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128
Telkom Annual Report 2009
Financial review (continued)
Multi-Links operating expenses
Year ended March 31,
2007 2008 2009 2008/2007 2009/2008
(in millions, except percentages) ZAR ZAR ZAR % change % change
Employee expenses – 39 126 – 223.1
Payments to other operators – 624 652 – 4.5
Selling, general and administrative expenses – 142 1,117 – 686.6
Service fees – 14 38 – 171.4
Operating leases – 37 193 – 421.6
Depreciation, amortisation and impairments – 86 296 – 244.2
Other operating expenses – 942 2,422 – 157.1
Employee expenses increased by 223.1% in
the 2009 financial year primarily due to an
increase in the number of employees as well
as salary increases and bonus payments.
The 686.6% increase in selling, general
and administrative expenditure in the
2009 financial year primarily related to
increased cost of sales and associated
handset subsidies of R281 million as a
result of increased sales volumes,
increased advertising and promotional
expenditure and an increase in expatriates
fees as a result of an increase in staff
seconded from Telkom during the year.
The increases in service fees were mainly
as a result of increased security cost and
payments to consultants as a result of an
increase in operations during the year.
Operating leases increased 421.6% as a
result of an increase in the number of
leased base stations, warehouses and
office buildings as a result of the
expanding operations.
Depreciation, amortisation and impairments
increased 244.2% as a result of higher
capital expenditure incurred during the
year.
Other segment
Other operating revenue
Our other operating revenue is derived
principally from directory services, through
our Trudon Group, internet services outside
South Africa, through our Africa Online
subsidiary.
The following table shows the operating
revenue for our other segment broken
down by major revenue streams and the
percentage change by major revenue
stream for the periods indicated.
2007
Other operating revenue
Year ended March 31,
2008 2009 2008/2007 2009/2008
(in millions, except percentages) ZAR ZAR ZAR % change % change
Trudon 865 930 1,020 7.5 9.7
Africa Online 8 110 194 n/a 76.4
Other operating revenue 873 1,040 1,214 19.1 16.7