Notes to the consolidated annual financial statements | Note 1

1. Segment analysis
  The Group’s reportable segments are business units that offer comparable business products and services, which are separately managed since the mobile telecommunication and data communication businesses are located in South Africa and other countries. The segments offer a variety of telecommunication and data communication services and products.

Corporate comprises the holding companies of the Group which do not relate to specific operating segments.

South Africa comprises the segment information relating to the South African-based cellular network, service provider and other business segments.

International comprises the segment information relating to the non-South African-based cellular networks in Tanzania, Mozambique, Lesotho and the Democratic Republic of Congo as well as the operations of Vodacom International Limited and Vodacom Business Africa.

Rm 2018    2017   
Reconciliation of segment results        
EBITDA  32 898     31 238    
   Depreciation and amortisation excluding acquired brands and custome rbases  (9 798)    (9 054)   
   Net profit/(loss) on disposal of property, plant and equipment and intangible assets     (58)   
EBIT  23 109     22 126    
Acquired brand and customer base amortisation  (161)    (197)   
Impairment losses  (4)    (84)   
Broad-based black economic empowerment charge  (130)    (75)   
Net profit from associate and joint venture  1 507       
Other  (69)    (21)   
Operating profit 1  24 252     21 750    

Rm   Corporate  South Africa  International  Eliminations  Total    Safaricom  2  
2018                  
Segment revenue (including inter-segment)    40  69 967  17 460  (1 097) 86 370     19 768     
   Total segment revenue     –  71 933  17 918  –  89 851          
   Intra-segment revenue     40  (1 966) (458) (1 097) (3 481)         
Inter-segment revenue     (40) (426) (631) 1 097  –          
External customer segment revenue     –  69 541  16 829  –  86 370     19 768     
EBIT     (122) 21 124  2 096  11  23 109     6 799     
EBITDA     (120) 28 088  4 930  –  32 898     9 620     
Net finance income/(charges)    14 988  (2 531) 1 539  (16 889) (2 893)         
Taxation     (171) (5 120) (980) (260) (6 531)         
Other material non-cash items included in segment profit or loss:                            
   Depreciation and amortisation     (5) (7 091) (2 863) –  (9 959)         
Total assets                            
Reportable segment assets which includes:     69 268  60 426  24 756  (23 085) 131 365     51 000     
   Additions to property, plant and equipment and intangible assets     8 893  2 714  –  11 610          
   Non-current assets other than financial instruments and deferred taxation     44  37 984  11 916  1 411  51 355          
Total liabilities                            
Reportable segment liabilities     (11 216) (51 068) (15 169) 16 740  (60 713)    (13 179)   
Notes:
1 For a reconciliation of operating profit and net profit for the year, refer to the consolidated income statement.
2 On 7 August 2017, the Group acquired an effective interest of 34.94% in Safaricom Public Limited Company (Safaricom), which is accounted for as an investment in associate. Due to the significance of this investment, and the information available for review by the chief operating decision maker (CODM), Safaricom is presented as a separate segment. The above results represent 100% of the results of Safaricom from the date of acquisition, including the impact of net fair value adjustments on tangible and intangible assets and goodwill (Note 12). Only information reviewed by the CODM to make decisions about resources to be allocated to the segment and to assess its performance is presented above.

Rm Corporate  South Africa  International  Eliminations  Total   
2017            
Segment revenue (including inter-segment)  157   64 729   17 350   (958)  81 278    
   Total segment revenue  –  66 366  17 874  –  84 240    
   Intra-segment revenue  157  (1 637) (524) (958) (2 962)   
Inter-segment revenue  (157) (314) (487) 958  –    
External customer segment revenue  –  64 415  16 863  –  81 278    
EBIT  (125) 20 593  1 648  10  22 126    
EBITDA  (122) 26 815  4 545  –  31 238    
Net finance income/(charges) 12 322  (1 758) (966) (12 120) (2 522)   
Taxation  (37) (5 190) (771) (104) (6 102)   
Other material non-cash items included in segment profit or loss:                   
   Depreciation and amortisation  (4) (6 377) (2 870) –  (9 251)   
Total assets                   
Reportable segment assets which includes:  21 177  51 930  23 104  (15 073) 81 138    
   Additions to property, plant and equipment and intangible assets   64   8 470   2 781   –   11 315    
   Non-current assets other than financial instruments and deferred taxation   31   36 134   13 477   1 409   51 051    
Total liabilities                   
Reportable segment liabilities  (6 986) (43 134) (16 413) 8 391  (58 142)   

Notes to the consolidated annual financial statements | Note 1