Telkom AR front.qxp

Results of operations
The Telkom Group added Multi-Links as a new segment to its
financial reporting for the 2009 financial year. As a result, the
Telkom Group’s four reporting segments for the 2009 financial
year are fixed-line, Multi-Links, mobile and other. The other
segment includes Telkom’s Trudon, formerly known as TDS
Directory Operations, and Africa Online subsidiaries. The
information in this annual report has been updated to reflect the
above changes to Telkom’s reporting segments.
Telkom concluded the disposal and sale of Vodacom, its mobile
segment that provided mobile services through its 50% joint
venture interest in Vodacom, effective as of April 20, 2009. In
addition, Telkom’s Board of directors determined to dispose of
Swiftnet, a wholly owned subsidiary that provides wireless data
services, and determined to wind up its Telkom Media subsidiary.
The Telkom Group’s consolidated financial statements and
information included herein reflects the restatement to Telkom’s
consolidated financial statements in prior years as a result of these
events to disclose the effect of discontinued operations and the
disposal of the subsidiaries held for sale as follows:
• Income statement data for all the periods have been restated to
reflect our 50% share of Vodacom’s results, our 100% share of
Swiftnet’s results and our 75% share of Telkom Media’s results
as discontinued operations in accordance with IFRS5; and
• Balance sheet data for only the year ended March 31, 2009
reflect our 50% share of Vodacom’s results and our 100% share
of Swiftnet’s results as discontinued operations in accordance
with IFRS5.
The discussion of the business below has been revised from
previous years to reflect the changes to Telkom’s segments and its
discontinued operations.
Year ended March 31, 2009 compared to year ended March
31, 2008 and year ended March 31, 2007
Consolidated results
The following table shows information related to our operating
revenue, other income, operating expenses, operating profit,
operating profit margin, profit for the year, profit margin, EBITDA
and EBITDA margin for the periods indicated.
Financial review
Telkom Annual Report 2009 105
The Board has decided to delist from the New York Stock
Exchange. Maintaining a listing in the United States is
expensive and takes considerable management time. The
methodology employed and discipline gained from
compliance with the Sarbanes-Oxley reporting
requirements will be retained, where appropriate, to
ensure strict corporate governance compliance and
transparent financial reporting.
Telkom is comfortable that the JSE provides sufficient access
to capital from both South African and global investors.
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