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9. DISCONTINUED OPERATIONS AND DISPOSAL GROUPS HELD FOR SALE
9.1 Discontinued operations
Telkom Media (Proprietary) Limited
Telkom Media was classified as held for sale in the September 2008 interim
financials. At year end March 31, 2009, the subsidiary did not meet
the held for sale criteria as management were unable to sell the disposal
group for its expected price and therefore decided to abandon it.
The results and cash flows of the subsidiary are disclosed as a
discontinued operation in accordance with IFRS.
Telkom Annual Report 2009 165
Notes to the consolidated annual financial statements (continued)
for the three years ended March 31, 2009
2007 2008 2009
Rm Rm Rm
Analysis of the results of discontinued operations:
Revenue* 14 26
Expenses* 157 305
Loss before taxation of discontinued operations 143 279
Taxation (1) 2
Loss after taxation of discontinued operations 142 281
The net cash flows attributable to the operating, investing and
financing activities of discontinued operations:
Operating cash flows (95) (140)
Investing cash flows (218) (39)
Financing cash flows 319 149
Total cash inflow/(outflow) 6 (30)
9.2 Disposal groups held for sale
9.2.1 Vodacom Group (Proprietary) Limited
In the current year, the Group announced a decision to dispose of its entire
interest in Vodacom through selling 15% of its shareholding to Vodafone, a
wholly owned subsidiary of Vodafone Group Plc (Vodafones) and unbundling
its remaining 35% shareholding to its shareholders pursuant to a listing of
Vodacom on the main board of the JSE Limited. This decision was taken in
line with the Group’s strategy to unlock shareholder value; consequently, all
assets and liabilities of Vodacom and its subsidiaries were classified as a
discontinued operation.
Analysis of the results of discontinued operations:
Revenue* 19,157 22,653 26,215
Expenses* 14,709 17,334 21,749
Profit before taxation of discontinued operations 4,448 5,319 4,466
Taxation 1,918 2,055 2,023
Profit after taxation of discontinued operations 2,530 3,264 2,443
* Revenue comprises operating revenue, other income and investment income. Expenses comprises operating expenses and finance charges.