| |
Basic earnings per share
Earnings per share is calculated using the weighted average number of ordinary shares in
issue during the period and is based on the profit after tax attributable to ordinary
shareholders. For the purpose of calculating earnings per share, treasury shares are
deducted from the number of ordinary shares in issue.
Diluted earnings per share is calculated by adjusting the weighted average number of
ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares
and is based on the net profit attributable to ordinary shareholders, adjusted for the after-tax
dilutive effect. The company has dilutive potential ordinary shares which comprise
share options and share rights issued in terms of the group’s share schemes, performance
share plan and the MTN Zakhele Futhi transaction (note 8.1).
Headline earnings per share
Headline earnings per share is calculated using the weighted average number of ordinary
shares in issue during the period and is based on the earnings attributable to ordinary
shareholders, after excluding those items as required by Circular 2/2015 issued by the
South African Institute of Chartered Accountants (SAICA).
|
| |
| |
2017
'000 |
|
2016
'000 |
|
| Weighted average number of shares (excluding treasury shares) for calculation of basic earnings per share |
1 797 414 |
|
1 819 974 |
|
| Adjusted for: |
|
|
|
|
| – Share options – MTN Zakhele Futhi |
28 536 |
|
42 509 |
|
| – Share appreciation rights |
32 |
|
75 |
|
| – Performance share plan |
3 028 |
|
967 |
|
| – Employee share ownership plan |
5 |
|
– |
|
| Weighted average number of shares for calculation of diluted earnings per share |
1 829 015 |
|
1 863 525 |
|
Refer to note 8.1 for a reconciliation of total shares in issue.
During 2016, the group implemented a new BBBEE transaction, structured through
MTN Zakhele Futhi (RF) Limited (MTN Zakhele Futhi) (note 8.1). The shares held by MTN
Zakhele Futhi, although legally issued, are not deemed to be issued in terms of IFRS as the
MTN Zakhele Futhi transaction has the substance of an option. As at 31 December 2016,
42 508 806 potential ordinary shares held by MTN Zakhele Futhi were not included in the
calculation of diluted loss per share as they are antidilutive. In addition, as at 31 December 2016,
1 042 243 potential ordinary shares in the form of share options and share rights issued in
terms of the group’s share schemes and performance share plan were excluded from the
calculation of diluted loss per share due to being antidilutive.
Reconciliation between net profit/(loss) attributable to the equity holders of the company and
headline earnings/(loss):
| |
2017 |
|
2016 |
|
| |
Gross
Rm |
|
Net1
Rm |
|
|
Gross
Rm |
|
Net1
Rm |
|
| Profit/(loss) after tax |
|
|
4 414 |
|
|
|
|
(2 614) |
|
| Adjusted for: |
|
|
|
|
|
|
|
|
|
| (Profit)/loss on disposal of property, plant and equipment |
(11) |
|
(15) |
|
|
(1) |
|
4 |
|
| – Subsidiaries (IAS 16) |
(8) |
|
(13) |
|
|
4 |
|
8 |
|
| – Joint ventures (IAS 28) |
(3) |
|
(2) |
|
|
(5) |
|
(4) |
|
| Profit on disposal of intangible assets |
– |
|
– |
|
|
(47) |
|
(59) |
|
| – Subsidiaries (IAS 38) |
– |
|
– |
|
|
(47) |
|
(59) |
|
| Impairment of goodwill (IAS 36) |
2 631 |
|
2 631 |
|
|
873 |
|
873 |
|
| Net impairment loss on property, plant and equipment and intangible assets (IAS 36) |
3 045 |
|
2 319 |
|
|
205 |
|
199 |
|
| Net (gain)/loss on dilution of investment in joint venture (IAS 28) |
(28) |
|
(28) |
|
|
349 |
|
349 |
|
| Realisation of deferred gain on disposal of non-current assets held for sale (IFRS 5) |
(27) |
|
(27) |
|
|
(31) |
|
(31) |
|
| Profit on disposal of subsidiary (IFRS 10) |
– |
|
– |
|
|
(130) |
|
(130) |
|
| Profit on derecognition of equity-accounted investment (IAS 28) |
(6 017) |
|
(6 017) |
|
|
– |
|
– |
|
| Headline earnings/(loss) |
|
|
3 277 |
|
|
|
|
(1 409) |
|
| |
|
|
2017 |
|
|
|
|
2016 |
|
| Earnings/(loss) per ordinary share (cents) |
|
|
|
|
|
|
|
|
|
| – Basic |
|
|
246 |
|
|
|
|
(144) |
|
| – Basic headline |
|
|
182 |
|
|
|
|
(77) |
|
| – Diluted |
|
|
241 |
|
|
|
|
(144) |
|
| – Diluted headline |
|
|
179 |
|
|
|
|
(77) |
|
| 1 |
Amounts are measured after taking into account non-controlling interests and tax. |
Headline earnings/(loss) is calculated in accordance with the circular titled ‘Headline
Earnings’ as issued by the South African Institute of Chartered Accountants, as amended
from time to time and as required by the JSE Limited. |
