma financial information in terms of the JSE Listings Requirements. The pro forma financial information is presented to assist the reader to analyse the underlying performance of Telkom. The pro forma adjustments for the prior financial year include the impact of VSP, VERP and S189 costs of R270 million and the related tax impact of R76 million in FY2021. Unless otherwise stated, the pro forma consolidated income statement and all related key performance indicators and messages in this results announcement are based on this adjusted base. The applicable criteria on which this pro forma financial information is reported and prepared for the year ended 31 March 2021 are set out below.
| Reported March 2021 Rm |
Pro forma adjustment Rm |
Pro forma March 2021 Rm |
|
|---|---|---|---|
| Operating expenses | 21 069 | (270) | 20 799 |
| Employee expenses | 9 312 | (270) | 9 042 |
| EBITDA | 11 703 | 270 | 11 973 |
| Operating profit | 4 833 | 270 | 5 103 |
| Taxation | 1 067 | 76 | 1 143 |
| Profit for the year | 2 428 | 194 | 2 622 |
| BEPS (cents) | 489.9 | 529.1 | |
| HEPS (cents) | 522.2 | 561.5 |
Segment reporting is provided on https://www.telkom.co.za/ir/financial/financial-results-2022.shtml as part of the notes to the financial statements.
Group profit after tax increased by 0.3%* to R2 631 million (FY2021: R2 622 million*). This is attributable to lower fair value movements and finance charges as a result of lower interest rates and the settlement of the SARS liability in the comparative year. Headline earnings per share (HEPS) increased by 2.5%* to 575.3 cents and basic earnings per share (BEPS) increased by 1.4%* to 536.6 cents.
The pro forma financial information for the comparative year ended 31 March 2021 has been presented consistently with the pro forma financial information published for the year ended 31 March 2021.