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The increase in other operating revenue
was mainly attributable to UUNET, Africa
Online’s 40% joint venture. Our other
operating revenue increased in the 2008
financial year primarily due the inclusion in
the current year of revenue generated by
our newly acquired subsidiary, Africa
Online. Africa Online, which was acquired
with effect from February 23, 2007,
increased the revenue contribution to the
group from R8 million during the 2007
financial year to R110 million during the
2008 financial year.
These additional revenue streams were
further supported by the continued growth
in advertising revenue from our subsidiary,
Trudon. Revenue from directory services
increased in the years ended March 31,
2009 and 2008 primarily due to annual
tariff increases and increased marketing
and online efforts, resulting in increased
spending on advertising by existing
customers and additional advertising
revenue from new customers.
Telkom Annual Report 2009 129
Other operating expenses
The following table shows operating
expenses for our other segment broken
down by major expense categories and
the percentage change for the periods
indicated.
2007
Other operating expenses
Year ended March 31,
2008 2009 2008/2007 2009/2008
(in millions, except percentages) ZAR ZAR ZAR % change % change
Employee expense 158 193 220 22.2 14.0
Payments to other operators – 53 89 – 67.9
Selling, general and administrative expenses 310 335 404 8.1 20.6
Service fees 5 12 12 140.0 –
Operating leases 20 23 26 15.0 13.0
Depreciation, amortisation and impairments 19 32 50 68.4 56.3
Other operating expenses 512 648 801 26.6 23.6
Increases in other operating expenses in
the 2009 financial year were primarily
driven by increases in selling, general and
administrative expenses, payments to other
operators, employee expenses and
depreciation, amortisation and impairments.
Increases in other operating expenses in
the 2008 financial year were primarily
driven by increases in payments to other
operators, employee expenses, depreciation,
amortisation and impairments,
operating leases and service fees. The
increase in these operating expenses in the
2008 financial year was primarily due to
the inclusion of operating expenses relating
to our newly acquired subsidiary, Africa
Online, which impacted all expense
categories.
The following table shows the contributions
to other operating expenses by each of the
two subsidiaries contained in our other
segment and the percentage change for
the periods indicated.
2007
Other operating expenses
Year ended March 31,
2008 2009 2008/2007 2009/2008
(in millions, except percentages) ZAR ZAR ZAR % change % change
Trudon 504 530 593 5.2 11.9
Africa Online 8 118 208 1,375.0 76.3
Other operating expenses 512 648 801 210.7 23.6
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