MULTICHOICE SOUTH AFRICA HOLDINGS PROPRIETARY …€¦ · MULTICHOICE SOUTH AFRICA HOLDINGS...

MULTICHOICE SOUTH AFRICA HOLDINGS PROPRIETARY LIMITED(Registration number 2006/015293/07)

Group and company annual financial statementsfor the year ended 31 March 2018

MULTICHOICE SOUTH AFRICA HOLDINGS PROPRIETARY LIMITED(Registration number 2006/015293/07)Group Annual Financial Statements for the year ended 31 March 2018

General Information

Prominent Notice

These annual financial statements have been audited by our external auditors PricewaterhouseCoopers Inc. in compliance withthe applicable requirements of the Companies Act, No 71 of 2008. Rochelle Gabriels (Group Chief Financial Officer)supervised the preparation of the annual financial statements.

Country of incorporation and domicile South Africa

Nature of business and principal activities Video-entertainment and internet subscriber platforms

Directors

DG Eriksson

FLN Letele

JJ Volkwyn

KB Sibiya

KD Moroka

S Dakile-Hlongwane

SJZ Pacak

B van Dijk

E Masilela

U Raman

Registered office 144 Bram Fischer Drive

Randburg

2194

Postal address P O Box 1502

Randburg

2125

Holding company MIH Holdings Proprietary Limited

Ultimate holding company Naspers Limited

Auditors PricewaterhouseCoopers Inc.

Company secretary (Acting) RJ Gabriels

1


The reports and statements set out below comprise the group and company annual financial statements presented to theshareholders:

Index Page (s)

Audit Committee Report 3 - 4

Directors' Responsibilities and Approval 5

Directors' Report 6 - 7

Company Secretary’s Certification 8

Independent Auditor's Report 9 - 12

Group Statement of Financial Position 13

Group Statement of Profit or Loss and Other Comprehensive Income 14

Group Statement of Changes in Equity 15

Group Statement of Cash Flows 16

Group and Company Accounting Policies 17 - 35

Notes to the Group Annual Financial Statements 36 - 92

Company Statement of Financial Position 93

Company Statement of Profit or Loss 94

Company Statement of Changes in Equity 95

Company Statement of Cash Flows 96

Notes to the Company Annual Financial Statements 97

2


Audit Committee Report

1. Members of the Audit Committee

The members of the audit committee are all independent non-executive directors of the group and include:

Name of committee member QualificationsDG Eriksson Chartered Accountant (SA)

S Dakile-Hlongwane Bachelor of Economics and StatisticsMaster of Development Economics

E Masilela Bachelor of Arts in Social Sciences (Economics and Statistics)

The committee is satisfied that the members thereof have the required knowledge and experience as set out in Section 94(5) ofthe Companies Act 71 of 2008 and Regulation 42 of the Companies Regulation, 2011.

2. Meetings held by the Audit Committee

The audit committee performs the duties laid upon it by Section 94(7) of the Companies Act 71 of 2008 by holding meetingswith the key role players on a regular basis and by the unrestricted access granted to the external auditors.

The audit committee meets at least three times per annum in accordance with the charter. All members act independently asdescribed in section 94 of the Companies Act. During the year under review, the following four meetings were held:

Date of meeting Attendees08 June 2017 All attended18 September 2017 D Eriksson (chairman) and E Masilela attended09 November 2017 All attended29 November 2017 All attended30 November 2017 All attended16 December 2017 All attended19 January 2018 All attended19 March 2018 D Eriksson (chairman) and E Masilela attended

3. External auditors

The committee satisfied itself through enquiry that the external auditors are independent as defined by the Companies Act 71of 2008 and as per the standards stipulated by the auditing profession. Requisite assurance was sought and provided by theCompanies Act 71 of 2008 that internal governance processes within the firm support and demonstrate the claim toindependence.

The audit committee in consultation with executive management, agreed to the terms of the engagement. The audit fee for theexternal audit has been considered and approved taking into consideration such factors as the timing of the audit, the extent ofthe work required and the scope.

3


Directors' Report

The directors have pleasure in submitting their report on the group annual financial statements of MultiChoice South AfricaHoldings Proprietary Limited and its subsidiaries, associates and joint ventures for the year ended 31 March 2018.

1. Nature of operations

MultiChoice South Africa Holdings Proprietary Limited ("MCSAH") was incorporated on 19 May 2006 under the laws of theRepublic of South Africa. The principal activities of MCSAH and its operating subsidiaries, joint ventures and associatedcompanies (collectively "the group") are the operation of video-entertainment and internet subscriber platforms. These activitiesare conducted primarily in South Africa.

In June 2017, the assets and liabilities of Huntley Media Services Proprietary Limited (formerly MWEB Connect ProprietaryLimited) were sold. There have been no further material changes to the nature of the company's business from the prior year.

2. Operating and financial review

The group and company annual financial statements have been prepared in accordance with International Financial ReportingStandards (IFRS) and the requirements of the Companies Act 71 of 2008. The accounting policies have been appliedconsistently compared to the prior year.

The Group recorded a net profit after tax for the year ended 31 March 2018 of R7 789 million. This represented an increase of14.1% from the net profit after tax of the prior year of R6 828 million.

Group revenue decreased by 1% from R40 544 million in the prior year to R40 165 million for the year ended 31 March 2018.

Group cash flows from operating activities decreased by (18)% from R9 054 million in the prior year to R 7 461 million for theyear ended 31 March 2018.

3. Share capital

There have been no changes to the authorised or issued share capital during the year under review.

4. Directorate

The directors in office at the date of this report are as follows:

DG ErikssonFLN LeteleJJ VolkwynKB SibiyaKD MorokaS Dakile-HlongwaneSJZ PacakB van DijkE MasilelaU Raman

In terms of the Memorandum of Incorporation Mrs S Dakile-Hlongwane, Advocate KD Moroka and Mr. SJZ Pacak must retireby rotation at the upcoming annual general meeting on 31 August 2018.

6


Directors' Report

5. Property, plant and equipment

There was no change in the nature of the property, plant and equipment of the group or in the policy regarding their use.

At 31 March 2018 the group's investment in property, plant and equipment amounted to R11 199 million (2017: R 12 169million), of which R431 million (2017: R 7 185 million) was added in the current year through additions.

The group has commitments in respect of contracts placed for capital expenditure to the amount of R92.1 million (2017: R 60.3 million). These commitments have been approved by the board of the group. Refer to note 32 of the group andcompany annual financial statements for further details.

6. Dividends

An ordinary dividend of R6.5 billion (2017: R 6.5 billion) was paid in the current year. The ordinary dividend paid was 1925.93cents per share (2017: 1925.93 cents per share). The board recommends that an ordinary dividend of R6.6 billion (1955.56 cents per share) be declared for the next financial year.

7. Group

MCSAH's principal shareholders are MIH Holdings Proprietary Limited, Phuthuma Nathi Investments (RF) Limited andPhuthuma Nathi Investments 2 (RF) Limited, who own 80%, 13.3% and 6.7% respectively. MCSAH's ultimate controlling partyis Naspers Limited, a company listed on the JSE Securities Exchange of South Africa. All subsidiaries, joint ventures andassociates share the same financial year-end as MCSAH.

The name, country of incorporation and effective financial percentage interest in each of the group's principal subsidiaries, jointarrangements and associates are disclosed in notes 7, 8 & 9.

8. Auditors

PricewaterhouseCoopers Inc. will continue in office as auditors for the group for the next financial year.

At the AGM, the shareholders will be requested to reappoint PricewaterhouseCoopers Inc. as the independent external auditorsof the company and to confirm Ms AM Motaung as the designated lead audit partner for the 2019 financial year.

9. Secretary

On 19 March 2018, Mrs CC Koopman stepped down as company secretary for MultiChoice South Africa Holdings ProprietaryLimited to take up a role in the MultiChoice Africa business. Mrs RJ Gabriels was subsequently appointed as acting companysecretary on 20 March 2018, until such time as the board has appointed a permanent company secretary.

10. Borrowings

The company has unlimited borrowing powers in terms of its Memorandum of Incorporation.

11. Events after the reporting date

The directors are not aware of any other material event which occurred after the reporting date and up to the date of this report.

12. Going concern

The directors are satisfied that the company is in sound financial position and that sufficient borrowing facilities and cashreserves are accessible in order to enable the company to meet their foreseeable commitment requirements. On this basisthey have considered that the company has adequate resources to continue operating for the foreseeable future and thereforedeem it adequate to adopt the going concern basis in preparing the financial statements for this reporting period.

7

PricewaterhouseCoopers Inc., 4 Lisbon Lane, Waterfall City, Jukskei View, 2090 Private Bag X36, Sunninghill, 2157, South Africa T: +27 (0) 11 797 4000, F: +27 (0) 11 209 5800, www.pwc.co.za

Chief Executive Officer: T D Shango Management Committee: S N Madikane, J S Masondo, P J Mothibe, C Richardson, F Tonelli, C VolschenkThe Company's principal place of business is at 4 Lisbon Lane, Waterfall City, Jukskei View, where a list of directors' names is available for inspection.Reg. no. 1998/012055/21, VAT reg.no. 4950174682

Independent auditor’s report To the Shareholders of MultiChoice South Africa Holdings Proprietary Limited

Our opinion

In our opinion, the consolidated and separate financial statements present fairly, in all material respects, the consolidated and separate financial position of MultiChoice South Africa Holdings Proprietary Limited (the Company) and its subsidiaries (together the Group) as at 31 March 2018, and its consolidated and separate financial performance and its consolidated and separate cash flows for the year then ended in accordance with International Financial Reporting Standards and the requirements of the Companies Act of South Africa.

What we have audited

MultiChoice South Africa Holdings Proprietary Limited’s consolidated and separate financial statements set out on pages 14 to 98 comprise:

the group and company statements of financial position as at 31 March 2018;

the group and company statements of profit or loss and other comprehensive income for the yearthen ended;

the group and company statements of changes in equity for the year then ended;

the group and company statements of cash flows for the year then ended; and

the notes to the financial statements, which include a summary of significant accounting policies.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the consolidated and separate financial statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Group in accordance with the Independent Regulatory Board for Auditors Code of Professional Conduct for Registered Auditors (IRBA Code) and other independence requirements applicable to performing audits of financial statements in South Africa. We have fulfilled our other ethical responsibilities in accordance with the IRBA Code and in accordance with other ethical requirements applicable to performing audits in South Africa. The IRBA Code is consistent with the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (Parts A and B).

9

10

Other information

The directors are responsible for the other information. The other information obtained at the date of this auditor’s report comprises the information included in the Group and company annual financial statements, which includes the Directors’ Report, the Audit Committee Report and the Group and Company Secretary’s Certification as required by the Companies Act of South Africa. Other information does not include the consolidated and separate financial statements and our auditor’s report thereon.

Our opinion on the consolidated and separate financial statements does not cover the other information and we do not express an audit opinion or any form of assurance conclusion thereon.

In connection with our audit of the consolidated and separate financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated and separate financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the directors for the consolidated and separate financial statements

The directors are responsible for the preparation and fair presentation of the consolidated and separate financial statements in accordance with International Financial Reporting Standards and the requirements of the Companies Act of South Africa, and for such internal control as the directors determine is necessary to enable the preparation of consolidated and separate financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated and separate financial statements, the directors are responsible for assessing the Group and the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group and/or the Company or to cease operations, or have no realistic alternative but to do so.

11

Auditor’s responsibilities for the audit of the consolidated and separate financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated and separate financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated and separate financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the Company’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s and the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated and separate financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group and / or Company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the consolidated and separate financial statements, including the disclosures, and whether the consolidated and separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

12

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

PricewaterhouseCoopers Inc. Director: SN Madikane Registered Auditor Johannesburg 8 June 2018


Group Statement of Financial Position as at 31 March 2018Note(s) 2018 R'000 2017 R'000

AssetsNon-Current Assets

Property, plant and equipment 4 11 199 147 12 169 096

Goodwill 5 3 268 425 3 268 425

Intangible assets 6 582 615 561 785

Investments in associates 9 (38 006) (33 401)

Investments in joint ventures 8 15 232 107 451

Deferred tax 13 835 982 1 135 887

Amounts due from related parties 26 1 077 707 571 932

Other financial assets 11 105 600 152 400

Derivative asset 10 - 27 075

Programme and film rights 15 - 3 756

17 046 702 17 964 406

Current Assets

Inventories 14 54 706 81 885

Programme and film rights 15 2 568 063 2 412 828

Trade receivables 16 987 705 1 146 447

Other receivables 17 365 915 510 557

Amounts due from related parties 26 1 172 256 1 628 807

Derivative assets 10 20 159 78 026

Prepayments 18 2 612 255 1 408 272

Cash and cash equivalents 19 2 272 620 2 600 694

10 053 679 9 867 516

Assets of disposed group classified as held for sale 31 - 377 907

Total Assets 27 100 381 28 209 829

Equity and LiabilitiesEquity

Share capital and share premium 20 17 216 270 17 216 270

Reserves 21 (15 771 952) (15 235 408)

Retained income 7 423 991 6 116 745

8 868 309 8 097 607

LiabilitiesNon-Current Liabilities

Finance lease obligation 22 8 260 071 9 680 266

Share based payment liability 29 68 464 81 727

Derivative liability 10 404 097 71 100

Deferred tax liability 13 107 277 256 308

Amounts due to related parties 26 37 478 38 140

8 877 387 10 127 541

Current Liabilities

Finance lease obligation 22 308 778 334 700

Payable for programme and film rights 24 1 460 228 1 520 173

Other payables 30 3 779 704 3 903 813

Provisions 25 187 311 100 909

Trade payables 2 123 697 2 752 690

Share based payment liability 29 72 512 73 596

Amounts due to related parties 26 298 729 272 515

Derivative liability 10 1 067 630 727 334

Current taxation payable 42 56 096 82 027

9 354 685 9 767 757

Liabilities of disposal group classified as held for sale 31 - 216 924

Total Liabilities 18 232 072 20 112 222

Total Equity and Liabilities 27 100 381 28 209 829

13


Group Statement of Profit or Loss and Other Comprehensive Income2018 2017

Note(s) R '000 R '000

Revenue 33 40 165 003 40 543 644

Cost of providing services and sale of goods (21 544 531) (22 799 870)

Gross profit 18 620 472 17 743 774

Other gains 34 18 489 19 648

Selling, general and administration costs (7 959 148) (7 602 656)

Operating profit 35 10 679 813 10 160 766

Finance income 36 320 841 212 384

Foreign exchange differences 38 659 995 (250 524)

Impairment of equity-accounted investments 8&9 (201) (10 311)

Share of equity-accounted investments' results 8&9 (96 767) (66 843)

Profit on sale of business 47 117 756 87 456

Finance costs 37 (644 929) (673 717)

Profit before taxation 11 036 508 9 459 211

Taxation 40 (3 247 202) (2 631 432)

Net profit for the year 7 789 306 6 827 779

Items of other comprehensive income that may be reclassified to profit or loss:

Foreign currency translations

Net loss, gross - (58)

Changes in value of available-for-sale investments, up to and including the dateof sale

- Net losses in the changes in value of available-for-sale investment, gross (46 800) (18 000)

Changes in value of cash flow hedges

- Net losses in the changes in cash flow hedges, gross (608 624) (697 463)

- Net losses in the changes in cash flow hedges, tax 170 204 163 847

Total other comprehensive income for the year (485 220) (551 674)

Total comprehensive income for the year 7 304 086 6 276 105

Profit attributable to:

Owners of the parent 7 789 306 6 827 779

Total comprehensive income attributable to:

Owners of the parent 7 304 086 6 276 105

The notes on pages 17 to 92 are an integral part of the group and company annual financial statements.

14


Group Statement of Changes in EquityShare capital Share premium Total share

Capital andpremium

Foreigncurrency

translationreserve

Hedgingreserve

Fair valuereserve

Share basedpaymentreserve

Existing controlbusiness

combinationreserve

Retainedearnings

Total equity

R '000 R '000 R '000 R '000 R '000 R '000 R '000 R '000 R '000 R '000

Balance at 01 April 2016 34 17 216 236 17 216 270 238 119 791 175 381 199 350 (15 088 135) 5 659 544 8 282 439

Profit for the year - - - - - - - - 6 827 779 6 827 779Other comprehensive income - - - (58) (533 616) (18 000) - - - (551 674)

Total comprehensive income for the year - - - (58) (533 616) (18 000) - - 6 827 779 6 276 105

Transfer between reserves - - - - - - - 37 161 (37 241) (80)Adjustment to AASL disposal - - - - - - (127 520) - 166 663 39 143Dividends (Refer to note 45) - - - - - - - - (6 500 000) (6 500 000)

Total contributions by and distributions to owners ofcompany recognised directly in equity

- - - - - - (127 520) 37 161 (6 370 578) (6 460 937)

Balance at 01 April 2017 34 17 216 236 17 216 270 180 (413 825) 157 381 71 830 (15 050 974) 6 116 745 8 097 607

Profit for the year - - - - - - - - 7 789 306 7 789 306Other comprehensive income - - - - (438 419) (46 800) - - - (485 219)

Total comprehensive income for the year - - - - (438 419) (46 800) - - 7 789 306 7 304 087

Transfer between reserves - - - - - - (17 940) - 17 940 -Share based compensation movement - - - - - - (33 385) - - (33 385)Dividends (Refer to note 45) - - - - - - - - (6 500 000) (6 500 000)

Total contributions by and distributions to owners ofcompany recognised directly in equity

- - - - - - (51 325) - (6 482 060) (6 533 385)

Balance at 31 March 2018 34 17 216 236 17 216 270 180 (852 244) 110 581 20 505 (15 050 974) 7 423 991 8 868 309

Note(s) 20 20 20 21


15


Group Statement of Cash Flows2018 2017

Note(s) R '000 R '000

Cash flows from operating activities

Cash receipts from customers 39 259 772 40 958 044

Cash paid to suppliers and employees (28 685 877) (29 049 675)

Cash generated from operations 41 10 573 895 11 908 369

Net interest paid 43 (157 480) (218 011)

Dividends received from Phuthuma Nathi Investments 2 (RF) Limited (listedinvestments)

18 489 19 648

Tax paid 42 (2 974 077) (2 655 980)

Net cash from operating activities 7 460 827 9 054 026

Cash flows from investing activities

Purchase of property, plant and equipment 44 (431 105) (734 741)

Proceeds from disposal of property, plant and equipment 113 952 145 225

Purchase of other intangible assets (221 968) (252 883)

Proceeds from disposal of other intangible assets 7 500 275

Acquisition of subsidiary 46 - (972)

Disposal of subsidiary 47 - 220 000

Disposal of joint venture - (2 485)

Additional investment in associate 9 - (9 800)

Loans granted to associate - (29 820)

Prepayment of transponder - (50 151)

Disposal of business 47 141 140 -

Net cash used in investing activities (390 481) (715 352)

Cash flows from financing activities

Proceeds from long term loans 23 - 2 200 000

Payments of long term borrowings 23 - (2 483 339)

Finance lease payments (295 715) (335 464)

Dividends paid (6 500 000) (6 500 000)

Related party funding (500 408) (563 202)

Purchase of shares for share based compensation (29 078) (13 204)

Net cash used in financing activities (7 325 201) (7 695 209)

Total cash movement for the year (254 855) 643 465

Cash at the beginning of the year 2 600 694 2 285 960

Effect of exchange rate movement on cash balances (73 966) (245 072)

Reclassification of cash to held for sale 747 (83 659)

Total cash at end of the year 19 2 272 620 2 600 694


16


Group and Company Accounting Policies

1. Presentation of group and company annual financial statements

The group and company annual financial statements have been prepared in accordance with International FinancialReporting Standards (IFRS), International Financial Reporting Interpretations Committee (IFRIC), interpretations issued andeffective at the time of preparing these financial statements and the South African Companies Act 71 of 2008, as amended.The group and company annual financial statements have been prepared on the historical cost basis as modified by therevaluation of available-for-sale financial assets, financial assets and liabilities (including derivative instruments) held at fairvalue through profit and loss with the movements recognised in the statement of comprehensive income, and incorporatethe principal accounting policies set out below. They are presented in South African Rands.

The accounting policies have been applied consistently compared to the prior year, with the exception of new standardsrequired to be adopted in terms of IFRS. For further details refer to note 2.

1.1 Consolidation

Basis of consolidation

The group annual financial statements incorporate the results of MultiChoice South Africa Holdings Proprietary Limited andits subsidiaries, associates and joint ventures.

MultiChoice South Africa Holdings Proprietary Limited has control of an investee when it has power over the investee; it isexposed to or has rights to variable returns from involvement with the investee; and it has the ability to use its power overthe investee to affect the amount of the investor's returns.

Subsidiaries

The results of subsidiaries are included in the group annual financial statements from the effective date of acquisition to theeffective date of disposal.

All intra-group transactions, balances and unrealised gains and losses are eliminated in full on consolidation. Profits andlosses arising from inter-company transactions that are recognised in assets are also eliminated. Accounting policies ofsubsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.

Transactions which result in changes in ownership levels, where MultiChoice South Africa Holdings Proprietary Limited hascontrol of the subsidiary both before and after the transaction are regarded as equity transaction and are recognised directlyin the statement of changes in equity in the existing control business combination reserve. The difference between the fairvalue of consideration paid or received and the movement in non-controlling interest for such transactions is recognised inequity attributable to the owners of the parent.

Where a subsidiary is disposed of and a non-controlling shareholding is retained, the remaining investment is measured tofair value with the adjustment to fair value recognised in profit or loss as part of the gain or loss on disposal of thecontrolling interest.

17



1.1 Consolidation (continued)

Business combinations

Business combinations are accounted for using the acquisition method. The consideration transferred in an acquisition of abusiness (acquiree) comprises the fair values of the assets transferred, the liabilities assumed, the equity interests issuedby the group and the fair value of any contingent consideration arrangements. If the contingent consideration is classifiedas equity, it is not subsequently remeasured and settlement is accounted for within equity. Otherwise, subsequent changesto the fair value of contingent consideration are recognised in the income statement.

For each business combination, the group measures the non-controlling interest in the acquiree at the non-controllinginterest’s proportionate share of the acquiree’s identifiable net assets. Costs related to the acquisition, other than thoseassociated with the issue of debt or equity securities, are expensed as incurred.

Where a business combination is achieved in stages, the group’s previously held equity interest in the acquiree isremeasured to fair value as at the acquisition date through the income statement. The fair value of the group’s previouslyheld equity interest forms part of the consideration transferred in the business combination at the acquisition date.

When a selling shareholder is required to remain in the group’s employment subsequent to a business combination, anyretention option arrangements are recognised as employee benefit arrangements and dealt with in terms of the accountingpolicy for employee or equity compensation benefits.

Goodwill

Goodwill in a business combination is recognised at the acquisition date when the consideration transferred and therecognised amount of non-controlling interests exceeds the fair value of the net identifiable assets of the entity acquired. Ifthe consideration transferred is lower than the fair value of the identifiable net assets of the acquiree (a bargain purchase),the difference is recognised in the income statement. The gain or loss on disposal of an entity is calculated afterconsideration of attributable goodwill.

Disposals

When the group ceases to have control (subsidiaries) or significant influence (associates), any retained interest in the entityis remeasured to its fair value, with the change in the carrying amount recognised in profit or loss. The fair value is the initialcarrying amount for the purposes of subsequent accounting for the retained interest as an associate, joint venture orfinancial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity areaccounted for as if the group had directly disposed of the related assets or liabilities. This may mean that amountspreviously recognised in other comprehensive income are reclassified to profit or loss.

Common control transactions

Business combinations in which all of the combining entities or businesses are ultimately controlled by the same party orparties both before and after the business combination (and where that control is not transitory), are referred to as commoncontrol transactions. The accounting policy for the acquiring entity would be to account for the transaction at book values inits consolidated financial statements. The book values of the acquired entity are the consolidated book values as reflectedin the group annual financial statements of the selling entity. The excess of the cost of the transaction over the acquirer'sproportionate share of the net asset value acquired in common control transactions, will be allocated to the existingbusiness combination reserve in equity. Where comparative periods are presented, the financial statements and financialinformation are not restated. Accounting policies of subsidiaries have been changed where necessary to ensureconsistency with the policies adopted by the group.

Transactions with non-controlling shareholders

Non-controlling shareholders are equity participants of the group and all transactions with non-controlling shareholders aretherefore accounted for as equity transactions and included in the statement of changes in equity. In transactions with non-controlling shareholders, any excess of the cost/proceeds of the transaction over the group’s proportionate share of the netasset value acquired/disposed is allocated to the “Existing control business combination reserve” in equity.

18




Investment in associates

An associate is an entity over which the group has significant influence and which is neither a subsidiary nor a joint venture.Significant influence is the power to participate in the financial and operating policy decisions of the investee but is notcontrol or joint control over those policies.

An investment in associate is accounted for using the equity method, except when the investment is classified as held-for-sale in accordance with IFRS 5 (Non-current assets held-for-sale and discontinued operations). Under the equity method,investments in associates are carried in the group statement of financial position at cost adjusted for post acquisitionchanges in the group's share of net assets of the associate, less any impairment losses.

Losses in an associate in excess of the group's interest in that associate are recognised only to the extent that the grouphas incurred a legal or constructive obligation to make payments on behalf of the associate.

Any goodwill on acquisition of an associate is included in the carrying amount of the investment, however, a gain onacquisition is recognised immediately in profit or loss.

Profits or losses on transactions between the group and an associate are eliminated to the extent of the group's interesttherein.

When the group reduces its level of significant influence or loses significant influence, the group proportionately reclassifiesthe related items which were previously accumulated in equity through other comprehensive income to profit or loss as areclassification adjustment. In such cases, if an investment remains, that investment is measured to fair value, with the fairvalue adjustment being recognised in profit or loss as part of the gain or loss on disposal.

The group applies the “cost of each purchase” method for step acquisitions of associates. With this method the cost of anassociate acquired in stages is measured as the sum of the consideration paid for each purchase plus a share of theinvestee’s profits and other equity movements. Any other comprehensive income recognised in prior periods in relation tothe previously held stake in the acquired associate is reversed through equity and a share of profits and other equitymovements is also recorded in equity. Any acquisition-related costs are treated as part of the investment in the associate.

When the group increases its shareholding in an associate and continues to have significant influence, the group adds thecost of the additional investment to the carrying value of the associate. The goodwill arising is calculated based on the fairvalue information at the date the additional interest is acquired.

The group's share of post-acquisition profit or loss is recognised in profit or loss and its share of post-acquisitionmovements in other comprehensive income, with a corresponding adjustment to the carrying amount of the investment.Where the group's share of losses in the associate equals or exceeds its interest in the associate, including any unsecuredreceivables, the group does not recognise further losses, unless it has incurred legal or constructive obligations or madepayments on behalf of the associate. The cumulative post-acquisition movements are adjusted against the carrying amountof the investment. Dividends receivable from associates are recognised as a reduction in the carrying amount of theinvestment.

The group determines at each reporting date whether there is any objective evidence that the investment in the associate isimpaired. If this is the case, the group calculates the amount of impairment as the difference between the recoverableamount of the associate and its carrying value and recognises the amount adjacent to 'share of profit / (loss) of associates'in the statement of profit or loss.

Profits and losses resulting from upstream and downstream transactions between the group and its associates arerecognised in the group's financial statements only to the extent of the unrelated investor's interests in the associates.Unrealised losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred.Accounting policies of associates have been changed where necessary to ensure consistency of the policies adopted bythe group.

Dilution gains and losses arising on disposal of investments in associates are recognised in the statement of profit or loss.

19




Joint ventures

A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights tothe net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, whichexists only when decisions about the relevant activities require unanimous consent of the parties sharing control.

An interest in a joint venture is accounted for using the equity method, except when the investment is classified as held-for-sale in accordance with IFRS 5 (Non-current assets held-for-sale and discontinued operations). Under the equity method,interests in joint ventures are carried in the consolidated statement of financial position at cost adjusted for post acquisitionchanges in the company's share of net assets of the joint venture, less any impairment losses. Profits or losses ontransactions between the company and a joint venture are eliminated to the extent of the company's interest therein.

Goodwill relating to the associate or joint venture is included in the carrying amount of the investment and is neitheramortised nor individually tested for impairment.

The group recognises the portion of gains or losses on the sale of assets by the group to the joint venture that is attributableto the other venturers. The group does not recognise its share of gains or losses from the joint venture that results from thepurchase of assets by the group from the joint venture until it resells the assets to an independent third party. However, if aloss on the transaction provides evidence of a reduction in the net realisable value of current assets or an impairment loss,the loss is recognised immediately.

When the company loses joint control, the group proportionately reclassifies the related items which were previouslyaccumulated in equity through other comprehensive income to profit or loss as a reclassification adjustment. In such cases,if an investment remains, that investment is measured to fair value, with the fair value adjustment being recognised in profitor loss as part of the gain or loss on disposal.

Where necessary, accounting policies for joint ventures have been changed to ensure consistency with the policiesadopted by the group.

1.2 Investments in subsidiaries

The cost of an investment in a subsidiary is the aggregate of: the fair value, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued

by the company; plus any costs directly attributable to the purchase of the subsidiary.

An adjustment to the cost of a business combination contingent on future events is included in the cost of the combination if theadjustment is probable and can be measured reliably.

1.3 Investments in associates

An investment in an associate is carried at cost less any accumulated impairment.

20



1.4 Financial instruments

Financial assets

The group classifies its investments in debt and equity securities into financial assets at fair value through profit or loss,available-for-sale financial assets and loans and receivables. The classification is dependent on the purpose for which theinvestments were acquired. Management determines the classification of its investments at the time of initial recognitionand, where required, re-evaluates such designation on an annual basis.

All financial assets at fair value through profit or loss are classified as held for trading and are derivative financialinstruments. A financial asset is classified into this category at inception if acquired principally for the purpose of selling inthe short term, if it forms part of a portfolio of financial assets in which there is evidence of short-term profit taking, or, ifpermitted to do so, designated by management. Derivatives are also classified as held for trading unless they aredesignated as effective hedging instruments.

Available-for-sale financial assets are non-derivative financial assets that are either designated in this category or notclassified in any other financial instrument category. The group has classified equity investments that are not held fortrading in this category.

Financial assets are presented as non-current assets, except for those with maturities within 12 months from thestatement of financial position date, which are classified as current assets.

Purchases and sales of financial assets are recognised on the trade date, which is the date that the group commits topurchase or sell the asset. Financial assets are initially recognised at fair value plus, in the case of financial assets notcarried at fair value through profit or loss, transaction costs that are directly attributable to their acquisition.

At fair value through profit or loss and available-for-sale financial assets are subsequently carried at fair value withchanges in fair value recognised in the income statement and statement of comprehensive income, respectively. Referto note 12 for the group’s fair-value measurement methodology regarding financial assets.

The group assesses, at each statement of financial position date, or earlier when such assessment is prompted, whetherthere is objective evidence that a financial asset or group of financial assets may be impaired. If any such evidence exists,the amount of any impairment loss is established as outlined below.

For loans and receivables, the impairment loss is measured as the difference between the financial asset’s carrying amountand the present value of its estimated future cash flows, discounted at the financial asset’s original effective interest rate.The carrying amount of the financial asset is reduced directly through the income statement for impairment losses that canbe attributed to an individual financial asset and via an allowance account for impairment losses relating to a group offinancial assets. An impairment loss recognised on a financial asset in a previous reporting period is reversed through theincome statement if the estimates used to calculate the recoverable amount have changed since the previous impairmentloss was recognised.

Where available-for-sale financial assets are impaired, the cumulative gains or losses previously recognised in othercomprehensive income are reclassified to the income statement.

Financial assets are derecognised when the rights to receive cash flows from the investments have expired or where theyhave been transferred and the group has also transferred substantially all risks and rewards of ownership.

Financial assets are offset and the net amount reported in the statement of financial position when there is a legallyenforceable right to offset the recognised amounts and there is an intention to realise the asset and settle a related financialliability simultaneously.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in anactive market. They are included in current assets, except for maturities greater than twelve months after the end of thereporting period, which are classified as non-current assets. The group's loans and receivables comprise 'trade and otherreceivables', 'amounts due from related parties' and 'cash and cash equivalents' in the statement of financial position.

Loans and receivables are carried at amortised cost after initial recognition using the effective interest method.

21



1.4 Financial instruments (continued)

Financial liabilities

The group classifies its financial liabilities into financial liabilities at fair value through profit or loss, other financial liabilitiesand written put option liabilities. Financial liabilities are recognised when the group becomes party to the contractualprovisions of the relevant instrument.

All financial liabilities at fair value through profit or loss are derivative financial instruments and are accordingly classified asheld for trading. Financial liabilities at fair value through profit or loss are initially recognised at fair value, excludingtransactions costs, and are subsequently carried at fair value with changes in fair value recognised in the incomestatement.

Other financial liabilities comprise trade and other payables and borrowings. Other financial liabilities are initiallyrecognised at fair value, net of transaction costs, and are subsequently carried at amortised cost using the effectiveinterest method.

Financial liabilities are presented as current liabilities if payment is due or could be demanded within 12 months (or in thenormal operating cycle of the business if longer). If not, they are presented as non-current liabilities. Financial liabilities areoffset and the net amount reported in the statement of financial position when there is a legally enforceable right to offsetthe recognised amounts and there is an intention to settle on a net basis. Financial liabilities are derecognised when thecontractual obligation is discharged, cancelled or when it expires.

Financial instruments used for hedge accounting

The group uses derivative financial instruments (derivatives) to reduce exposure to fluctuations in foreign currencyexchange rates and interest rates. These instruments mainly comprise forward exchange contracts and interest rate swapagreements. Forward exchange contracts protect the group from movements in exchange rates by fixing the rate at which aforeign currency asset or liability will be settled. Interest rate swap agreements protect the group from movements ininterest rates.

The group documents, at the inception of the transaction, the relationship between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. The group also documents its assessment, both at hedge inception and on an on-going basis, of whether the derivatives that are used in hedging transactions are expected to be and have been highly effective in offsetting changes in fair values or cash flows of hedged items. The fair values of derivatives used for hedging purposes are disclosed in note 12.

The method of recognising the resulting gain or loss arising on remeasurement of derivatives used for hedging isdependent on the nature of the item being hedged. The group designates a derivative as either a hedge of the fairvalue of a recognised asset, liability or firm commitment (fair value hedge), or a hedge of a forecast transaction or ofthe foreign currency risk of a firm commitment (cash flow hedge).

Changes in the fair value of derivatives that are designated, and qualify, as fair value hedges are recorded in the incomestatement, along with changes in the fair value of the hedged asset or liability that is attributable to the hedged risk.

Changes in the fair value of derivatives that are designated, and qualify, as cash flow hedges and that are highly effectiveare recognised in other comprehensive income and the ineffective part of the hedge is recognised in the income statement.Where the forecast transaction or firm commitment, of which the foreign currency risk is being hedged, results in therecognition of a non-financial asset or liability, the gains and losses previously deferred in other comprehensive income aretransferred from other comprehensive income and included in the initial measurement of the cost of such asset or liability.Otherwise, amounts deferred in other comprehensive income are transferred to the income statement and classified asincome or expense in the same periods during which the hedged transaction affects the income statement.

Certain derivative transactions, while providing effective economic hedges under the group’s risk management policies, donot qualify for hedge accounting. Changes in the fair value of derivatives that do not qualify for hedge accounting arerecognised immediately in the income statement.

When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, anycumulative gain or loss existing in other comprehensive income at that time remains in other comprehensive income and isrecognised when the committed or forecast transaction ultimately is recognised in the income statement. When acommitted or forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in othercomprehensive income is immediately reclassified to the income statement.

22



1.4 Financial instruments (continued)

Cash and cash equivalents

Cash and cash equivalents are carried in the statement of financial position at cost. Cash and cash equivalents comprisecash on hand and demand deposits, and other short-term highly liquid investments that are readily convertible within 3months to a known amount of cash and are subject to an insignificant risk of changes in value. These are initially andsubsequently recorded at fair value.

Bank overdraft and borrowings

Bank overdrafts and borrowings are initially measured at fair value, net of transaction costs incurred. Subsequently they aremeasured at amortised cost, using the effective interest rate method. Any difference between the proceeds (net oftransaction costs) and the settlement or redemption of borrowings is recognised over the term of the borrowings inaccordance with the group’s accounting policy for borrowing costs.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it isprobable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. Tothe extent that there is no evidence that some or all of the facility will be drawn-down, the fee is capitalised as a prepaymentfor liquidity services and amortised over the period of the facility to which it relates.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liabilityfor at least twelve months after the reporting date.

The group has certain financial liabilities in respect of programme and film rights which are measured at amortised costusing the effective interest rate method. Certain programme and film rights have settlement dates that are not short term innature; therefore these liabilities are recorded as non-current liabilities and have been recorded at the present value ofexpected future cash flows.

1.5 Property, plant and equipment

Property, plant and equipment are tangible assets which the group holds for its own use or for rental to others and whichare expected to be used for more than one year.

Item Average useful life

Land IndefiniteComputer equipment 1 to 10 yearsOffice equipment 2 to 17 yearsFurniture 5 yearsVehicles 2 to 10 yearsBuildings - Owned 10 to 50 yearsBuildings - Leased 5 yearsBuilding Improvements - Owned 4 to 50 yearsBuilding Improvements - Leased 5 yearsTransmission equipment - Owned 5 to 20 yearsTransmission equipment - Leased 15 years

The carrying values of property, plant and equipment are reviewed periodically to assess whether or not the net recoverableamount has declined below the carrying amount. In the event of such impairment, the carrying amount is reduced and thereduction is charged as an expense against income.

The residual value, useful life and depreciation method of each asset are reviewed at the end of each reporting period. Ifthe expectations differ from previous estimates, the change is accounted for as a change in accounting estimate.

Work in progress is defined as assets still in the construction phase and not yet available for use. These assets are carriedat initial cost and are not depreciated. Depreciation on these assets commence when they become available-for-use anddepreciation periods are based on management’s assessment of their useful lives.

The depreciation charge for each period is recognised in profit or loss unless it is included in the carrying amount of anotherasset.

23



1.5 Property, plant and equipment (continued)

The gain or loss arising from the derecognition of an item of property, plant and equipment is included in profit or loss whenthe item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipment isdetermined as the difference between the net disposal proceeds, if any, and the carrying amount of the item.

Major leasehold improvements are amortised over the shorter of their respective lease periods and estimated usefuleconomic life. The cost of major renovations is included in the carrying amount of the asset when it is probable that futureeconomic benefits will flow to the group and the cost can be reliably measured. Major renovations are depreciated over theremaining useful economic life of the related asset.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greaterthan its estimated recoverable amount.

1.6 Goodwill

Goodwill arises on the acquisition of subsidiaries, associates and joint ventures and operations and represents the excessof the consideration transferred over the fair value of the group's share of the net identifiable assets, liabilities andcontingent liabilities of the acquiree and the fair value of the non-controlling interest in the acquiree. Goodwill on acquisitionof subsidiaries and joint ventures is presented separately from 'other intangible assets' in the statement of financial position.Goodwill on acquisitions of associates is included in 'investment in associates'.

For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units (CGUs) or groups of CGUs that are expected to benefit from the synergies of the combination. Each unit orgroup of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill ismonitored for internal management purposes.

Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate apotential impairment. Any impairment is recognised immediately as an expense and is not subsequently reversed.

1.7 Intangible assets

An intangible asset is recognised when: it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity;

and the cost of the asset can be measured reliably.

Intangible assets are initially recognised at cost.

Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire and bring to use thespecific software. These costs are amortised over their estimated useful lives. Costs associated with maintaining softwareprogrammes are recognised as an expense as incurred. Development costs (software and website) that are directlyattributable to the design and testing of identifiable and unique software products controlled by the group are recognised asintangible assets when the following criteria are met:

it is technically feasible to complete the software product so that it will be available for use or sale; management intends to complete the software product and use or sell it; there is an ability to use or sell the software product; it can be demonstrated how the software product will generate probable future economic benefits; adequate technical, financial and other resources to complete the development and to use or sell the software

product are available; and the expenditure attributable to the software product during its development can be reliably measured.

Directly attributable costs that are capitalised as part of the software product include software development employee costsand an appropriate portion of the relevant overheads.

Other development expenditures that do not meet these criteria are expensed as incurred. Development costs previouslyrecognised as an expense are not recognised as an asset in a subsequent period.

No value is attributed to internally developed trademarks or similar rights and assets. The costs incurred to develop theseitems are charged to profit or loss in the period in which they are incurred.

24



1.7 Intangible assets (continued)

Naming rights are carried at cost and are amortised against income over the period that future benefits are expected toarise.

Transfer fees in respect of player contracts acquired are capitalised and amortised over the contract period. The groupregularly assesses whether there is any indication of impairment and any impairment loss is recognised immediately inprofit or loss.

The amortisation period and the amortisation method for intangible assets are reviewed every period-end.

Reassessing the useful life of an intangible asset with a finite useful life after it was classified as indefinite is an indicatorthat the asset may be impaired. As a result the asset is tested for impairment and the remaining carrying amount isamortised over its useful life.

Internally generated brands, mastheads, publishing titles, customer lists and items similar in substance are not recognisedas intangible assets.

Separately acquired intangible assets are shown at historical cost. Trademarks, brand names, subscriber bases, contentagreements, customer relationships, the analogue licence, film library and licences acquired in a business combination arerecognised at fair value at the acquisition date. These intangible assets have a finite useful life and are carried at cost lessaccumulated amortisation. Amortisation is calculated on the straight-line method to allocate the cost of trademarks andlicences over their estimated useful lives subject to the following limits:

Item Useful lifeIntellectual property rights 3 yearsBrand names 3 to 15 yearsSoccer player rights 1 to 5 yearsSubscriber base 2 to 5 yearsSoftware (including internally developed software) 2 to 10 yearsContent agreements 3 yearsCustomer relationships 5 yearsAnalogue license 4 yearsFilm library 2 years

1.8 Programme and film rights

Programme material rights

Purchased programme and film rights are stated at acquisition costs less accumulated amortisation. Programme materialrights, which consist of the rights to broadcast programmes, series and films, are recorded at the date the rights come intolicense at the spot rates on the purchase date. The rights are amortised based on contracted screenings or expensedwhere management have confirmed that it is their intention that no further screenings will occur.

Programme material rights contracted by the reporting date in respect of programmes, series and films not yet in licenseare disclosed as commitments.

Programme production costs

Programme production costs, which consist of all costs necessary to produce and complete a programme to be broadcast,are recorded at the lower of direct cost or net realisable value. Net realisable value is set at the average cost of programmematerial rights. Where a prepayment has been made on a right, the right will be recorded at the spot rate on prepaymentdate for the portion of the right prepaid and at the spot rate on licence date for the portion of the licence not prepaid.

Programme production costs are amortised based on contracted screenings or expensed where management haveconfirmed that it is their intention that no further screenings will occur.

All programme production costs in excess of the expected net realisable value of the production on completion, areexpensed when contracted.

25



Sports events rights

Sports events rights are recorded at the date that the period to which the events relate commences, at the rate of exchangeruling at that date. These rights are expensed over the period to which the events relate or where management hasconfirmed that it is its intention that the event will not be screened.

Payments made to negotiate and secure the broadcasting of sports events are expensed as incurred. Rights to future sportevents contracted by the reporting date, but which have not yet commenced, are disclosed as commitments, except wherepayments have already been made, which are shown as prepaid expenses.

1.9 Impairment of assets

Goodwill and intangible assets with indefinite useful lives

Goodwill and intangible assets with indefinite useful lives are tested annually for impairment and carried at cost lessaccumulated impairment losses.

Goodwill and intangible assets with indefinite useful lives are allocated to cash-generating units for purposes of impairmenttesting. The recoverable amount of a cash generating unit or individual asset is the higher of its value in use and its fairvalue less costs of disposal. An impairment test is performed by determining the recoverable amount of the cash-generatingunit to which the goodwill or intangible assets with indefinite useful lives relates. Where the recoverable amount is less thanthe carrying amount, an impairment loss is recognised in “Other gains/(losses) – net” in the income statement. Impairmentlosses recognised on goodwill are not reversed in subsequent periods.

An impairment loss is recognised for cash-generating units if the recoverable amount of the unit is less than the carryingamount of the units. The impairment loss is allocated to reduce the carrying amount of the assets of the unit in the followingorder:

first, to reduce the carrying amount of any goodwill allocated to the cash-generating unit and then, to the other assets of the unit, pro rata on the basis of the carrying amount of each asset in the unit.

An entity assesses at each reporting date whether there is any indication that an impairment loss recognised in priorperiods for assets other than goodwill may no longer exist or may have decreased. If any such indication exists, therecoverable amounts of those assets are estimated.

The increased carrying amount of an asset other than goodwill attributable to a reversal of an impairment loss does notexceed the carrying amount that would have been determined had no impairment loss been recognised for the asset inprior periods.

A reversal of an impairment loss of assets carried at cost less accumulated depreciation or amortisation other than goodwillis recognised immediately in profit or loss. Any reversal of an impairment loss of a revalued asset is treated as a revaluationincrease.

Other intangible assets and property, plant and equipment

Other intangible assets (with finite useful lives) and items of property, plant and equipment are reviewed for indicators ofimpairment at least annually. Indicators of impairment include, but are not limited to: significant underperformance relativeto expectations based on historical or projected future operating results, significant changes in the manner of use of theassets or the strategy for the group’s overall business and significant negative industry or economic trends.

Intangible assets still in the development phase, and not yet available for use (work in progress), are tested for impairmenton an annual basis.

An impairment loss is recognised in “Other (losses)/gains – net” in the income statement when the carrying amount of anasset exceeds its recoverable amount.

Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset andfrom its disposal at the end of its useful life. The estimated future cash flows are discounted to their present value using apre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

Fair value less costs of disposal is the price that would be received to sell an asset in an orderly transaction betweenmarket participants at the measurement date less the incremental costs directly attributable to the disposal of an asset orcash-generating unit, excluding finance costs and income tax expense.

26



1.9 Investments in subsidiaries (continued)

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separatelyidentifiable cash flows that are largely independent of the cash inflows of other assets or groups of assets (a cashgenerating unit level).

An impairment loss recognised for an asset in prior years is reversed if there has been a change in the estimates used todetermine the asset’s recoverable amount since the last impairment loss was recognised and the revised recoverableamount exceeds the carrying amount. The reversal of such an impairment loss is recognised in “Other (losses)/gains – net”in the income statement.

1.10 Inventories

Inventory is measured at the lower of cost and net realisable value on the first-in-first-out basis.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completionand the estimated costs necessary to make the sale.

The cost of finished products and work-in-progress comprises raw materials, direct labour, other direct costs and relatedproduction overheads, but excludes borrowing costs. Costs of inventories include the transfer from other comprehensiveincome of any gains or losses on qualifying cash flow hedges relating to inventory purchases.

When inventories are sold, the carrying amount of the inventories is recognised as an expense in the period in which therelated revenue is recognised. The amount of any write-down of inventories to net realisable value and all losses ofinventories is recognised as an expense in the period the write-down or loss occurs. The amount of any reversal of anywrite-down of inventories, arising from an increase in net realisable value, is recognised as a reduction in the amount ofinventories recognised as an expense in the period in which the reversal occurs.

1.11 Provisions and contingencies

Provisions are obligations of the group where the timing or amount (or both) of the obligation is uncertain.

Provisions are recognised when the group has a present legal or constructive obligation as a result of past events, it isprobable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliableestimate of the amount of the obligation can be made.

The group recognises a provision relating to its estimated exposure on all products still under warranty at the statement offinancial position date. A provision for onerous contracts is established when the expected benefits to be derived under acontract are less than the unavoidable costs of fulfilling the contract. Restructuring provisions are recognised in the periodin which the group becomes legally or constructively committed to a formal restructuring plan.

Provisions are reviewed at each statement of financial position date and adjusted to reflect the current best estimate.Where the effect of the time value of money is material, the amount of a provision is determined by discounting theanticipated future cash flows expected to be required to settle the obligation at a pre-tax rate that reflects current marketassessments of the time value of money and the risks specific to the liability. The increase in the provision due to thepassage of time is recognised as interest expense in the income statement.

The amount of a provision is the present value of the expenditure expected to be required to settle the obligation using apre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. Theincrease in the provision due to the passage of time is recognised as an interest expense in the statement of profit or loss.

Contingent assets and contingent liabilities are not recognised. Contingencies are disclosed in note 32.

1.12 Taxation

Tax expenses

The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement, except tothe extent that it relates to items recognised in other comprehensive income or directly in equity. In such cases, the relatedtax is also recognised in other comprehensive income or directly in equity, respectively.

27



1.12 Taxation (continued)

Current income tax

The normal South African company tax rate applied for the year ending 31 March 2018 is 28% (2017: 28%). The currentincome tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the statement of financialposition date in the countries where the group operates and generates taxable income. Management periodically evaluatespositions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation. Itestablishes provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities. Internationaltax rates vary from jurisdiction to jurisdiction.

Deferred taxation

Deferred tax assets and liabilities for South African entities at 31 March 2018 have been calculated using the 28% (2017:28%) tax rate, and for other entities using tax rates (and laws) that have been enacted or substantively enacted by thestatement of financial position date, being the rates the group expects to apply to the periods in which the assets arerealised or the liabilities are settled. Deferred taxation is provided on the taxable or deductible temporary differences arisingbetween the tax bases of assets and liabilities and their carrying values for financial reporting purposes. However, deferredtax liabilities are not recognised if they arise from the initial recognition of goodwill or from the initial recognition of an assetor liability in a transaction, other than a business combination, that, at the time of the transaction, affects neither theaccounting nor the taxable profit or loss. Deferred tax assets are recognised to the extent that it is probable that futuretaxable profit will be available against which deductible temporary differences and unused tax losses can be utilised.Deferred taxation is provided on temporary differences arising on investments in subsidiaries, associates and joint ventures,except where the timing of the reversal of the temporary difference is controlled by the group and it is probable that thetemporary difference will not reverse in the foreseeable future.

Withholding tax on dividends

Dividends paid on or after 22 February 2017 by MultiChoice South Africa Holdings Proprietary Limited to shareholders thatare not exempted from dividends withholding tax under South African tax law are subject to dividend withholding tax at arate of 20%. Dividends paid prior to this date are subject to dividend withholding tax at a rate of 15%.

1.13 Leases

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A leaseis classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.

Finance leases – lessee

Finance leases are recognised as assets and liabilities in the statement of financial position at amounts equal to the fairvalue of the leased property or, if lower, the present value of the minimum lease payments. The corresponding liability tothe lessor is included in the statement of financial position as a finance lease obligation.

The discount rate used in calculating the present value of the minimum lease payments is the interest rate implicit in thelease.

The lease payments are apportioned between the finance charge and reduction of the outstanding liability. The financecharge is allocated to each period during the lease term so as to produce a constant periodic rate on the remaining balanceof the liability.

Operating leases – lessee

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The differencesbetween the amounts recognised as an expense and the contractual payments is recognised as an operating lease assetor liability. This asset or liability is not discounted.

Any contingent rents are expensed in the period they are incurred.

28



1.14 Translation of foreign currencies

Functional and presentation currency

The consolidated annual financial statements are presented in Rand, which is the group's functional and presentation currency.All the material operations in the group have a Rand functional and presentation currency, which is the currency of the primaryeconomic environment in which these companies operate.

Transactions and balances

A foreign currency transaction is recorded, on initial recognition in Rands, by applying to the foreign currency amount the spotexchange rate between the functional currency and the foreign currency at the date of the transaction.

At the end of the reporting period: foreign currency monetary items are translated using the closing rate; non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the

exchange rate at the date of the transaction; and non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at

the date when the fair value was determined.

Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different fromthose at which they were translated on initial recognition during the period or in previous group and company annualfinancial statements are recognised in profit or loss in the period in which they arise, except when deferred in equity asqualifying cash flow hedges and qualifying net investment hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the statement ofprofit or loss within 'finance income or cost'. All other foreign exchange gains and losses are presented in profit or loss withincost of providing services and sale of goods or selling, general and administration costs.

Translation differences on non-monetary items, such as equities held at fair value through profit or loss, are reported as part ofthe fair value gain or loss.

Cash flows arising from transactions in a foreign currency are recorded in Rands by applying to the foreign currency amountthe exchange rate between the Rand and the foreign currency at the date of the cash flow.

Group companies

The results and financial position of a foreign operation are translated into the functional currency using the followingprocedures:

assets and liabilities for each statement of financial position presented are translated at the closing rate at the dateof that statement of financial position;

income and expenses for each item of profit or loss are translated at exchange rates at the dates of the transactions;and

all resulting exchange differences are recognised to other comprehensive income and accumulated as a separatecomponent of equity.

Exchange differences arising on a monetary item that forms part of a net investment in a foreign operation are recognisedinitially to other comprehensive income and accumulated in the translation reserve. They are recognised in profit or loss as areclassification adjustment through to other comprehensive income on disposal of net investment.

Any goodwill and fair value adjustments arising on the acquisition of a foreign operation and any fair value adjustments to thecarrying amounts of assets and liabilities arising on the acquisition of that foreign operation are treated as assets and liabilitiesof the foreign operation.

The cash flows of a foreign subsidiary are translated at the exchange rates between the functional currency and the foreigncurrency at the dates of the cash flows.

1.15 Revenue recognition

Revenue is measured as the fair value of the consideration received or receivable from the sale of goods and services inthe ordinary course of the group's activities. Revenue is shown net of value-added tax, returns, rebates and discounts andafter eliminating sales within the group.

29



1.15 Revenue recognition (continued)

The group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economicbenefits will flow to the group and when specific criteria have been met for each of the group's activities as described below.The amount is not considered to be reliably measurable until all contingencies relating to the sale have been resolved. Thegroup bases its estimates on historical results, taking into consideration the type of customer, the type of transaction andthe specifics of each arrangement.

Hardware sales

Sales relate mainly to decoders and are recognised upon delivery of products and customer acceptance, net of sales taxes,VAT and discounts, and after eliminating sales within the group. Sales of goods are recognised when a group entity hasdelivered products to the retailer, the retailer has full discretion over the channel and price to sell the products, and there isno unfulfilled obligation that could affect the retailer's acceptance of the products. Delivery does not occur until the productshave been shipped to the specified location, the risks of obsolescence and loss have been transferred to the retailer, andeither the retailer has accepted the products in accordance with the sales contract, or the group has objective evidence thatall criteria for acceptance have been satisfied.

Subscription and reconnection fees

Pay-television and internet subscription fees are earned over the period the services are provided. Subscription revenuearises from the monthly billing of subscribers for pay-television and internet services provided by the group. Revenue isrecognised in the month the service is rendered. Any subscription revenue received in advance of the service beingprovided is recorded as deferred revenue and recognised in the month the service is provided. Reconnection fees followthe same recognition criteria.

Advertising revenues

The group mainly derives advertising revenues from advertisements broadcast on its pay-television platforms and shownonline on its websites and instant messaging windows. Advertising revenues from pay-television are recognised uponshowing. Online advertising revenues are recognised over the period in which the advertisements are displayed.

Sponsorship revenues

Sponsorship revenue is recognised at the time sponsored programmes are broadcast.

Decoder maintenance revenue

Decoder maintenance revenue is recognised over the period the service is provided.

Programming and sub-license revenue

Program revenue is generated by providing content for broadcast. Revenue is recognised in the month the service isrendered. Any program revenue received in advance of the service being provided is recorded as deferred revenue andrecognised in the month the service is provided.

Barter revenue

Barter revenue derived by the company relates to sales and marketing benefits, and promotional merchandise receivedfrom external companies, in exchange for television airtime. Barter revenue is recognised over the period to which it relatesand barter revenue received for promotional merchandise related to sales and marketing is recognised once the underlyingmerchandise has been received. Barter revenue is recognised at the fair value of the underlying services or goodsreceived.

Management fees

Management fees are charged to compensate for costs incurred on behalf of the African businesses within South Africa.This includes staff costs, IT support and decoder development. These fees are earned over the period to which they relate.

30



1.16 Finance income

Finance income is recognised on a time-proportion basis using the effective interest rate method. Where a loan orreceivable is impaired, the group reduces the carrying amount to its recoverable amount, being the estimated future cashflow discounted at the original effective interest rate of the instrument, and continues unwinding the discount as financeincome. Interest income on impaired loans and receivables is recognised using the original effective interest rate.

1.17 Other income

Dividend income is recognised when the right to receive payment is established.

1.18 Employee benefits

Short-term employee benefits

The cost of short-term employee benefits, (those payable within 12 months after the service is rendered, such as paidvacation leave and sick leave, bonuses, and non-monetary benefits such as medical care), are recognised in the period inwhich the service is rendered and are not discounted.

The expected cost of compensated absences is recognised as an expense as the employees render services that increasetheir entitlement or, in the case of non-accumulating absences, when the absence occurs.

Bonus plans

The group recognises a liability and an expense for bonuses based on a formula that takes into consideration the profitattributable to the company's shareholders and various other performance related considerations. The group recognises aprovision where contractually obliged or where past practice has created a constructive obligation.

Medical aid benefits

The group's contributions to medical aid benefit funds for employees are recognised as an expense in the period duringwhich the employees render services to the group.

Defined contribution plans

The group provides retirement benefits for its full-time employees, primarily by means of monthly contributions to a numberof defined contribution pension and provident funds. The assets of these funds are generally held in separate trustee-administered funds. A defined contribution plan is a pension plan under which the group pays fixed contributions into aseparate entity. The group has no legal or constructive obligations to pay further contributions if the fund does not havesufficient assets to pay all employees the benefits relating to employee service in current and prior periods. The group'scontributions to retirement funds are recognised as an expense when the employees render the related service. The grouphas no further payment obligations once the contributions have been paid. Prepaid contributions are recognised as anasset to the extent that a cash refund or reduction in the future payments is available.

1.19 Share based payments

The group operates a number of equity and cash-settled share-based compensation plans under which the entity receivesservices from employees as consideration for equity instruments (options and share appreciation rights ("SARs") of thegroup). The fair value of the employee services received in exchange for the grant of the options is recognised as anexpense. The total amount to be expensed is determined by reference to the fair value of the options granted:

including any market performance conditions (for example, an entity's share price); excluding the impact of any service and non-market performance vesting conditions (for example profitability,

sales growth targets and remaining an employee of the entity over a specified time period); and including the impact of any non-vesting conditions (for example, the requirement for employees to save).

Non-market performance and service conditions are included in assumptions about the number of options that are expectedto vest. The total expense is recognised over the vesting period, which is the period over which all of the specified vestingconditions are to be satisfied.

31



1.19 Share based payments (continued)

In addition, in some circumstances employees may provide services in advance of the grant date and therefore the grantdate fair value is estimated for the purposes of recognising the expense during the period between service commencementperiod and the grant date.

At the end of each reporting period, the group revises the estimates of the number of options that are expected to vestbased on the non-market vesting conditions. It recognises the impact of the revision to original estimates, if any, in theincome statement, with a corresponding adjustment to equity.

When the options are exercised, the company issues new shares. The proceeds received net of any directly attributabletransaction costs are credited to share capital (nominal value) and share premium.

The grant by the company of options over its equity instruments to the employees of subsidiary undertakings in the group istreated as a capital contribution. The fair value of employee services received, measured by reference to the grant date fairvalue, is recognised over the vesting period as an increase to investment in subsidiary undertakings, with a correspondingcredit to equity in the parent entity accounts.

If the terms of an equity-settled award are modified, at a minimum an expense is recognised as if the terms had not beenmodified. An additional expense is recognised for any modification that increases the total fair value of the share-basedpayment arrangement, or is otherwise beneficial to the employee, as measured at the date of modification.

If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yetrecognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award, anddesignated as a replacement award on the date that it is granted, the cancelled and new award are treated as if they were amodification of the original award, as described in the previous paragraph.

If an equity award is cancelled by forfeiture, when the vesting conditions (other than market conditions) have not been met,any expense not yet recognised for that award, as at the date of forfeiture, is treated as if it had never been recognised. Atthe same time, any expense previously recognised on such cancelled equity awards are reversed from the accountseffective as at the date of forfeiture.

The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation of earnings pershare.

For cash-settled share-based payment transactions, the goods or services acquired and the liability incurred are measuredat the fair value of the liability. Until the liability is settled, the fair value of the liability is re-measured at each reporting dateand at the date of settlement, with any changes in fair value recognised in profit or loss for the period.

If the share based payments vest immediately the services received are recognised in full.

A share option scheme is considered equity-settled when the option/gain is settled by the issue of a Naspers N share andthe obligation to settle these lies with Naspers Limited. They are considered cash-settled when they are settled in cash orany other asset, including Naspers shares, where the obligation to settle these lies with the group. Each share trustdeed/SAR plan, as appropriate, indicates whether a plan is to be settled by the issue of Naspers shares or not.

The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal) and sharepremium when the options are exercised.

1.20 Advertising expenses

Advertising expenses are expensed in the financial period in which they are incurred.

32



1.21 Borrowing costs

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset arecapitalised as part of the cost of that asset until such time as the asset is ready for its intended use. The amount ofborrowing costs eligible for capitalisation is determined as follows:

Actual borrowing costs on funds specifically borrowed for the purpose of obtaining a qualifying asset less anytemporary investment of those borrowings.

Weighted average of the borrowing costs applicable to the entity on funds generally borrowed for the purpose ofobtaining a qualifying asset. The borrowing costs capitalised do not exceed the total borrowing costs incurred.

The capitalisation of borrowing costs commences when:

expenditures for the asset have occurred; borrowing costs have been incurred; and activities that are necessary to prepare the asset for its intended use or sale are in progress.

Capitalisation is suspended during extended periods in which active development is interrupted.

Capitalisation ceases when substantially all the activities necessary to prepare the qualifying asset for its intended use orsale are complete.

All other borrowing costs are recognised as an expense in the period in which they are incurred.

1.22 Share capital and equity

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options areshown in equity as a deduction, net of tax, from the proceeds.

1.23 Dividend distributions

Dividend distributions to the company's shareholders are recognised as a liability in the group financial statements in theperiod in which the dividends are approved by the company's shareholders.

1.24 Significant judgements and sources of estimation uncertainty

The preparation of the group and company annual financial statements necessitates the use of estimates, assumptions andjudgements by management. These estimates and assumptions affect the reported amounts of assets, liabilities andcontingent assets and liabilities at the statement of financial position date as well as the reported income and expenses for theyear. Although estimates are based on management’s best knowledge and judgement of current facts as at the statement offinancial position date, the actual outcome may differ from these estimates.

Estimates are made regarding the fair value of intangible assets recognised in business combinations; impairment of property,plant and equipment (refer to note 4); goodwill (refer to note 5); other intangible assets (refer to note 6); financial assets carriedat amortised cost and other assets (refer to note 16); the remeasurements required in business combinations and disposals ofassociates, joint ventures and subsidiaries (refer to note 46, 47); fair-value measurements of level 2 and level 3 financialinstruments (refer to note 12); provisions (refer to note 25); taxation (refer to note 40) and share based payment liability (referto note 29).

Significant judgements include:

Assets carried at amortised cost

The group assesses at each reporting date whether there is objective evidence that a financial asset or group of financialassets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if thereis objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset ("aloss event") and the loss event has an impact on the estimated future cash flows of the financial asset or group of financialassets that can be reliably estimated.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to anevent occurring after the impairment was recognised (such as an improvement in the debtor's credit rating), the reversal of thepreviously recognised impairment loss is recognised in the consolidated statement of profit or loss.

33



1.24 Significant judgements and sources of estimation uncertainty (continued)

The group reviews its doubtful accounts on a monthly basis for estimated losses resulting from the inability of its customers tomake the required payments. The group's customer base is dispersed across many geographic areas and is primarilyresidential in nature. The group generally does not require collateral from its customers.

The group analyses, amongst other things, historic bad debt experience, customer credit worthiness, current economic trendsin each country where its customers are located and customer payment history when evaluating the adequacy of the allowancefor doubtful accounts. If the financial condition of the group's customers was to deteriorate, resulting in impairment in theirability to make payments, additional charges may be required. The estimate may also change if the group experiencessignificant service failures or the number of disputes with customers increases significantly.

The group believes that the accounting estimate relating to doubtful accounts is a critical accounting estimate becausechanges in the estimated level of doubtful debts may materially affect net profit. The estimate for doubtful accounts is a criticalaccounting estimate for all of the group's businesses.

An increase of 10% on debts considered doubtful by management at year end would result in an increase in the provision fordoubtful debts amounting to R22 million (2017: R65 million).

Allowance for slow moving, damaged and obsolete stock

The group values its inventories, which consist mainly of decoders and associated components, at the lower of cost andexpected net realisable value, based on assumptions about future demand, market conditions and the useful life of thedecoders used by the group. The group monitors inventory levels periodically based on the expected usage of such inventory.If actual market conditions prove to be less favourable than those projected by management, additional inventory write downsmay be required. A provision for obsolete inventory of R279 million (2017: R389 million) was raised during the financial year.The group believes that its estimate relating to inventory write downs is a critical accounting estimate due to the assumptionsand estimates that management is required to make in the determination of the expected net realisable value of inventories.

A decrease of 10% in estimated selling prices would result in an increase in the provision for inventory obsolescenceamounting to R28 million (2017: R39 million).

Fair value of derivatives and other financial instruments

The fair value of derivatives that are not traded in an active market is determined by valuation techniques. The group uses itsjudgement to select a variety of methods and make assumptions that are mainly based on market conditions existing at eachreporting date. The group has used discounted cash flow analysis for various available-for-sale financial assets that are nottraded in active markets.

The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values.The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at thecurrent market interest rate that is available to the group for similar financial instruments.

The group considers the estimates and judgements used in determining the fair value derivatives and other financialinstruments as significant (refer to note 10 and 12).

Consideration of useful lives

The group calculates depreciation of property, plant and equipment on a straight-line basis so as to write off the cost of theassets over their expected useful lives. The economic life of an asset is determined based on existing wear and tear, economicand technical ageing, legal or other limits on the use of the asset, and obsolescence. If some of these factors were todeteriorate materially, impairing the ability of the asset to generate future cash flow, the group may accelerate depreciationcharges to reflect the remaining useful life of the asset or record an impairment loss.

Leased transponders and transmitters represent approximately 72% (2017: 72%) of the groups' property, plant and equipmentas of 31 March 2018. All of the groups' leased transponders are capitalised and depreciated over the shorter of their expecteduseful life or the lease term because the term of the lease covers at least 75% of the transponder's estimated useful life.

The useful life of transponders depends on various factors. These factors include the success of the launch and the amount offuel required for the transponder to be placed in the correct orbital location. Many factors can influence the useful life of atransponder. However, they are designed for operational redundancies to minimise service disruptions should critical systemsfail.

34



1.24 Significant judgements and sources of estimation uncertainty (continued)

Other significant assets of the group are computer equipment and broadcast infrastructure equipment. These types of assets'useful lives also depend on a number of factors. These factors include technological advancements and environmentalplacement. Many factors can influence the useful life of these assets. However, they are designed for operational redundanciesto minimise service disruptions should critical systems fail.

The group considers this to be a critical accounting estimate because any material change in the useful lives of the group'sproperty, plant and equipment would significantly impact the group's ability to generate future cash flows, and, depending onthe asset, would have a material impact on the value of the property, plant and equipment stated on the group's statement offinancial position and may decrease the group's net profit. Refer to note 4 for consideration of changes in estimates.

Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate thatthe amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amountexceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value-in-use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separatelyidentifiable cash flows (cash-generating units). Non-financial assets other than goodwill that suffered an impairment arereviewed for possible reversal of the impairment at each reporting date.

An increase in useful lives of non-leased operating assets of 1 year would result in a decrease in depreciation amounting toR159 million (2017: R108 million).

Taxation

The group records the estimated future tax effect of temporary differences between the tax bases of its assets and liabilitiesand the amounts reported in the statement of financial position for such assets and liabilities, as well as the future tax effect ofoperating losses and tax credit carry forwards. The group follows specific and detailed guidelines regarding the recoverability ofany tax assets recorded in the statement of financial position. The group assesses the probability that there will be adequatefuture taxable income generated to utilise the benefits relating to the deferred tax assets. If circumstances change, or if theexpected level of future taxable income is not generated, the group would reassess the recoverability of the deferred tax assetsrecorded in its statement of financial position, which could lead to a write-down of such assets.

The group considers this to be a critical accounting estimate because if in the future the value of the deferred tax asset isdetermined to be less than or exceeds the recorded amount, there could be a material adjustment to the deferred tax assetstated on the group's statement of financial position as well as a material impact on the group's net profit.

Estimated impairment of goodwill

Goodwill is tested annually to assess whether the group has suffered impairment, in accordance with the policy set out in notes1.6 and 1.9. The recoverable amounts of the cash generating units have been determined based on value-in-use calculations.These calculations require the use of estimates.

The group believes that the accounting estimate relating to goodwill impairment is a critical accounting estimate because thediscounted cash flows are highly susceptible to change from period to period because it requires the group's management tomake assumptions about future sales volumes and the cost of providing services over the life of the goodwill and discount ratesfor media-based businesses in emerging markets, and because recognising an impairment could have a material impact on thevalue of the goodwill reported on the group's statement of financial position and the level of its net profit.

The discount rates applied to the cash flows, the growth rate to extrapolate the cash flows and the basis for determining therecoverable amount are disclosed per cash-generating unit in note 5 to the group annual financial statements.

Amortisation of acquired film rights

Costing of acquired film rights is based on a fixed amortisation period, which represents the period over which film rights areacquired. The costing method is consistent with that of the prior year and changes to these assumptions is expected to have asignificant impact on the carrying value of programme and film rights.

35


Notes to the Group Annual Financial Statements

2. New Standards and Interpretations

The IASB issued a number of standards, amendments to standards and interpretations during the year ended 31 March2018.

The following amended accounting standards have been adopted by the group and are applicable for the first time duringthe year ended 31 March 2018. These pronouncements had no significant effect on the group's financial statements:

Standard/Interpretation Title

IAS 7 Statement of Cash Flows

IAS 12 Income Taxes

Various Annual Improvements to IFRS 2014 – 2016 Cycle 2016

The following new standards, interpretations and amendments to existing standards are not yet effective as at 31 March2018.

The group has done an initial assessment for IFRS 9 and IFRS 15, and have tentatively concluded that the implementationof these changes will not have a material impact on the financial statements.

The group will continue to evaluate the effects of these standards and interpretation, which have not been early adopted:

Standard/Interpretation Title Effective foryear ending

IFRS 9 Financial Instruments March 2019

IFRS 15 Revenue from Contracts with Customers March 2019

IFRS 16 Leases March 2020

IFRIC 22 Foreign Currency Transactions and Advance Considerations March 2019

IFRS 10/IAS 28 Sale or Contribution of Assets between an Investor and itsAssociate or Joint Venture

To bedetermined bythe IASB

IFRS 2 Share-based payments March 2019

IFRS 4 Insurance contracts March 2019

IAS 40 Investment property March 2019

IFRS 17 Insurance contracts March 2022

36



3. Significant acquisitions and divestitures

In June 2017, the assets and liabilities of Huntley Media Services Proprietary Limited (formerly MWEB Connect ProprietaryLimited) were sold. An aggregate profit on disposal of R117.7 million has been recognised in the group statement of profitor loss and comprehensive income following the transaction (refer to note 47).

In October and November 2016, the group disposed of its Space Station interest (joint operation) and Smart Villageinvestment respectively. An aggregate profit on disposal of R87.4 million has been recognised in the group statement ofcomprehensive income following the transactions (refer to note 47).

4. Property, plant and equipment

2018 2017R '000 R '000

Cost orrevaluation

Accumulateddepreciation

Carrying value Cost orrevaluation

Accumulateddepreciation

Carrying value

Land and buildings -Purchased

1 800 862 (353 910) 1 446 952 1 782 881 (290 638) 1 492 243

Land and buildings - Leased 10 717 (4 293) 6 424 10 682 (1 313) 9 369Transmission equipment -Purchased

3 845 743 (2 877 356) 968 387 3 641 534 (2 475 297) 1 166 237

Transmission equipment -Leased

10 035 081 (1 931 581) 8 103 500 10 035 081 (1 263 767) 8 771 314

Computer and officeequipment, furniture andvehicles - Purchased

1 508 580 (1 063 190) 445 390 1 359 064 (905 405) 453 659

Work-in-progress 228 494 - 228 494 276 274 - 276 274

Total 17 429 477 (6 230 330) 11 199 147 17 105 516 (4 936 420) 12 169 096

37



4. Property, plant and equipment (continued)

Reconciliation of property, plant and equipment - 2018 (R '000)

Openingbalance

Additions Disposals Transfers Reallocations Depreciation Total

Land and buildings - Purchased 1 492 243 3 269 (800) 17 050 - (64 810) 1 446 952Land and buildings - Leased 9 369 - - 35 - (2 980) 6 424Transmission equipment - Purchased 1 166 237 189 760 (4) 37 027 - (424 633) 968 387Transmission equipment - Leased 8 771 314 - - - - (667 814) 8 103 500Computer and office equipment, furniture and vehicles - Purchased 453 659 140 776 (3 106) 41 963 - (187 902) 445 390Work-in-progress 276 274 97 300 (6 344) (96 075) (42 661) - 228 494

12 169 096 431 105 (10 254) - (42 661) (1 348 139) 11 199 147

Reconciliation of property, plant and equipment - 2017 (R '000)

Openingbalance

Additions Disposals Transferred tonon-currentassets held

for sale

Disposal /acquisition of

business

Transfersfrom work-in-

progress

Reallocations Depreciation Total

Land and buildings - Purchased 1 618 559 6 710 (24 105) (104 099) - 72 946 (9 433) (68 335) 1 492 243Land and buildings - Leased 4 743 5 264 - 2 - 650 - (1 290) 9 369Transmission equipment - Purchased 1 320 695 484 762 (180 640) (19 952) 10 473 27 596 (65 431) (411 266) 1 166 237Transmission equipment - Leased 2 786 001 6 449 340 - - - - - (464 027) 8 771 314Computer and office equipment, furniture andvehicles - Purchased

483 263 136 470 (21 453) (30 575) (155) 15 018 70 222 (199 130) 453 659

Work-in-progress 355 562 102 032 (81 524) 3 772 - (116 210) 12 642 - 276 274

6 568 823 7 184 578 (307 722) (150 852) 10 318 - 8 000 (1 144 048) 12 169 096

38



4. Property, plant and equipment (continued)

The group has pledged property, plant and equipment with a carrying value of R8 106 million at 31 March 2018 (R8 775 millionat 31 March 2017) as security against certain term loans (refer to note 32 for details). The pledge mainly relates to assetsacquired in terms of finance leases. The pledge would come into effect should default on the lease payments occur.

In terms of lAS 8 'Accounting policies, changes in accounting estimates and errors' an assessment of the expected futurebenefits associated with property, plant and equipment was determined. There have been no changes in the estimated usefullives of assets in the year ended 31 March 2018 or 31 March 2017.

2018 2017R '000 R '000

Classification of depreciation in Statement of Profit or Loss and OtherComprehensive Income

Cost of providing services and sale of goods 1 091 864 874 992Selling, general and administration costs 256 275 269 056

1 348 139 1 144 048

Registers containing additional information on land and buildings are available for inspection at the registered offices of therespective group companies. The directors are of the opinion that the recoverable amount of each class of propertyexceeds the carrying amount, at which it is included in the statement of financial position.

5. Goodwill

2018R '000

2017R '000

Cost Accumulatedimpairment

Carrying value Cost Accumulatedimpairment

Carrying value

Goodwill 3 290 812 (22 387) 3 268 425 3 290 812 (22 387) 3 268 425

The group has allocated its goodwill and other intangible assets to its various cash-generating units. The recoverableamounts have been determined based on a value-in-use calculation. The value-in-use is based on pre-tax discounted cashflow calculations. The group based its cash flow calculations on three to five years budgeted and forecast informationapproved by senior management and the various boards of directors of group companies. Long-term average growth ratesfor the country in which the entities operate were used to extrapolate the cash flows into the future. The key assumptionsused for the value-in-use calculations are as follows:

39



5. Goodwill (continued)

2018 Basis ofdetermination

Discountrate (a)

Growthrate into

perpetuity (b)

CarryingamountR'000

M-Net and SuperSport businesses Value-in-use %13 %3 3 268 425

2017 Basis ofdetermination

Discountrate (a)

Growthrate into

perpetuity (b)

CarryingamountR'000

M-Net and SuperSport businesses Value-in-use %15 %3 3 268 425

a. Pre-tax discount rate applied to the cash flow projections.b. Weighted average growth rate used to extrapolate cash flows beyond the budget period.

The discount rates used are pre-tax and reflect specific risks relating to the relevant cash generating units. The weightedaverage growth rates used are consistent with forecasts included in industry reports.

The group has performed a sensitivity analysis by varying the input factors by a reasonably possible margin and assessingwhether the change in input factors result in any impairment of goodwill. No impairment was necessary based on theoutcome of this analysis.

Goodwill represents the assembled workforce and synergies obtained from the acquisitions.

Reconciliation of goodwill - 2018

Openingbalance

Total

R '000 R '000Goodwill 3 268 425 3 268 425

Reconciliation of goodwill - 2017

Openingbalance

Transferred toheld for sale *

Total

R '000 R '000 R '000Goodwill 3 407 005 (138 580) 3 268 424

* Refer to Note 31 for further information

40



6. Intangible assets

2018R '000

2017R '000

Cost Accumulatedamortisation

Carrying value Cost Accumulatedamortisation

Carrying value

Brand names 220 800 (220 800) - 220 800 (220 800) -Subscriber base - - - 224 013 (224 013) -Software 1 215 687 (707 759) 507 928 1 027 548 (526 701) 500 847Other 1 226 399 (1 190 543) 35 856 1 220 323 (1 173 072) 47 251Work-in-progress 38 831 - 38 831 13 687 - 13 687

Total 2 701 717 (2 119 102) 582 615 2 706 371 (2 144 586) 561 785

Reconciliation of other intangible assets - 2018 (R '000)Openingbalance

Additions Disposal /acquisition

of business

Transferredfrom WIP

Reallocations Amortisation Total

Brand names - - - - - - -Software 500 847 99 935 (13) 57 557 42 661 (193 059) 507 928Other 47 251 39 332 (12 573) - - (38 154) 35 856Work-in-progress 13 687 82 701 - (57 557) - - 38 831

Total 561 785 221 968 (12 586) - 42 661 (231 213) 582 615

*The group recognised impairment losses on other intangible assets of Rnil million (2017: R10 million) relating to software no longer in use. The impairment losses have been includedin “Selling, general and administration costs” in the statement of profit or loss and other comprehensive income.

41



6. Intangible assets (continued)

Reconciliation of other intangible assets - 2017 (R '000)Openingbalance

Additions Disposal /acquisition

of business

Disposals Classified asheld for sale

Transferredfrom WIP

Reallocations Amortisation Impairmentloss

Total

Brand names - - - - - - - - - -Subscriber base - - - - - - - - - -Software 495 210 172 625 (688) (5 223) (1 381) 39 238 (33 275) (155 603) (10 056) 500 847Other 19 764 98 212 - (35 682) - - 538 (35 581) - 47 251Work-in-progress 13 497 32 196 (17 505) - - (39 238) 24 737 - - 13 687

Total 528 471 303 033 (18 193) (40 905) (1 381) - (8 000) (191 184) (10 056) 561 785

Classification of amortisation in Statement of Comprehensive Income 2018R '000

2017R '000

Cost of providing services and sale of goods 10 826 17 475Selling, general and administration costs 220 387 173 709

231 213 191 184

None of the intangible assets have an indefinite useful life.

42



7. Investments in subsidiaries

Name of company %holding

2018

%holding

2017

Nature of business Incorporationand principalplace ofbusiness

Functionalcurrency

Financial yearend date

CommerceZone ProprietaryLimited

%100 %100 e-Procurement platform South Africa ZAR 31 March 2018

DStv Media SalesProprietary Limited

%100 %100 Commercial air-time salesSouth Africa ZAR 31 March 2018

Electronic Media NetworkProprietary Limited

%100 %100 Pay TV content provider South Africa ZAR 31 March 2018

Huntley HoldingsProprietary Limited

%100 %100 Investment holding South Africa ZAR 31 March 2018

Jellybean InteractiveProprietary Limited

%60 %60 Online Electronics retailer(Dormant)

South Africa ZAR 31 March 2018

M-Net Intelprop HoldingsProprietary Limited

%100 %100 Dormant Mauritius MUR 31 March 2018

MultiChoice ProprietaryLimited

%100 %100 Pay TV content provider South Africa ZAR 31 March 2018

MultiChoice InvestmentsProprietary Limited


MultiChoice MobileOperations ProprietaryLimited

%100 %100 Mobile platformmanagement services


MultiChoice OperationsProprietary Limited

%100 %100 Subscriber managementservices


MultiChoice Eastern CapeProprietary Limited

%100 %100 Analogue subscriptiontelevision services


MultiChoice South AfricaProprietary Limited


MultiChoice SupportServices Proprietary Limited

%100 %100 Subscriber managementservices, Subscriptiontelevision technicalsupport and Propertyholding company


MultiChoice TechnicalOperations ProprietaryLimited

%100 %100 Subscription televisiontechnical support


Huntley Media ServicesProprietary Limited

%100 %100 Internet service provider South Africa ZAR 31 March 2018

NMS Properties ProprietaryLimited

%100 %100 Property holding company South Africa ZAR 31 March 2018

Orbicom Proprietary Limited %100 %100 Subscription televisioninfrastructure


SSI Intelprop HoldingsLimited


SuperSport InternationalProprietary Limited

%100 %100 Sports broadcasting South Africa ZAR 31 March 2018

SuperSport InternationalHoldings Proprietary Limited

%100 %100 Sports broadcasting South Africa ZAR 31 March 2018

SuperSport Sports HoldingsProprietary Limited

%100 %100 Sports Holdings South Africa ZAR 31 March 2018

SuperSport United FootballClub Proprietary Limited

%100 %100 Football Club South Africa ZAR 31 March 2018

A register containing the number of shares and class of shares for all investments in subsidiaries is available for inspectionat the company's registered office.

43



8. Investments in joint ventures

Joint ventures

The following information relates to MultiChoice South Africa Holdings Proprietary Limited's financial interest in itssignificant joint ventures in which the group has voting rights through its direct and indirect interests in intermediate holdingcompanies and other entities. All of these entities are unlisted. They are all incorporated and have their principal place ofbusiness in South Africa and all have the South African Rand as their functional currency, unless otherwise indicated:

Name of company %ownership

interest

%ownership

interest Carrying value

2018 2017 2018R '000

2017R '000

Kwazulu Natal Cricket Proprietary Limited %50.00 %50.00 (1 801) (1 663)NMS Communications Proprietary Limited %50.00 %50.00 - -Western Province Professional Cricket Proprietary Limited %50.00 %50.00 (991) (588)Titans Cricket Proprietary Limited %50.00 %50.00 16 121 17 064Vast Networks Proprietary Limited %49.00 %49.00 1 903 92 638EMN Media Services Proprietary Limited %33.00 %33.00 - -

15 232 107 451

A register containing the number of shares and class of shares for all investments in joint ventures is available forinspection at the company's registered office.

Summarised financial information of material joint ventures

Revenue 221 526 229 922Other income and expenses (409 155) (352 219)Loss from continuing operations

(187 629) (122 297)

Total comprehensive losses (187 629) (122 297)

Summarised Statement of Financial Position2018R'000

2017R'000

AssetsNon-current 150 801 195 226Current 180 789 144 225Total assets

331 590 339 451

LiabilitiesNon-current liabilities 195 760 42 793Current liabilities 118 137 91 336Total liabilities

313 897 134 129

Total shareholder's equity 17 693 205 322

Total equity and liabilities 331 590 339 451

44



8. Investments in joint ventures (continued)

2018 2017R '000 R '000

Reconciliation of investment of joint venturesInvestment at beginning of period 107 451 167 315Acquisitions 143 142Share of equity accounted results (91 962) (59 471)Impairment (400) (103)Transfer to 'held for sale' - (432)

Investment at end of period 15 232 107 451

The summarised information presented above reflects the financial statements of the joint ventures after adjusting fordifferences in accounting policies between the group and the joint venture.

The group has applied IFRS 11 by accounting for joint ventures in terms of the equity method.

9. Investments in associates

Material associates

The following information relates to MultiChoice South Africa Holdings Proprietary Limited's financial interest in itssignificant associates in which the group has voting rights through its direct and indirect interests in intermediate holdingcompanies and other entities. All of these entities are unlisted. They are all incorporated and have their principal place ofbusiness in South Africa and all have the South African Rand as their functional currency, unless otherwise indicated:

2018Shareholding

%

2017Shareholding

%

2018R '000

2017R '000

Central Cheetahs Proprietary Limited * 8.16% 8.16% - -Free State Cheetahs Proprietary Limited 24.50% 24.50% (480) (1 131)The Sharks Proprietary Limited 49.00% 49.00% (37 526) (32 270)

(38 006) (33 401)

* The effective investment in Central Cheetahs Proprietary Limited is below 20%. Significant influence is establishedthrough board representation.

The group continues to recognise losses in these investments as the group have taken out guarantees against theobligations related to these losses.

A register containing the number of shares and class of shares for all investments in associates is available for inspectionat the group's registered office.

45



9. Investments in associates (continued)

Summarised financial information of material associates

Summarised Statement of Comprehensive Income

2018R '000

2017R '000

Revenue 288 198 284 495Other income and expenses (297 078) (298 652)

Loss from continuing operations (8 880) (14 157)

Net loss (8 880) (14 157)

Summarised Statement of Financial PositionAssetsNon-current 97 833 99 096Current 51 402 54 419Total assets

149 235 153 515

LiabilitiesNon-current 61 045 85 113Current 103 305 74 842Total liabilities

164 350 159 955

Total shareholders' equity (15 115) (6 440)

Total equity and liabilities 149 235 153 515

Reconciliation of net assets to equity accounted investments in associates

Investment at beginning of period (33 400) (25 620)Acquisitions - 9 800Share of loss (4 805) (7 372)Impairment reversal/(loss) 199 (10 208)

Investment at end of period (38 006) (33 400)

10. Financial instruments

Financial risk factors

The group's activities expose it to a variety of financial risks, including the effects of changes in debt and equity markets,foreign currency exchange rates and interest rates. The group's overall risk management programme focuses on theunpredictability of financial markets and seeks to minimise the potential adverse effects on the financial performance of thegroup. The group uses derivative financial instruments such as forward exchange contracts to hedge certain risk exposures.The group does not speculate with, or engage in the trading of financial instruments.

Risk management is carried out by the management of the group under policies approved by the board of directors.Management identifies, evaluates and hedges financial risks. The various boards of directors within the group providewritten policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, the use of derivativeinstruments and the investment of excess liquidity.

The group did not designate any cash as hedge instruments in the current and prior year.

46



10. Financial instruments (continued)

Capital management

The group's objectives when managing capital are to safeguard the entity's ability to continue as a going concern, so that itcan continue to provide adequate returns for shareholders and benefits for other stakeholders by pricing products andservices commensurately with the level of risk. The group sets the amount of capital in proportion to risk. The groupmanages capital structure and makes adjustments to it in the light of changes in economic conditions and the riskcharacteristics of the underlying assets. In order to maintain or adjust the capital structure, the group may adjust theamount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

As of 31 March 2018, the group had total interest bearing debt (including capitalised finance leases) of R8 569 million (2017: R10 015 million) and total cash of R2.3 billion (2017: R2.6 billion). The net interest-bearing debt to equity ratio was97% (2017: 124%) at 31 March 2018. The group excludes satellite transponders from total interest-bearing debt whenevaluating and managing capital. These items are considered to be operating expenses. The adjusted total interest-bearingdebt (excluding transponder leases) was Rnil million (2017: Rnil) and the adjusted net interest-bearing debt ratio was 0%(2017: 0%).

The group does not have a formal targeted debt-equity ratio.

General authority has been granted to the directors of the group to allot and issue the un-issued shares of the companysubject to the requirements of the Companies Act.

There were no changes in the group's approach to capital management during the year.

Equity price risk

The group holds investments in equity instruments that are classified as available-for-sale financial assets. Theseinvestments expose the group to equity price risk as changes in the fair value of the investments are recognised in othercomprehensive income.

Equity price risk sensitivity analysis

Management's best estimate of the reasonably possible changes in the market values of available-for-sale financial assets,assuming all other variables were held constant, specifically foreign exchange rates, would result in an increase in totalequity of R10.6 million (2017: R15.2 million).

Foreign exchange risk

The group is exposed to foreign exchange risk arising from various currency exposures. Although a substantial portion ofthe group's revenue is denominated in the currencies of the countries in which it operates, a significant portion of cashobligations, including payment obligations under satellite transponder leases and contracts for pay-television programmingand channels, are denominated in US dollars. Where the group's revenue is denominated in local currency such as Rand,depreciation of the local currency against the US dollar adversely affects the group's earnings and its ability to meet cashobligations. Entities in the group use forward exchange contracts to hedge their exposure to foreign currency risk inconnection with their functional currencies. Management is responsible for hedging the net position in the major foreigncurrencies by using forward currency contracts. The group generally covers forward 80% to 100% of firm commitments inforeign currency for up to two years.

The group has classified its forward exchange contracts relating to forecast transactions and firm commitments as cashflow and fair value hedges, and states them at fair value. The transactions relate mainly to programming costs, transponderlease instalments and the acquisition of inventory items. A cumulative after tax loss of R438.4 million (2017: loss of R 533.6 million) has been deferred in a hedging reserve at 31 March 2018. This amount is expected to realise over the nextfinancial year. The fair value of all forward exchange contracts designated as cash flow hedges at 31 March 2018 was a netasset of R1.185 billion (2017: R445.4 million net liability). The fair value of all forward exchange contracts designated as fairvalue hedges at 31 March 2018 was a net asset of R286.2 millon (2017: R324.1 million net liability).

47




The following is an analysis of the fair value of the forward exchange contracts and embedded derivatives in place at year-end:

2018R '000

2017R '000

AssetsNon current - 27 075Current 20 159 78 026

20 159 105 101

LiabilitiesNon current (404 097) (71 100)Current (1 067 630) (727 334)

(1 471 727) (798 434)

Derivative assets 20 159 105 101Derivative liabilities (1 471 727) (798 434)

Total net derivative liability (1 451 568) (693 333)

MovementAt the beginning of the year (693 333) 551 437Fair value hedges (150 218) (574 865)Released to hedged item 57 288 104 377Revaluation (665 303) (774 282)

At the end of the year (1 451 566) (693 333)

The group's forward exchange contracts and interest rate swaps are subject to master netting arrangements that allow foroffsetting of asset and liability positions with the same counterparty in the event of default. None of the group's forwardexchange contracts and interest rate swap agreements have been offset in the statement of financial position. Had forwardexchange contracts been offset, the net liability presented in the statement of financial position would amount to R1.452billion (2017: net liability of R693 million).

As at 31 March 2018 and 31 March 2017, the group had no hedges of net investments in foreign operations.

The table below sets out the periods when the cash flows are expected to occur for both fair value and cash flow hedges inplace as at year-end:

2018 2017

Foreigncurrencyamount

'000

Averagerate

R

R'000 Foreigncurrencyamount

'000

Averagerate

R

R'000

US DollarWithin 1 year 499 096 14.26 7 114 862 362 887 15.47 5 613 8621 to 2 years 205 000 14.36 2 943 683 137 996 14.64 2 020 261EuroWithin 1 year 34 000 17.25 586 396 33 000 18.70 617 1001 to 2 years 35 000 17.63 616 963 34 000 17.25 586 500

48




The group's forward exchange contracts are used primarily to hedge the Rand against the US dollar. During the financialyear ended 31 March 2018, the value of the US dollar decreased against the Rand by approximately 12% (2017: decreasedby 9%). Below is an analysis of the covered and uncovered foreign currency commitments of the group. The exposureamount primarily reflects US dollar denominated debt relating to finance lease commitments and programme and filmrights. The group's exposure to exchange rate fluctuations in currencies other than the US dollar and Euro is not material.

2018 2017

Foreigncurrencyamount

'000

R'000 Foreigncurrencyamount

'000

R'000

Covered commitmentsUS Dollar 704 096 10 058 545 500 883 7 635 621Euro 69 000 1 203 359 67 000 1 203 496Uncovered commitmentsUS Dollar 1 312 210 15 568 839 894 724 12 011 404Euro 23 350 340 628 57 044 815 736British pound - - 2 814 47 432Australian Dollar 2 207 20 059 - -

Foreign exchange rates

The exchange rates used by the group are as follows:

2018 2017

Averagerate

R

Closingrate

R

Averagerate

R

Closingrate

R

US Dollar 12,91 11,84 14,03 13.42Euro 15,22 14,59 15,37 14.30British pound 17,28 16,59 18,32 16.85

The average rates listed above are only approximate average rates for the year. The group measures separately thetransactions of each of its material operations using the particular currency of the primary economic environment in whichthe operation conducts its business, translated at the prevailing exchange rate on the transaction date.

Foreign currency sensitivity analysis

The group's presentation currency is the South African Rand, but as it procures goods and services internationally, it isexposed to a number of currencies, of which the exposure to the US dollar, Euro and British pound are the most significant.

The sensitivity results below detail the group's sensitivity to a 10% decrease in the Rand against the US dollar, Euro andBritish pound. These percentage decreases represent management's assessment of the possible changes in the foreignexchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items andadjusts their translation at the period end for the above percentage change in foreign currency rates.

A 10% decrease of the Rand against the US dollar, Euro and British pound would result in the profit after tax decreasing byapproximately R360.9 million (2017: R615.2 million). Changes in other equity would increase by approximately R267 million(2017: increase by approximately R82.3 million).

49




10.1 Credit risk

Receivables consist primarily of invoiced amounts from normal trading activities. The group has a relatively homogenouscustomer base, which is primarily residential in nature and is dispersed across many geographical areas. Strict creditcontrol is exercised through monitoring customers' payment history and when necessary, provision is made for both specificand general doubtful accounts. As at 31 March 2018, the directors were unaware of any significant unprovided anduninsured concentration of credit risk, as there are individual households and corporate entities.

The group monitors the aging of related party receivables and provides for doubtful debts after analysing the possibility ofdefault. Once a debt is considered irrecoverable it is written off as a bad debt. There have been no provisions made againstthe related party balances at 31 March 2018 as there are no indicators of impairment.

The group is exposed to certain concentrations of credit risk relating to its cash and current investments. It places its cashand current investments mainly with major banking groups and high-quality institutions that have high credit ratings. Thegroup's treasury policy is designed to limit exposure to any one institution and invests its excess cash in low-risk investmentaccounts. The counterparties that are used by the group are evaluated on a continuous basis. At 31 March 2018 cash andcurrent investments were held with numerous financial institutions.

The maximum amount of credit risk that the group is exposed to is as follows:

2018 2017R '000 R '000

Investments and loans 1 183 307 724 332Current receivables 2 928 127 2 095 859Derivative assets 20 159 105 100Cash and cash deposits 2 272 620 2 600 694Guarantees 219 813 189 028Related party receivables 1 172 255 1 628 808

7 796 281 7 343 821

The movement in the allowance account for impairment for trade receivables was as follows:

At the beginning of the year 406 726 348 171Provision utilised (53 183) (52 877)Additional provision raised 50 831 116 315Provision reversed to the statement of profit or loss and other comprehensive income (31 834) -Transferred to held for sale (778) (4 941)Acquisition of subsidiary - 58

371 762 406 726

The ageing of trade receivables as well as the amount of provision per age class is presented below:

2018 2017

GrossR'000

ProvisionR'000

NetR'000

GrossR'000

ProvisionR'000

NetR'000

Neither past due norimpaired

690 202 - 690 202 722 446 - 722 446

30 days and older 294 470 (42 881) 251 589 329 970 (76 427) 253 54360 days and older 29 632 (13 400) 16 232 114 145 (40 538) 73 60790 days and older 22 735 (17 106) 5 629 40 127 (30 155) 9 972120 days and older 322 428 (298 375) 24 053 346 480 (259 606) 86 874

1 359 467 (371 762) 987 705 1 553 168 (406 726) 1 146 442

50




The carrying amounts of the group's trade receivables are denominated in South African Rands. The other classes withintrade and other receivables do not contain impaired assets.

The creation and release of the provision for impaired receivables has been included in the selling, general andadministration costs line in profit or loss. Amounts charged to the allowance account are generally written off when there isno expectation of receiving the cash.

The maximum exposure to credit risk at the reporting date is the carrying amount of each class of receivable. The groupdoes not hold any collateral as security. Trade credit insurance is in place for certain trade receivables.

10.2 Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of fundingthrough an adequate amount of committed credit facilities and the ability to close out market positions. In terms of thearticles of association of the group, no limitation is placed on its borrowing capacity. The facilities expiring beyond one yearare subject to renewal. The group has borrowing facilities with ABSA of R1 billion (2017: Overdraft facility of R300 million),First Rand Bank of R469 million (2017: Rnil) and Nedbank of R514 million (2017: R1.5 billion).

The following table details the group’s remaining contractual maturity for its financial liabilities. The table is based on theundiscounted cash flows of financial liabilities based on the earliest date on which the group can be required to pay. Thetable includes both interest and principal cash flows.

2018 CarryingamountR'000

Contractualcash flows

R'000

0 - 12 months

R'000

1 - 5 years

R'000

5 years +

R'000

Net derivative liabilities 1 471 727 1 540 078 1 091 408 448 669 -Embedded derivatives 20 159 20 159 16 182 3 977 -Finance lease liabilities 8 568 849 10 775 550 604 391 3 724 152 6 447 007Payable for programme and film rights 1 460 228 1 504 420 1 302 201 202 219 -Trade payables 2 092 858 2 281 347 2 281 347 - -Accrued expenses and other currentliabilities 1 662 381 1 662 381 1 662 381 - -

Inter-group creditors 298 728 298 728 298 728 - -Inter-group loans payable 37 478 37 478 37 478 - -Personnel accruals 24 941 28 010 28 010 - -

15 637 349 18 148 151 7 322 126 4 379 017 6 447 007

2017 CarryingamountR'000

Contractualcash flows

R'000

0 - 12 months

R'000

1 - 5 years

R'000

5 years +

R'000

Net derivative liabilities 769 597 782 326 735 268 47 058 -Embedded derivatives (76 263) (76 263) (64 255) (12 008) -Finance lease liabilities 10 014 966 12 904 701 685 372 3 803 143 8 416 186Payable for programme and film rights 1 520 173 1 557 737 1 394 110 163 627 -Trade payables 2 706 856 2 873 415 2 873 415 - -Accrued expenses and other currentliabilities 1 911 243 1 911 243 1 911 243 - -

Inter-group creditors 272 515 272 515 272 515 - -Inter-group loans payable 38 140 38 140 38 140 - -

17 157 227 20 263 814 7 845 808 4 001 820 8 416 186

51




10.3 Interest rate risk

As part of the process of managing the group’s fixed and floating borrowings rate mix, the interest rate characteristics ofnew borrowings and the refinancing of existing borrowings are positioned according to expected movements in interestrates. Where appropriate, the group uses derivative financial instruments, purely for hedging purposes. The fair value ofthese instruments will not change significantly as a result of changes in interest rates due to their short-term nature andfloating interest rates.

Interest rate sensitivity analysis

The sensitivity analysis below has been determined based on the exposure to interest rates for both derivative and non-derivative instruments at the statement of financial position date (after taking into account the effect of hedge accounting).The group is mainly exposed to interest rate fluctuations of the South African, American and European repo rates. Thefollowing changes in the repo rates represent management's best estimate of the possible change in interest rates at therespective year-ends:

South African repo rate: increases by 100 basis points (2017: increases by 100-basis points) American, European and London interbank rates: increases by 100 basis points each (2017: increases by 100-

basis points each)

If interest rates changed as stipulated above and all other variables were held constant, specifically foreign exchange rates,the group's net profit after tax for the year ended 31 March 2018 would increase by R13.3 million (2017: increase by R21.5million). Total equity would be unaffected by the above changes in interest rates (2017: Rnil).

2018 2017R '000 R '000

11. Available for sale investment

Available for sale investments 105 600 152 400

In March 2016 the group acquired 1 200 000 shares in Phuthuma Nathi Investments 2 (RF) Limited at a cost price of R10 per share. At year end these shares were revaluated to market value of R88 per share (2017: R127 per share).

12. Fair value information

For financial assets and liabilities which are traded on an active market, such as listed investments or listed debt instruments,fair value is determined by reference to market value. For non-traded financial assets and liabilities, the fair values werecalculated using market information and other relevant valuations techniques, and do not necessarily represent the values thatthe company will realise in the normal course of business. The carrying amounts of cash and cash deposits, receivables andpayables are deemed to reflect fair value due to the short maturities of these instruments. The fair values of forward exchangecontracts are based on quoted market prices.

52



12. Fair value information (continued)

Net gains/(losses)

Carryingamount

Fair value Recognisedin profit and

loss

Recognisedin equity

Interestincome/

(expense)

Impairmentexpense

R '000 R '000 R '000 R '000 R '000 R '000

2018AssetsAt fair value through profit andlossAvailable-for-sale investments andloans

105 600 105 600 - (46 800) - -

Derivative asset 20 159 20 159 36 828 - - -Receivables and loansTrade receivables 987 705 987 705 (9 906) - 18 190 (53 182)Related party loans 99 122 99 122 - - 5 998 (55)Other receivables 1 940 422 1 940 422 (183 985) - 3 195 (3 113)Related party receivables 9 163 9 163 - - - -Inter-group debtors 1 163 093 1 163 093 (112 547) - - -Inter-group loans receivable 978 585 978 585 - - - -Cash and cash equivalents 2 272 620 2 272 620 (82 058) - - -

7 576 469 7 576 469 (351 668) (46 800) 27 383 (56 350)

Liabilities Derivative liability 1 471 727 1 471 727 (1 106 031) - - -Financial liabilities at amortisedcostFinance lease liabilities andprogramme and film rights payables

10 029 078 9 619 382 1 298 144 - (508 691) -

Trade payables 2 092 858 2 092 858 159 538 - (98 628) -Accruals 1 662 381 1 662 381 - - (690) -Inter-group loans payable 37 478 37 478 (553) - - -Inter-group creditors 298 728 298 728 29 346 - (35 159) -Bank overdraft - - - - (1 749) -

15 592 250 15 182 554 380 444 - (644 917) -

53




Net gains/(losses)

Carryingamount

Fair value Recognisedin profit and

loss

Recognisedin equity

Interestincome/

(expense)

Impairmentexpense

R '000 R '000 R '000 R '000 R '000 R '000

2017AssetsAt fair value through profit andlossAvailable-for-sale investments andloans

152 400 152 400 - 140 400 - -

Derivative asset 105 101 105 101 182 139 - - -Receivables and loansTrade receivables 1 146 447 1 146 447 (12 761) - 17 614 -Related party loans 20 049 20 049 - - 904 (29 820)Other receivables 949 416 949 416 (90 200) - - (44 274)Related party receivables 5 525 5 525 - - - -Inter-group debtors 1 623 283 1 623 283 (582 800) - - -Inter-group loans receivable 551 883 551 883 - - - (113)Cash and cash equivalents 2 600 694 2 600 694 (100 132) - 192 831 -

7 154 798 7 154 798 (603 754) 140 400 211 349 (74 207)

Liabilities Derivative liability 798 434 798 434 (309 986) - - -Financial liabilities at amortisedcostFinance lease liabilities andprogramme and film rights payables

11 535 139 11 242 882 664 232 - (500 713) -

Trade payables 2 706 856 2 706 856 (58 916) - (109 840) -Accruals 1 911 243 1 911 243 - - - -Inter-group loans payable 38 140 38 557 (635) - - -Inter-group creditors 272 515 272 515 176 827 - - -Bank overdraft - - - - (107) -

17 262 327 16 970 487 471 522 - (610 660) -

Of the instruments listed above, the available-for-sale investments of R105.6 million (2017: R152 million) are classified as level1 financial instruments and the derivative assets (excluding embedded derivatives) of Rnil (2017: R28.8 million) and liabilities ofR1 471.7 million (2017: R798.4 million) are classified as level 2 financial instruments. The embedded derivative of R20.2 million(2017: R76million) is classified as a level 3 financial instrument. There were no transfers between level 1 and level 2 financialinstruments during the year.

The group categorises fair value measurements into levels 1 to 3 of the fair value hierarchy based on the degree to which theinputs used in measuring fair value are observable:

Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identicalassets or liabilities.

Level 2 fair value measurements are those derived from inputs other than quoted prices included within level 1 thatare observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). The fairvalue of financial instruments that are not traded in active markets (for example, derivatives such as interest rateswaps, forward exchange contracts and certain options) is determined through valuation techniques. Thesevaluation techniques maximise the use of observable market data where it is available and rely as little as possibleon entity specific estimates. If all significant inputs required to measure the fair value of an instrument areobservable, the instrument is included in level 2.

Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset orliability that are not based on observable market data (unobservable inputs).

54




Valuation techniques and key inputs used to measure significant level 2 and level 3 fair values

Level 2 Fair-value measurements

Forward exchange contracts - in measuring the fair value of forward exchange contracts, the group makes use ofmarket observable quotes of forward foreign exchange rates on instruments that have a maturity similar to thematurity profile of the group's forward exchange contracts. Key inputs used in measuring the fair value of forwardexchange contracts include: current spot exchange rates, market forward exchange rates and the term of the group'sforward exchange contracts.

Interest rate swaps - the fair value of the group's interest rate swaps is determined through the use of discountedcash flow techniques using only market observable information. Key inputs used in measuring the fair value ofinterest rate swaps include: spot market interest rates, contractually fixed interest rates, counterparty credit spreads,notional amounts on which interest rate swaps are based, payment intervals, risk-free interest rates as well as theduration of the relevant interest rate swap arrangement.

Level 3 Fair-value measurements

Shareholders' liabilities relate predominantly to written put options and derivative financial instruments contained inshareholders' agreements to which the group is a party that grant or allow another shareholder in a group entity topurchase or sell interests in those entities to the group. Options are valued using appropriate option pricing modelsas well as discounted cash flow analyses. Significant inputs include: the current fair value of the underlying shareover which the instrument is written, the strike price of the option, risk-free interest rates, calculated volatilities andthe period to exercise.

Earn-out obligations relate to amounts that are payable to the former owners of businesses now controlled by thegroup provided that contractually stipulated post-combination performance criteria are met. These are premeasuredto fair value at the end of each reporting period. Key inputs used in measuring fair value include: current forecasts ofthe extent to which management believe performance criteria will be met, discount rates reflecting the time value ofmoney and contractually specified earn-out payments.

Currency devaluation features relate to clauses in content acquisition agreements that provide the group withprotection in the event of significant devaluations of the purchasing entity's functional currency relative to thecurrency of the content acquisition agreement. The fair value of currency devaluation features is measured throughthe use of discounted cash flow techniques. Key inputs used in measuring fair value include the terms andbenchmark rates contained in content acquisition agreements and spot exchange rates prevailing at the relevantmeasurement dates.

Instruments not measured at fair value for which fair value is disclosed

Level 3 - the fair values of all level 3 disclosures have been determined through the use of discounted cash flowanalyses. Key inputs include current market interest rates as well as contractual cash flows.

Opening to closing balance reconciliation of level 3 fair-value measurements

Assets Currencydevaluation

clauses

Total

R '000 R '000Opening balance 76 263 76 263Total losses in income statement (25 885) (25 885)Other movements (30 219) (30 219)

Closing balance 20 159 20 159

55


Notes to the Group Annual Financial Statements2018 2017

R '000 R '000

13. Deferred tax

Deferred tax liability

Deferred tax asset to be recovered after 12 months (107 277) (256 308)

Deferred tax asset

Deferred tax asset to be recovered after 12 months 332 137 593 581Deferred tax asset to be recovered within 12 months 503 845 542 306

Total deferred tax asset 835 982 1 135 887

Deferred tax liability (107 277) (256 308)Deferred tax asset 835 982 1 135 887

Total net deferred tax asset 728 705 879 579

Reconciliation of net deferred tax asset

At beginning of year 879 579 940 009Recognised in profit or loss (321 078) (224 277)Recognised in other comprehensive income 170 204 163 847

728 705 879 579

The group charged deferred income taxation of R170.2 million (2017: charged R163.8 million) to other comprehensiveincome as a result of changes in fair value of derivative financial instruments where the forecast transaction or commitmenthas not resulted in an asset or liability.

The ultimate outcome of additional taxation assessments may vary from the amounts accrued. However, managementbelieves that any additional taxation liability over and above the amount accrued would not have a material adverse impacton the group's profit or loss and financial position.

Deferred tax assets and liabilities are offset when the income tax relates to the same fiscal authority and there is a legalright to offset upon settlement.

The group assessed the recoverability of the deferred tax asset by analysing future taxable profits in excess of the profitsarising from the reversal of existing taxable temporary differences.

56



13. Deferred tax (continued)

2018

Deferred taxation assets At beginningof yearR'000

Recognisedin income

R'000

Recognisedin compre-

hensiveincomeR'000

At endof yearR'000

Property, plant and equipment 24 501 12 126 - 36 627Intangible assets 1 338 - - 1 338Programme and film rights 48 029 (15 695) - 32 334Receivables and current assets 7 685 (818) - 6 867Provisions and other payables 304 239 93 485 - 397 724Income received in advance 410 959 316 - 411 275Capitalised finance leases 2 988 840 (476 863) - 2 511 977Share based compensation 44 036 (10 628) - 33 408Hedging reserve 57 223 55 243 170 204 282 670Derivatives 58 940 (58 940) - -Other 1 - - 1

3 945 791 (401 774) 170 204 3 714 221

Deferred taxation liabilities At beginningof yearR'000

Recognisedin income

R'000


hensiveincomeR'000

At endof yearR'000

Property, plant and equipment (18 500) 5 589 - (12 911)Intangible assets (25 679) (2 470) - (28 149)Receivables and current assets (238 662) (121 817) - (360 479)Capitalised finance leases (2 455 967) 186 988 - (2 268 979)Provisions and other current liabilities (1 088) (1 724) - (2 812)Programme and film rights (301 153) 1 011 - (300 142)Hedging reserve 1 - - 1Derivatives (24 011) 13 119 - (10 892)Other (1 153) - - (1 153)

(3 066 212) 80 696 - (2 985 516)

Net deferred taxation asset 879 579 (321 078) 170 204 728 705

57



13. Deferred tax (continued)

2017

Deferred taxation assets At beginningof yearR'000

Recognisedin income

R'000


hensiveincomeR'000

At endof yearR'000

Property, plant and equipment 41 794 (17 293) - 24 501Intangible assets 1 250 87 - 1 337Programme and film rights 65 768 (17 739) - 48 029Receivables and current assets 4 202 3 483 - 7 685Provisions and other payables 279 455 24 784 - 304 239Income received in advance 383 582 27 377 - 410 959Tax losses carried forward 16 226 (16 226) - -Capitalised finance leases 1 461 707 1 527 133 - 2 988 840Share based compensation 55 022 (10 986) - 44 036Hedging reserve 32 744 (28 015) 52 494 57 223Derivatives 15 859 - 43 081 58 940Other 9 672 (9 671) - 1

2 367 281 1 482 934 95 575 3 945 790

Deferred taxation liabilities At beginningof yearR'000

Recognisedin income

R'000


hensiveincomeR'000

At endof yearR'000

Property, plant and equipment (29 864) 11 364 - (18 500)Intangible assets (20 952) (4 727) - (25 679)Receivables and current assets (257 145) 18 484 - (238 661)Capitalised finance leases (784 542) (1 671 425) - (2 455 967)Provisions and other current liabilities (2 083) 995 - (1 088)Programme and film rights (244 050) (57 103) - (301 153)Hedging reserve 20 327 (39 374) 19 048 1Derivatives (106 082) 32 847 49 224 (24 011)Other (2 881) 1 728 - (1 153)

(1 427 272) (1 707 211) 68 272 (3 066 211)

Net deferred taxation asset 940 009 (224 277) 163 847 879 579

58



R '000 R '000

14. Inventories

Set-top boxes and associated components 331 914 468 171Consumables 1 751 3 179

333 665 471 350Provision for obsolete inventory (278 959) (389 375)Transfer to held for sale - (90)

54 706 81 885

Inventory carried at net realisable value at 31 March 2018 amounted to R53 million (2017: R79 million).

The cost of inventories recognised as an expense in cost of providing services and sale of goods amounted to R 2.6 billion(2017: R3.5 billion).

15. Programme and film rights

CostProgramme rights 7 888 575 8 236 313Film rights 990 927 1 028 435

8 879 502 9 264 748

Accumulated amortisationProgramme rights (5 605 476) (6 152 616)Film rights (705 963) (695 548)

(6 311 439) (6 848 164)

Carrying amountProgramme rights 2 283 099 228 099Film rights 284 964 332 887

2 568 063 560 986

All of these programme and film rights are classified as current on the statement of financial position at R2 568 million(2017: R2 412.8 million), except ShowMax that also has a non-current portion at Rnil (2017: R3.8 million). The amortisationof programme and film rights recorded in "cost of providing services and sale of goods" in the income statement amountedto R14.1 billion (2017: R14.6 billion).

16. Trade receivables

Trade receivables - gross 1 359 467 1 553 173Provision for impairment of trade receivables (371 762) (401 785)Transfer to held for sale - (4 941)

987 705 1 146 447

Refer to note 10 for details on credit risk.

59



R '000 R '000

17. Other receivables

Accrued income 32 083 2 641Sundry deposits 1 248 1 001VAT and related taxes receivable 85 134 101 835Enterprise Development Trust beneficiaries 41 536 48 022Share based payments receivables - 149 732Other receivables 205 914 207 326

365 915 510 557

Other receivables include mainly staff debtors, accrued income and other sundry debtors.

18. Prepayments

Prepayments 2 612 255 1 408 272

19. Cash and cash equivalents

Cash and cash equivalents consist of:

Cash and deposits 2 272 620 2 600 694

Cash and cash equivalents consists of South African accounts denominated in Rands and foreign bank accounts. Foreignaccounts are translated to South African Rands using the closing spot rate at year end. Total USD accounts translated at yearend amounted to R1.1 billion (2017: R1 billion).

The group is exposed to certain concentrations of credit risk relating to its cash, current investments and derivative assets. Itplaces these instruments mainly with major banking groups and high-quality institutions that have high credit ratings. Thegroup’s treasury policy is designed to limit exposure to any one institution and to invest excess cash in low-risk investmentaccounts. As at 31 March 2018, the group held the majority of its cash, deposits and derivative assets with local andinternational banks with a ‘Baa3’ credit rating or higher (Moody’s International’s Long-term Deposit rating). The counterpartiesthat are used by the group are evaluated on a continuous basis.

20. Share capital and share premium

Authorised3 000 000 000 ordinary shares of R0.0001 each (2017: 3 000 000 000) 300 300

Issued (fully paid up)337 500 000 ordinary shares of R0.0001 each (2017: 337 500 000) 34 34Share premium 17 216 236 17 216 236

17 216 270 17 216 270

Refer to note 29 for details of share appreciation rights issued.

60



R '000 R '000

21. Other reserves

Hedging reserveBalance at 1 April (413 825) 119 791Released to hedged item 56 680 104 377Released to hedged item - tax portion 2 528 (44 144)Revaluation (665 303) (774 282)Revaluation - tax portion 167 676 180 433

Balance at 31 March (852 244) (413 825)

The hedging reserve relates to the changes in the fair value of derivative financial instruments that are designated as cashflow hedges of forecasted transactions or firm commitments. The changes in fair value are recognised in the hedgingreserve until the forecasted transaction or firm commitment results in the recognition of an asset or liability, at which pointsuch deferred gains or losses are included in the initial measurement of the asset or liability.

The existing control business combination reserve is used in common control transactions (where all combining entities in abusiness combination are ultimately controlled by the same entity) where the excess of the cost over the acquirer'sproportionate share of the net assets is allocated to this reserve.

The share based payment reserve represents the fair value of equity settled share options that are expected to becomeexercisable in terms of the group's equity settled schemes over the vesting period. This reserve is adjusted when thecompany revises its estimates of the numbers of share options that are expected to become exercisable. It recognises theimpact of revision of original estimates, if any, in profit or loss, with a corresponding adjustment to this reserve in equity forequity settled plans.

The fair value reserve relates to changes in the fair value of investments classified as available-for-sale.

The foreign currency translation reserve relates to exchange differences arising from the translation of foreign subsidiaries’and joint ventures’ statements of comprehensive income at average exchange rates for the year and their statement offinancial position at the ruling exchange rates at the year-end rate.

61



R '000 R '000

22. Finance lease obligation

Future minimum lease payments due - within one year 604 391 685 372 - in second to fifth year inclusive 3 724 152 3 803 143 - later than five years 6 447 007 8 416 186

10 775 550 12 904 701less: future finance charges (2 206 701) (2 889 735)

Present value of minimum lease payments 8 568 849 10 014 966

Present value of future minimum lease payments due - within one year 308 777 334 700 - in second to fifth year inclusive 2 596 013 2 414 065 - later than five years 5 664 059 7 266 201

8 568 849 10 014 966

Total liabilities 8 568 849 10 014 966Less: Current portion (308 778) (334 700)

8 260 071 9 680 266

Analysis of finance lease liabilities Currency Year of finalrepayment

Fixed interestrate

2018R '000

2017R '000

Transponder 1-19 USD 2027 4.5% 3 242 089 3 964 523Transponder 20 USD 2027 4.5% 154 385 191 811Transponder 21 USD 2031 4.98% 210 868 269 044Transponder 20B USD 2032 3.50% 4 961 507 5 589 588

8 568 849 10 014 966

23. Long term loan

Movement in carrying amount:

At the beginning of the year - 283 339Drawdown on the long term loan - 2 200 000Capital repayment - (2 483 339)Interest repayment - (45 887)Interest accrued - 45 887

- -

The loan beared interest at a variable rate equal to the 3-month JIBAR + 185 points. The loan was repaid during the prioryear.

The group drew down on a Nedbank borrowing facility to the value of R 1.5 billion in the current year. This was classified ascurrent and repaid in full.

24. Payable for Programme and film rights

Unsecured - Non-interest bearing:CurrentProgramme and film rights 1 460 228 1 520 173

This liability is denominated in a combination of South African Rands and US dollars.

62



R '000 R '000

25. Provisions

Restructuring 164 211 -Ad valorem 23 100 23 100Onerous contract - 77 809

187 311 100 909

In 2017 the onerous contract of R77 million, related to a 3 year contract to acquire content from SABC. Due to strategychange, it was decided that content would not be aired. The group made provision for this because it still needed to meet itscontractual obligations even though it would be of no value to the group. The provision was reversed in the current year.

The provision of Ad Valorem relates to an investigation by tax authorities in respect of the value ascribed to digital satellitedecoders purchased for onward sale to major retailers. The provision was raised for the payment of these duties.

The restructuring provision relates to staff reorganisation that took place in the current year.

26. Related party balances

Subsidiaries

Amounts due from related parties: Non-current 1 077 707 571 932Amounts due from related parties: Current 1 172 256 1 628 807Amounts due to related parties: Non-current (37 478) (38 140)Amounts due to related parties: Current (298 729) (272 515)

1 913 756 1 890 084

Amounts due from related parties

Non-currentPrincipal parent companyMIH Holdings Proprietary Limited 12 490 12 490Fellow subsidiariesOther 284 284MIH Treasury Services Proprietary Limited 965 811 539 109Joint venturesVast Networks Proprietary Limited 99 122 20 049

1 077 707 571 932

Amounts due from related partiesCurrentPrincipal parent companyMIH Holdings Proprietary Limited 196 5 244Fellow subsidiaries:Irdeto USA Inc. 6 170 8 623Irdeto South Africa Proprietary Limited 573 923Media24 Ltd Proprietary Limited - 5 244NMS Communications Proprietary Limited 6 616 6 190MultiChoice Africa Limited 855 926 1 200 081MultiChoice Nigeria Limited 65 169 83 819OLX BV 3 425 9 233Naspers Limited 13 13Media 24 Divisions 11 303 -MSS Local Productions Nigeria Ltd 194 070 301 585ShowMax BV 19 623 2 265Other 9 63

63



R '000 R '000

26. Related party balances (continued)

Joint venturesThe Sharks Proprietary Limited - 379WeChat Africa Services Proprietary Limited 9 163 5 145

1 172 256 1 628 807

These current balances are unsecured, interest free and have no fixed terms of repayment.

Amounts due to related parties

Non-Current

Principal parent companyMIH Holdings Proprietary Limited 2 659 2 659Fellow subsidiaries Media24 Proprietary Limited 34 819 34 819Other - 662

37 478 38 140

Current

Principal parent companyMIH Holdings Proprietary Limited 2 358 2 324Fellow subsidiaries Irdeto Africa BV 86 651 39 898MIH Finance VOF 30 407 35 227Myriad / MIH (Malta) Limited 5 506 51 486Myriad International Holdings BV 16 503 3 691Myraid Services Limited 3 127 3 546Local Productions (Kenya) Limited 3 499 6 141MultiChoice Africa Limited 2 335 -MSS Local Productions Nigeria Limited 13 335 -24.Com Online Studio Proprietary Limited 1 603 -New Media Publishing Proprietary Limited 4 635 4 626ShowMax BV 127 647 125 045Other 1 123 531

298 729 272 515

These balances are unsecured, interest free and have no fixed terms of repayment.

64



R '000 R '000

27. Related parties transactions

27.1 Relationship with parent

The group's parent company is MIH Holdings Proprietary Limited, which holds 80% of MultiChoice South Africa HoldingsProprietary Limited's issued ordinary share capital. The ultimate controlling party is Naspers Limited, incorporated in SouthAfrica.

27.2 Related party transactions

The group entered into transactions with a number of related parties, including equity investees, shareholders and entitiesunder common control. The significant transactions with related parties are summarised below. Transactions that areeliminated on consolidation are not included.

Sales of goods and servicesMedia24 Proprietary Limited 8 511 26 112MultiChoice Africa Limited - Sale of programming 6 186 440 7 346 646MultiChoice Africa Limited - Subscriber management fees 1 218 140 1 009 519MultiChoice Nigeria Limited - 240 814PayU Payment Solutions Proprietary Limited - 53Naspers Limited 165 1 176Health24 Proprietary Limited - 380Takealot Online (RF) Proprietary Limited 5 536 -ShowMax BV 20 389 10 812Other 865 2 128

7 440 046 8 637 640

7 440 046 8 637 640

Purchases of goods and servicesIrdeto Africa BV 816 176 773 595New Media Publishing Proprietary Limited 74 861 118 542MIH Holdings Proprietary Limited 411 89 444Irdeto USA Inc. 17 942 9 619Local Productions (Kenya) Limited 54 354 82 079MultiChoice Africa Limited 69 080 69 958PayU Payments Solutions Proprietary Limited 2 008 1 002Space Station Partnership - 55224.Com Online Studio Proprietary Limited 5 624 -MSS Local Productions Nigeria Limited 45 981 135 988ShowMax BV 443 701 417 576Other 737 1 999

1 530 875 1 700 354

Recoveries, recharges and otherMIH Holdings Limited (91 341) -MultiChoice Nigeria Limited 21 598 -Media24 Proprietary Limited 65 000 (1 063)

(4 743) (1 063)

InterestInterest paid to MIH Holdings Proprietary Limited on short-term funding (35 159) (63 035)

65



R '000 R '000

27. Related parties transactions (continued)

27.3 Key management staff compensation

Key management staff are those persons who have authority and responsibility for planning, directing and controlling theactivities of the group. Comparatives have not been restated for changes in the composition of key management.

Key management remuneration - ConsolidatedShort-term employee benefits 129 551 77 965Other long-term benefits 6 689 5 415Share-based payment charge 20 184 10 247

Fees paid to key management 156 424 93 627

Non-executive directorsDirectors' fees 52 709 52 097

All of these amounts are paid by companies in the group other than MCSAH.

The total executive directors' and key management emoluments amounted to R156.4 million (2017: R93.6 million),comprising short-term employee benefits of R129.6 million (2017: R78 million), post-employment benefits of R6.7 million(2017: R5.4 million), and share-based payment charges of R20.2 million (2017: R10.2 million).

Share options and share allocations

The aggregate number of shares/share appreciation rights granted to the executive directors and key management duringthe 2018 financial year and the number of shares/share appreciation rights allocated to the executive directors and keymanagement at 31 March 2018 respectively are:

For shares listed on a recognised stock exchange: 23 342 (2017: 13 329) Naspers Limited Class N ordinaryshares were allocated during the 2018 financial year and an aggregate of 359 162 (2017: 655 591) NaspersLimited Class N ordinary shares were allocated as at 31 March 2018.

For share appreciation rights (SARs) in unlisted companies: 536 572 (2017: 635 405) MultiChoice 2008 SARswere allocated during the 2018 financial year and an aggregate of 2 959 426 (2017: 1 742 254) MultiChoice 2008SARs were allocated as at 31 March 2018;

Nil (2017:24 450) Naspers Global Ecommerce SARs were allocated during the 2018 financial year and anaggregate of Nil (2017: 7 509 838) Naspers Global Ecommerce SARs were allocated as at 31 March 2018;

Nil (2017:63 419) Showmax SARs were allocated during the 2018 financial year and an aggregate of 44 130 (2017: 177 626) Showmax SARs were allocated as at 31 March 2018.

Nil (2017: Nil) Media 24 SARs were allocated during the 2018 financial year and an aggregate of Nil (2017: 55377) Media 24 SARs were allocated as at 31 March 2018.

These shares and SARs were offered on the same terms and conditions as those offered to employees of the group.

66



R '000 R '000

28. Directors' emoluments

Directors and prescribed officers emoluments 25 330 28 776Non-executive directorsFees for services as directors of the company 4 412 3 531Remuneration for services to other group companies 37 698 35 705Fees for services as directors of other group companies 10 599 12 861

52 709 52 097

78 039 80 873

No director has a notice period of more than one year.

The company directors’ service contracts do not include predetermined compensation as a result of termination that wouldexceed one year’s salary and benefits and none are linked to any restraint payments.

The individual directors received the following remuneration and emoluments:

2018 Salary andother

allowances(4)

Annual cashbonuses andperformance-

relatedpayments(1)

Pensioncontributions

paid onbehalf of

director tothe

pensionscheme

Total

Executive directors R'000 R'000 R'000 R'000F L N Letele(3) 7 821 4 958 - 12 779U Raman(2)(3) 4 480 7 436 635 12 551

12 301 12 394 635 25 330

Executive directors' annual performance payment is based on financial, operational and discrete objectives, which wereapproved by the human resources and remuneration committee in advance. Remuneration is earned for services rendered inconnection with the carrying on of the affairs of the company.

Notes

(1) Relates to payments made during the current year.(2) Director and prescribed officer(3) Paid by other companies in the group. (4) Included directors' fees

67



28. Directors' emoluments (continued)

2017 Salary andother

allowances(6)

Annual cashbonuses andperformance-

relatedpayments(1)

Pensioncontributions

paid onbehalf of

director tothe

pensionscheme

Total

Executive directors R'000 R'000 R'000 R'000F L N Letele(4) 7 474 1 400 - 8 874M I Patel(3)(4) 6 293 1 051 645 7 989U Raman(3)(4)(5) 4 063 7 000 325 11 388N Wadee(2)(3)(4) 470 55 - 525

18 300 9 506 970 28 776

Executive directors' annual performance payment is based on financial, operational and discrete objectives, which wereapproved by the human resources and remuneration committee in advance. Remuneration is earned for services rendered inconnection with the carrying on of the affairs of the company.

Notes

(1) Relates to payments made during the current year.(2) Resigned on 1 June 2016. No option disclosure information has been provided at 31 March 2017 as he was not a

director at that date.(3) Director and prescribed officer.(4) Paid by other companies in the group.(5) Appointed 1 June 2016(6) Included directors' fees

Directors' remuneration Directors’ fees Committee(2) and trusteefees(3)

2018 Paid forservices tothe group(5)

Paid forservices toother groupcompanies

Paid forservices tothe group(5)




Total

Non-executivedirectors

R'000 R'000 R'000 R'000 R'000 R'000 R'000

S Dakile-Hlongwane(1)(2) - - 455 - 204 - 659D G Eriksson(1)(2) - - 686 3 005 668 3 040 7 399K D Moroka(1)(2) - - 455 356 23 - 834S J Z Pacak(1)(2) - - 456 3 856 215 342 4 869E Masilela(4) - - 455 - 340 - 795K B Sibiya(1) - - 455 - - - 455B van Dijk(4) - 36 006 - - - - 36 006JJ Volkwyn(5) - 1 692 - - - - 1 692

- 37 698 2 962 7 217 1 450 3 382 52 709

68




Notes

(1) Directors's fees include fees for services as directors , where appropriate for Media24 Proprietary Limited, Naspers Limited and NMS Insurance Services Limited.

(2) Committee fees include fees for the attendance of the audit committee, risk committee, human resources and remuneration committee, the nomination committee and the social and ethics committee meetings of the board. Other fees relate to payments for other services to the group.

(3) Trustee fees include fees for the attendance of the various retirement fund trustee meetings of the group’s retirement funds. An additional fee may be paid to directors for work done.

(4) Remunerated as an employee of another Naspers group company.(5) All amounts are paid by companies in the group other than MultiChoice South Africa Holdings Proprietary Limited.

69




Directors' remuneration Directors’ fees Committee(2) and trusteefees(3)

2017 Paid forservices tothe group(5)

Paid forservices to

other group companies


Paid forservices to



Paid forservices to


Total

Non-executivedirectors

R'000 R'000 R'000 R'000 R'000 R'000 R'000

S Dakile-Hlongwane(1)(2) - - 321 - 254 - 575D G Eriksson(1)(2) - - 428 3 282 509 3 145 7 364K D Moroka(1)(2) - - 214 - 172 - 386S J Z Pacak(1)(2) - - 428 3 455 201 2 979 7 063E Masilela(4) - - 428 - 255 - 683K B Sibiya(1) - - 321 - - - 321B van Dijk(4) - 30 297 - - - - 30 297JJ Volkwyn(5) - 5 408 - - - - 5 408

- 35 705 2 140 6 737 1 391 6 124 52 097

Notes

(1) Directors' fees include fees for services as directors, where appropriate for Media24 Proprietary Limited, Naspers Limited and NMS Insurance Services SA Proprietary Limited.

(2) Committee fees include fees for the attendance of the audit committee, risk committee, human resources and remuneration committee, the nomination committee and the social and ethics committee meetings of the board. Other fees relate to payments for other services to the group.

(3) Trustee fees include fees for the attendance of the various retirement fund trustee meetings of the group’s retirement funds. An additional fee may be paid to directors for work done.

(4) Remunerated as an employee of another Naspers group company.(5) All amounts are paid by companies in the group other than MultiChoice South Africa Holdings Proprietary Limited.

General notes

Non-executive directors are subject to regulations on appointment and rotation in terms of the company’s memorandum ofincorporation and the South African Companies Act.

70




Directors’ interest in the group's share incentive schemes

The executive directors' and non-executive directors' of MultiChoice South Africa Holdings Proprietary Limited are allowed toparticipate in MultiChoice South Africa Holdings Proprietary Limited group share-based incentive schemes. Details as at 31 March 2018 in respect of the executive directors', non-executive directors' and prescribed officers' participation in shareoptions, are as follows:

2018Name Incentive scheme Offer date Number of N

sharesOffer price Release

periodOption fair

valueR

J J Volkwyn MIH Services FZ LLC - N - 24/07/2015 3 636 1822.89 24/07/2018 746.68ZAR (Naspers shares) 24/07/2015 3 636 1822.89 24/07/2019 830.40

24/07/2015 3 636 1822.89 24/07/2020 904.65

10 908

Bob Van Dijk Naspers Global 12/09/2014 1 493 226 15.58 12/09/2018 15.59eCommerce SAR Plan 12/09/2014 1 493 229 15.58 12/09/2019 16.29

15/08/2017 146 789 27.25 15/08/2018 8.9915/08/2017 146 789 27.25 15/08/2019 10.3915/08/2017 146 789 27.25 15/08/2020 11.4015/08/2017 146 789 27.25 15/08/2021 12.2715/08/2017 146 789 27.25 15/08/2022 13.0408/09/2017 35 051 27.60 08/09/2018 9.0108/09/2017 35 051 27.60 08/09/2019 10.3208/09/2017 35 051 27.60 08/09/2020 11.3808/09/2017 35 051 27.60 08/09/2021 12.2408/09/2017 35 055 27.60 08/09/2022 13.00

3 895 659

MIH Services FZ LLC 08/09/2017 12 932 2861.73 08/09/2018 638.52(Naspers shares - 2017) 08/09/2017 12 932 2861.73 08/09/2019 805.20

08/09/2017 12 932 2861.73 08/09/2020 950.8708/09/2017 12 932 2861.73 08/09/2021 1084.59

51 728

71






periodOption fair

valueR

Bob Van Dijk MIH Services FZ LLC - N - 11/07/2013 6 698 767.89 11/07/2018 344.19ZAR (Naspers shares) 28/03/2014 277 334 1152.89 28/03/2019 581.92

05/07/2016 49 302 2162.89 05/07/2019 842.7805/07/2016 49 302 2162.89 05/07/2020 948.4005/07/2016 49 302 2162.89 05/07/2021 1041.61

431 938

SimilarWeb SAR Plan 10/09/2014 39 937 1.45 10/09/2018 4.7310/09/2014 39 937 1.45 10/09/2019 4.78

79 874

Flipkart SAR Plan 10/09/2014 73 170 63.64 10/09/2018 24.6310/09/2014 73 174 63.64 10/09/2019 26.04

146 344

U Raman MIH HOLDINGS Share 27/06/2016 1 551 2098.89 27/06/2019 824.95Trust (Naspers Shares) 27/06/2016 1 551 2098.89 27/06/2020 927.61

27/06/2016 1 553 2098.89 27/06/2021 1020.0405/07/2016 136 2162.89 05/07/2019 842.7805/07/2016 136 2162.89 05/07/2020 948.4005/07/2016 137 2162.89 05/07/2021 1041.61

5 064

MIH HOLDINGS Share 28/08/2017 1 049 2945.89 28/08/2018 673.40Trust (Naspers shares - 28/08/2017 1 049 2945.89 28/08/2019 851.092017) 28/08/2017 1 049 2945.89 28/08/2020 1006.02

28/08/2017 1 052 2945.89 28/08/2021 1144.64

4 199

Showmax SAR Plan 01/07/2016 1 572 18.00 01/07/2018 5.4101/07/2016 1 572 18.00 01/07/2019 6.2501/07/2016 1 572 18.00 01/07/2020 6.9001/07/2016 1 575 18.00 01/07/2021 7.43

6 291

MCA 2008 SAR Plan 27/06/2016 85 769 116.30 27/06/2019 13.4227/06/2016 85 769 116.30 27/06/2020 14.6727/06/2016 85 771 116.30 27/06/2021 16.5628/06/2017 7 049 94.39 28/06/2020 20.2528/06/2017 7 049 94.39 28/06/2021 23.2828/06/2017 7 051 94.39 28/06/2022 26.33

278 458

72






periodOption fair

valueR

S J Z Pacak MIH (Mauritius) - N - ZAR 07/09/2012 18 000 484.70 07/09/2017 189.16(Naspers shares)

18 000

F N Letele MCA 2008 SAR Plan 10/09/2012 6 458 103.23 10/09/2017 16.667

6 458

J J Volkwyn MIH (Mauritius) - N - ZAR 24/07/2015 3 636 1825.00 24/07/2018 746.68(Naspers shares) 24/07/2015 3 636 1825.00 24/07/2019 830.40

24/07/2015 3 638 1825.00 24/07/2020 904.65

10 910

M I Patel MIH HOLDINGS Share 07/09/2012 2 617 484.70 07/09/2017 194.95Trust (Naspers Shares) 11/07/2013 1 368 770.00 11/07/2017 307.28

11/07/2013 1 368 770.00 11/07/2018 334.7504/09/2014 1 234 1380.78 04/09/2017 568.4604/09/2014 1 234 1380.78 04/09/2018 626.1104/09/2014 1 234 1380.78 04/09/2019 676.9618/09/2015 2 247 1742.96 18/09/2018 765.97818/09/2015 2 247 1742.96 18/09/2019 845.1618/09/2015 2 247 1742.96 18/09/2020 914.2925/09/2015 459 1702.64 25/09/2018 748.8925/09/2015 459 1702.64 25/09/2019 826.6725/09/2015 460 1702.64 25/09/2020 894.6629/08/2016 1 938 2431.64 29/08/2019 909.7629/08/2016 1 938 2431.64 29/08/2020 1030.1629/08/2016 1 938 2431.64 29/08/2021 1135.31

22 988

Showmax SAR Plan 18/09/2015 2 222 18.00 18/09/2017 4.8518/09/2015 2 222 18.00 18/09/2018 5.5218/09/2015 2 222 18.00 18/09/2019 6.0718/09/2015 2 223 18.00 18/09/2020 6.52

8 889

73






periodOption fair

valueR

M I Patel MCA 2008 SAR Plan 10/09/2012 19 734 103.23 10/09/2017 16.6711/07/2013 19 883 117.35 11/07/2017 14.8411/07/2013 19 885 117.35 11/07/2018 15.8015/09/2014 28 198 125.60 15/09/2017 15.8315/09/2014 28 198 125.60 15/09/2018 16.7615/09/2014 28 198 125.60 15/09/2019 18.7915/09/2015 82 276 113.19 15/09/2018 19.3915/09/2015 82 276 113.19 15/09/2019 22.4215/09/2015 82 276 113.19 15/09/2020 25.7001/09/2016 58 369 116.30 01/09/2019 22.7301/09/2016 58 369 116.30 01/09/2020 25.8701/09/2016 58 370 116.30 01/09/2021 29.15

566 032

U Raman MIH HOLDINGS Share 27/06/2016 1 551 2101.00 27/06/2019 824.95Trust (Naspers Shares) 27/06/2016 1 551 2101.00 27/06/2020 927.61

27/06/2016 1 553 2101.00 27/06/2021 1020.0405/07/2016 136 2165.00 05/07/2019 842.7805/07/2016 136 2165.00 05/07/2020 948.4005/07/2016 137 2165.00 05/07/2021 1041.61

5 064

Showmax SAR Plan 01/07/2016 1 572 18.00 01/07/2017 4.6401/07/2016 1 572 18.00 01/07/2018 5.3801/07/2016 1 572 18.00 01/07/2019 5.9701/07/2016 1 572 18.00 01/07/2020 6.4801/07/2016 1 575 18.00 01/07/2021 6.91

7 863

MCA 2008 SAR Plan 27/06/2016 85 769 116.30 27/06/2019 21.6527/06/2016 85 769 116.30 27/06/2020 24.6927/06/2016 85 771 116.30 27/06/2021 27.88

257 309

(1) The value of the option represents the fair value on grant date in accordance with IFRS

Refer to note 28 for Key management remuneration.

74



2018 2017R '000 R '000

29. Share based payment liability

29.1 Effect on profit and financial position

Non-current liabilities 68 464 81 727Current liabilities 72 512 73 596

140 976 155 323

Share based payments expense - Equity settled 58 281 40 626 - Cash settled 52 506 (5 684)

110 787 34 942

29.2 Salient features applicable to each plan

29.2.1 Share trust incentive plans

Date ofincorporation

Vestingperiod

Period to expirefrom date of offer

IFRS 2classification/

Method ofsettlement

MIH (Mauritius) Limited Share Trust 25 March 1999 1/3 vest after3,4,5 years

10 years Equity settled

MIH Holdings Share Trust 27 September 1993 1/3 vest after3,4,5 years


Naspers Restricted Stock Plan Trust* 11 September 2015 1/4 vest after1,2,3,4 years

** Equity settled

At the Naspers annual general meeting held on Friday 27 August 2010 a resolution was adopted by shareholders wherebythe maximum number of shares available for fresh allocation after 27 August 2010 to participants under this scheme andany other share incentive scheme of Naspers or any direct or indirect subsidiary of Naspers is 40 588 541 shares whichnumber will increase by virtue of any subdivision of shares or decrease by virtue of any consolidation of shares, as the casemay be.

*The Naspers Restricted Stock Plan Trust may issue no more than 200 000 awards in aggregate during any one financialyear.

**The Naspers shares are automatically settled with the participants on their respective vesting dates.

75



29. Share based payment liability (continued)

29.2.2 Share Appreciation Rights plans (SARs)

Date ofincorporation

Vestingperiod

Period to expirefrom date of offer

IFRS 2classification/

Method ofsettlement

Irdeto Access BV 2012 SAR Scheme** 28 August 2012 1/5 vest after1,2,3,4,5 years

10 Years Cash settled

MCA 2008 SAR Scheme 02 April 2008 1/3 vest after3,4,5 years

10 years Cash settled

Showmax SAR scheme 25 June 2015 1/5 vest after1,2,3,4,5 years


Konga Online Shopping Limited SARscheme

25 June 2015 1/5 vest after1,2,3,4,5 years


Souq Group limited SAR Scheme ^^ 23 August 2013 1/5 vest after1,2,3,4,5 years


Takealot Online Proprietary Limited SARscheme

25 June 2015 1/5 vest after1,2,3,4,5 years


Flipkart Private Limited SAR Scheme ^^ 23 August 2013 1/5 vest after1,2,3,4,5 years

10 Years Equity settled

Naspers Global E-Commerce SAR Scheme 19 June 2014 1/5 vest after1,2,3,4,5 years

10 Years Equity settled

76




29.2.2 Share Appreciation Rights plans (SARs) (continued)

Maximum awards permissible: 10% is the maximum percentage of the respective companies issued/notional share capitalthat the applicable SAR plan may allocate to participants. For ShowMax 15% is the maximum percentage of the respectivecompanies issued/notional share capital that the applicable SAR plan may allocate to participants.

** Irdeto Access B.V. 2012 share appreciation rights plans and Irdeto Access Share Trust may collectively issue no morethan 15% of the total number of Irdeto Access B.V. ordinary and notional shares as recorded in the most recent pro formacapitalisation table.

^^ For these two schemes, the initial grants vest at 40% after 1 year and at 20% after 2, 3 and 4 years with all subsequentgrants vesting as indicated in the table above.

29.2.3 Additional information

All share options, with the exception of options granted in the Naspers Restricted Stock Plan Trust (Naspers RSU scheme)are granted with an exercise price of not less than 100% of the market value or fair value of the respective company'sshares on the date of the grant. All share options granted in the Naspers RSU scheme have a strike price of zero. All SARsare granted with an exercise price of not less than 100% of the fair value of the SARs on the date of the grant. All unvestedshare options/SARs are subject to forfeiture upon termination of employment. All cancelled options/SARs are options/SARscancelled by mutual agreement between the employer and employee.

MIH Holdings Limited Plan

In terms of a section 311 scheme of arrangement on 20 December 2002, Naspers Limited offered one Naspers N ordinaryshare to all the minority shareholders of MIH Holdings Limited, including the MIH Holdings plan, for every 2,25 MIHHoldings shares that it held. All the MIH Holdings shares were exchanged for Naspers N ordinary shares on 23 December2002. Subsequent offers are of Naspers N ordinary shares. Unvested share options are subject to forfeiture upontermination of employment. Cancelled options are options cancelled by mutual agreement between the employer andemployee.

MIH (Mauritius) Limited Share Trust

As part of the merger between MIH Limited and MIH (BVI) Limited on 20 December 2002, Naspers offered 3,5 Naspers Nordinary shares for each MIH Limited share held by minority shareholders, including the MIH Limited plan. The MIH Limitedplan was converted into the MIH (BVI) Limited plan at which time all its MIH Limited shares were exchanged for Naspers Nordinary shares and Naspers American Depository Securities (“ADSs”). Subsequent offers are of Naspers N ordinaryshares. During the prior financial year, the ADS's were converted into Naspers N ordinary shares.

77




2018 MCA 2008SAR plan

Irdeto 2012SAR plan

ShowmaxSAR plan

Flipkart SARplan

NasperGlobal

ecommerceSAR plan

Konga SARplan

Souq SARplan

TakealotSAR plan

SARsOutstandingat 1 April

23 251 981 136 378 065 1 100 53 119 4 084 2 041 3 829

Movements (1 616) 10 848 8 754 - - - - -Granted 7 961 661 1 319 174 811 - - - - -Exercised (80 948) (5 741) - - (53 119) - - -Forfeited (3 330 471) - (196 054) (1 100) - (4 084) (2 041) (3 829)

Outstandingat 31 March

27 800 607 6 562 365 576 - - - - -

Available tobeimplementedat 31 March

5 331 078 125 77 325 - - - - -

Weightedaverageexerciseprice

ZAR USD USD USD USD USD USD ZAR

Outstandingat 1 April

114.66 15.37 18.00 63.64 18.36 8.57 17.15 111.04

Movements 99.44 19.17 18.00 - - - - -Granted 94.39 43.24 18.00 - - - - -Exercised 88.05 17.00 - - 18.36 - - -Forfeited 112.74 - 18.00 63.64 - 8.57 17.15 111.04


109.16 25.82 18.00 - - - - -


109.90 15.69 18.00 - - - - -

Weightedaverageshare priceof optionstaken upduring theyear

Shares 80 948 5 741 - - 53 119 - - -Weightedaverage shareprice

94.39 43.24 - - 27.44 - - -

78




2017 MCA 2008SAR plan

Irdeto 2012SAR plan

ShowmaxSAR plan

Flipkart SARplan

NasperGlobal

ecommerceSAR plan

Konga SARplan

Souq SARplan

TakealotSAR plan

SARsOutstandingat 1 April

18 265 920 163 251 525 - 19 255 - - -

Movements - - (23 689) 1 100 9 414 4 084 2 041 3 829Granted 8 120 630 - 174 958 - 24 450 - - -Exercised (1 341 060) (27) - - - - - -Forfeited (1 783 277) - (24 729) - - - - -Cancelled (10 232) - - - - - - -


23 251 981 136 378 065 1 100 53 119 4 084 2 041 3 829


2 920 816 92 - 220 9 584 816 408 765

Weightedaverageexerciseprice

ZAR USD USD USD USD USD USD ZAR

Outstandingat 1 April

112.93 14.77 18.00 - 15.58 - - -

Movements - - 18.00 63.64 18.59 8.57 17.15 111.04Granted 116.30 - 18.00 - 20.45 - - -Exercised 99.08 11.73 - - - - - -Forfeited 116.13 - 18.00 - - - - -Cancelled 116.30 - - - - - - -


114.66 15.37 18.00 63.64 18.36 8.57 17.15 111.04


103.96 16.00 - 63.64 16.17 8.57 17.15 111.04

Weightedaverageshare priceof optionstaken upduring theyear

Shares 1 341 060 27 - - - - - -Weightedaverage shareprice

116.30 33.00 - - - - - -

79




Share options outstanding

Exercise prices Numberoutstanding at31 March 2018

Weightedaverage

remainingcontractuallife (year)

MCA 2008 SAR plan (ZAR)69.31 2 406 0.9982.18 87 066 1.3991.74 347 609 2.3994.39 7 527 630 9.2695.95 636 520 3.54103.23 1 270 588 4.46113.19 6 076 330 7.47116.30 6 805 461 8.42117.35 2 478 128 5.45125.60 2 568 869 6.47

27 800 607

Irdeto 2012 SAR plan (USD)11.73 626 5.4416.00 116 4.4419.20 810 6.4520.48 2 727 7.4733.00 964 8.4243.24 1 319 9.25

6 562

Showmax SAR plan (USD)18.00 365 576 8.35

365 576

80






Weightedaverage


MCA 2008 SAR plan (ZAR)69.31 2 406 1.9982.18 119 991 2.4091.74 415 195 3.3995.95 695 694 4.53103.23 1 398 396 5.46113.19 6 978 277 8.47116.30 7 807 909 9.42117.35 2 903 072 6.45125.60 2 931 041 7.47

23 251 981

Irdeto 2012 SAR plan (USD)11.73 20 6.4416.00 116 5.44

136

Showmax SAR plan (USD)18.00 378 065 8.90

378 065

Flipkart SAR plan (USD)63.64 1 100 8.45

1 100

Nasper Global ecommerce SAR plan (USD)15.58 19 255 7.4618.59 9 414 8.4720.45 24 450 9.42

53 119

Konga SAR plan (USD)8.57 4 084 8.45

4 084

Souq SAR plan (USD)17.15 2 041 8.45

2 041

Takealot SAR plan (ZAR)111.04 3 829 8.45

3 829

81




31 March 2018 MCA 2008SAR plan

Irdeto 2012SAR plan

ShowmaxSAR plan

NasperGlobal

ecommerceSAR plan

Weighted average fair value at measurement date 23.37 12.65 6.95 -This weighted average fair value has been calculated using theBermudan Binomial option pricing model, using the followinginputs and assumptions:Weighted average share price 77.51 43.61 18.00 -Weighted average exercise price 94.39 43.24 18.00 -Weighted average expected volatility (%) %21.60 %29.20 %39.20 %-Weighted average option life (years) 10.00 10.00 10.00 -Weighted average risk-free interest rate (%) (based on zero ratebond yield at perfect fit)

%7.80 %2.80 %2.80 %-

Weighted average annual suboptimal rate (%) %100.00 %122.50 %100.00 %-Weighted average vesting period (years) 4.00 3.01 3.00 -

31 March 2017 MCA 2008SAR plan

Irdeto 2012SAR plan

ShowmaxSAR plan

NasperGlobal

ecommerceSAR plan

Weighted average fair value at measurement date 25.85 - 6.07 6.21This weighted average fair value has been calculated using theBermudan Binomial option pricing model, using the followinginputs and assumptions:Weighted average share price 87.30 - 18.00 20.45Weighted average exercise price 116.30 - 18.00 20.45Weighted average expected volatility (%) %22.50 %- %32.60 %28.50Weighted average option life (years) 10.00 - 10.00 10.00Weighted average risk-free interest rate (%) (based on zero ratebond yield at perfect fit)

%8.20 %- %2.50 %1.40

Weighted average annual suboptimal rate (%) %100.00 %- %100.00 %100.00Weighted average vesting period (years) 4.00 - 3.00 3.00

82




2018 MIHHoldings Ltdshare trustincentive

plan

MIH Services(F2 LLC) - N -

ZAR Sharetrust

incentiveplans

NaspersRSU Share

trustincentive

plans

SARsOutstanding at 1 April 203 944 43 512 26 735Movements 4 284 584 (1 285)Granted 41 536 1 083 10 384Exercised (88 763) (32 602) (6 542)Forfeited (9 635) (329) (2 541)

Outstanding at 31 March 151 366 12 248 26 751Available to be implemented at 31 March 38 575 129 -

Weighted average exercise price R R ROutstanding at 1 April 1 081.60 572.72 -Movements 2 111.17 1 441.00 -Granted 3 016.90 2 945.89 -Exercised 696.38 152.27 -Forfeited 2 071.15 2 945.89 -

Outstanding at 31 March 1 804.71 1 879.38 -Available to be implemented at 31 March 584.85 1 004.92 -

Weighted average share price of options taken up during the year

Shares 88 763 32 602 6 542Weighted average share price 3 097.96 3 351.94 3 295.86

2017 MIHHoldings Ltdshare trustincentive

plan

MIH Services(F2 LLC) - N -

ZAR Sharetrust

incentiveplans

NaspersRSU Share

trustincentive

plans

SARsOutstanding at 1 April 263 868 43 512 5 838Movements (25 237) - -Granted 33 020 - 46 257Exercised (63 237) - (25 171)Forfeited (4 470) - (189)

Outstanding at 31 March 203 944 43 512 26 735Available to be implemented at 31 March 84 839 32 602 -

Weighted average exercise price R R ROutstanding at 1 April 776.09 572.72 -Movements 907.85 - -Granted 2 407.54 - -Exercised 379.09 - -Forfeited 2 881.01 - -

Outstanding at 31 March 1 081.60 572.72 -Available to be implemented at 31 March 346.26 153.65 -

Weighted average share price of options taken up during the year

Shares 63 237 - 25 171Weighted average share price 2 314.55 - 117.80

83






Weightedaverage


MIH Holdings Limited share trust incentive plan (ZAR)174.79 1 034 0.48248.89 1 806 1.42303.89 3 681 2.44347.89 8 815 3.47420.89 4 127 3.98482.59 9 582 4.44886.69 9 793 5.441 264.11 250 6.501 378.67 15 688 6.441 477.88 1 008 6.681 700.53 1 904 7.491 740.85 28 644 7.472 037.86 1 703 8.672 068.89 23 8.672 098.89 4 655 8.252 162.89 409 8.272 429.53 23 082 8.422 945.89 31 104 9.423 319.99 407 9.923 531.62 1 310 9.683 809.00 2 341 9.67

151 366

MIH (Mauritius) - N - ZAR Share trust incentive plans (ZAR)886.69 149 5.441 378.67 93 6.441 700.53 45 7.491 740.85 216 7.471 822.89 10 910 7.322 429.53 81 8.422 945.89 754 9.42

12 248

Naspers RSU Share trust incentive plans (ZAR)0.00 26 751 1.60

26 751

84






Weightedaverage


MIH Holdings Limited share trust incentive plan (ZAR)138.87 30 166 0.95176.90 1 034 1.48182.00 182 0.24251.00 2 668 2.42306.00 3 981 3.44350.00 17 792 4.47423.00 13 510 4.98484.70 23 145 5.44585.28 1 196 5.91770.00 1 518 6.28888.80 14 836 6.441 266.22 578 7.501 380.78 21 786 7.441 479.99 1 764 7.681 702.64 2 381 8.491 742.96 35 595 8.472 039.97 1 997 9.672 071.00 38 9.672 431.64 29 777 9.42

203 944

MIH (Mauritius) - N - ZAR Share trust incentive plans (ZAR)138.87 21 429 0.95182.00 11 173 0.241 825.00 10 910 8.32

43 512

Naspers RSU Share trust incentive plans (ZAR)0.00 26 735 2.00

26 735

31 March 2018 MIHHoldingsLimited

share trustincentive

plan

NaspersShare Trust

MIH(Mauritius) -

N - ZARShare trustincentive

plans

NaspersRSU Share

trustincentive

plans

Weighted average fair value at measurement date 946.58 - 919.59 2 600.08This weighted average fair value has been calculated using theBermudan Binomial option pricing model, using the followinginputs and assumptions:Weighted average share price 3 016.90 - 2 945.89 -Weighted average exercise price 3 016.90 - 2 945.89 -Weighted average expected volatility (%) %26.50 %- %26.40 %-Weighted average option life (years) 10.00 - 10.00 4.00Weighted average dividend yield (%) %0.20 %- %0.20 %0.30Weighted average risk-free interest rate (%) (based on zero ratebond yield at perfect fit)

%8.00 %- %7.90 %-

Weighted average annual suboptimal rate (%) %318.00 %- %318.00 %-Weighted average vesting period (years) 2.52 - 2.51 2.51

85




31 March 2017 MIHHoldingsLimited

share trustincentive

plan

NaspersShare Trust

MIH(Mauritius) -

N - ZARShare trustincentive

plans

NaspersRSU Share

trustincentive

plans

Weighted average fair value at measurement date 1 015.29 - - 2 160.27This weighted average fair value has been calculated using theBermudan Binomial option pricing model, using the followinginputs and assumptions:Weighted average share price 2 407.54 - - -Weighted average exercise price 2 407.54 - - -Weighted average expected volatility (%) %30.60 %- %- %-Weighted average option life (years) 10.00 - - 2.00Weighted average dividend yield (%) %0.30 %- %- %0.20Weighted average risk-free interest rate (%) (based on zero ratebond yield at perfect fit)

%8.50 %- %- %-

Weighted average annual suboptimal rate (%) %316.00 %- %- %-Weighted average vesting period (years) 4.00 - - 2.51

86



R '000 R '000

30. Other payables

Deferred income 1 421 508 1 378 578Taxes and social securities 73 616 170 129Accrued leave pay 148 331 146 934Accrued bonus 343 772 342 763Accrued expenses 1 621 500 1 713 163Other current liabilities 170 977 152 246

3 779 704 3 903 813

Other current liabilities include mainly subscription debtors with credit balances, personnel accruals and sundry creditors.

31. Discontinued operations or disposal groups or non-current assets held for sale

Assets and liabilities

Non-current assets held for saleProperty, plant and equipment - 134 818Intangible assets - 1 907Inventory - 895Trade receivables - 11 173Goodwill - 138 580Other receivables - 6 875Cash and deposits - 83 659

- 377 907

Liabilities of disposal groupsTrade payables - (42 701)Accrued expenses and other current liabilities - (174 223)

- (216 924)

Net non-current assets held for sale - 160 983

In the prior year, the assets and liabilities of Huntley Media Services Proprietary Limited (formerly MWEB ConnectProprietary Limited), a wholly owned subsidiary of the group, were classified as held-for-sale. A sale agreement has beenconcluded with the buyer and subsequent to year end the competition authorities approved the sale effective 31 May 2017.

On reclassification of the assets and liabilities to held-for-sale an assessment was done on the fair value of the assets andliabilities and no impairment was required.

32. Commitments and contingencies

The group is subject to contingencies, which in the normal course of business include legal proceedings and claims thatcover a wide range of matters. These contingencies include contract and employment claims, product liability and warranty.None of these claims are expected to result in a material gain or loss for the group. The group plans to fund the abovecommitments and liabilities out of existing loan facilities and internally generated funds.

Capital expenditure

The group has commitments in respect of contracts placed for capital expenditure at 31 March 2018 amounting to R92.1million (2017: R60.3 million).

Programme and film rights

The group has entered into contracts for the purchase of programme and film rights. The commitments in respect of thecontracts amounted to R32.8 billion (2017: R25.4 billion).

87



R '000 R '000

32. Commitments and contingencies (continued)

Set-top boxes

The group has entered into contracts for the purchase of set-top boxes. The commitments in respect of the contractsamounted to R1.8 billion (2017: R1.4 billion).

Operating lease commitments

Refer to note 39 and 41 for details regarding operating lease commitments.

Guarantees

The group has guarantees of R220 million (2017: R189 million) mainly in respect of payments for sports rights and forservice contracts.

Assets pledged as security

The group pledged property, plant and equipment, investments and cash and cash equivalents with a net carrying value ofR8 106 million (2017: R8 775 million) for certain term loans. Refer note 4 for further details.

Cash and cash equivalents

The group did not designate any cash as hedge instruments in the current and prior year.

Litigation and claims

Ad Valorem

MultiChoice instituted legal action against the South African Revenue Services ("SARS") in relation to the ad valorem tariffdetermination on decoders, which SARS made in 2004. The proceedings were defended by SARS but in late 2006, thedispute was referred to the Customs Appeal Committee. The matter was heard in the High Court in August 2009.Judgment has been made in favour of MultiChoice, but SARS was successful in its application for leave to appeal. Aprovision of R23,1 million has been raised in prior years, and is included in provisions.

Due to the nature of the business activities of the group, it is exposed to a number of uncertain positions for which theexposure cannot be reliably measured. As at 2018, management raised a contingent liability of R342 million as an estimateof potential liabilities. MNET are in the process of consulting their advisors in order to resolve these matters.

33. Revenue

Hardware and software sales 1 446 959 1 330 902Subscriber management service fee 1 076 758 896 243Subscription revenue 26 870 667 26 197 816Advertising revenue 2 848 806 2 883 987Decoder maintenance revenue 345 850 324 935Reconnection fees 420 086 324 814Programming revenue 6 186 440 7 346 647Sub-licencing revenue 492 006 494 070e-Commerce revenue 26 665 19 526Other 450 766 724 704

40 165 003 40 543 644

Other revenue includes sundry revenue and related party revenue.

34. Other gains

Dividends received from Phuthuma Nathi Investments 2 (RF) Limited 18 489 19 648

88



R '000 R '000

35. Operating profit

Administration costs 385 095 427 525Amortisation of other intangible assets (refer note 6) 231 213 191 184Consultants 339 481 393 641Depreciation (refer note 4) 1 348 139 1 144 048General overheads 267 687 144 289General cost of providing services 907 475 1 271 256Hardware 3 587 177 3 457 867Impairment of other assets (55) 13 220Licence fees 176 846 167 880Maintenance 1 102 427 925 187Management fees 254 855 428 018Network costs 110 560 640 978Net (profit) on disposal of property, plant and equipment (2 593) (10 735)Programme and film rights 14 087 746 14 630 082Programme guide costs 84 359 165 350Fines and penalties - 22 000Sales and marketing 1 244 663 1 500 290Transmission 187 524 245 413Travel costs 97 480 94 044Staff costs 3 743 016 3 445 768- Salaries, wages and bonuses 3 187 018 2 918 528- Retirement benefit costs 212 489 256 221- Medical aid fund contributions 152 503 154 625- Share based payment charges 110 787 35 089- Training costs 80 219 81 305Other 1 350 584 1 105 220

Total costs of providing services, distribution and administration costs 29 503 679 30 402 526

36. Finance income

Interest receivedLoans and bank account 320 841 212 384

37. Finance costs

Trade and other payables 35 159 63 035Finance leases 372 885 318 920Other 236 885 291 762

Total finance costs 644 929 673 717

Other finance costs include mainly the financing element of discounting the content liabilities.

38. Foreign exchange differences

Gain on translation of finance lease liability 1 150 403 500 646Loss on translation of other assets and liabilities (80 755) (532 127)Loss on revaluation of forward exchange contracts (409 653) (219 043)

659 995 (250 524)

89



R '000 R '000

39. Operating lease

Future minimum lease payments- within one year 72 110 87 962- in second to fifth year inclusive 143 519 259 712- later than five years - 51 474

215 629 399 148

The group leases office and warehouse space under various non-cancellable operating leases. Certain contracts containrenewal options and escalation clauses for various periods of time.

40. Taxation

Normal- Current year 2 891 594 2 434 228- Prior year 34 530 (27 073)

2 926 124 2 407 155

Deferred- Current year 350 810 223 640- Prior year (29 732) 637

321 078 224 277

3 247 202 2 631 432

Tax rate reconciliation

Reconciliation between statutory tax rate and average effective tax rate.

Statutory tax rate for the year %28 %28

Non-deductible expenses %1.4 %-Non-taxable income %(0.3) %(0.1)Unprovided Timing Differences %0.1 %-Prior year adjustments %0.1 %(0.2)Tax attributable to associates and joint ventures %0.2 %0.2

Effective tax rate for the year %29.5 %27.9

90



R '000 R '000

41. Cash generated from operations

Operating profit 10 679 813 10 160 766Adjustments for:Depreciation and amortisation 1 579 352 1 335 232(Profit) on disposal of property, plant and equipment (2 593) (10 735)(Profit)/loss on disposal of intangible assets (4 164) 557Dividends received from Phuthuma Nathi Investments 2 (RF) Limited (listedinvestments)

(18 489) (19 648)

Reversal of bad debt provision 3 290 (5 745)Share based payment charges 110 787 35 089Impairment of other assets (55) 13 220Amortisation of hedging fund 389 470 6 137Provisions (6 216) -Other - (823)Changes in working capital:Trade and other receivables (905 228) 414 400Trade and other payables (1 414 560) 295 344Programme and film rights (282 483) (309 276)Inventory 26 621 38 198Amounts due to related parties (4 005) (5 944)Amounts due from related parties 422 355 (38 403)

10 573 895 11 908 369

42. Tax

Current tax liability at beginning of the year (82 027) (330 632)Charged to profit or loss:- South African normal current taxation (2 926 124) (2 407 155)- Other (22 022) (220)Current tax liability at end of the year 56 096 82 027

(2 974 077) (2 655 980)

43. Net interest paid

Finance income 320 841 212 384Finance costs (644 929) (673 717)Adjusted for:Finance costs accrual (13 758) (449)Discounting on programme and film rights 180 366 243 771

(157 480) (218 011)

44. Purchase of property, plant and equipment

Acquisition of property, plant and equipment (refer note 4) 431 105 7 184 578Adjusted for non-cash movements:Transmission equipment - Leased - (6 449 340)Other - (497)

431 105 734 741

45. Dividends per share

A dividend of 1925.93 cents (2017: 1925.93 cents) per share has been declared and paid during the current year.

91



R '000 R '000

46. Acquisition of Subsidiaries

Fair value of assets and liabilities acquired:Property, plant & equipment - 10 474Net current assets - 932Deferred taxation - (2 739)Long-term liabilities - (3 931)

- 4 736Minority shareholders' interest - (1 632)Derecognition of investment in associates and joint ventures - (368)Common control - (736)

Purchase consideration - 2 000Cash in entity acquired - (1 028)

Net cash outflow from acquisition of subsidiaries - 972

47. Disposal of Subsidiaries/business

Investments and loans - (130 296)Net current liabilities (23 385) (1 763)FCTR realised - (485)

(23 385) (132 544)Profit on sale (117 756) (87 456)

Net cash inflow on disposal of subsidiaries/business (141 141) (220 000)

48. Events after the reporting period

The directors are not aware of any other material event which occurred after the reporting date and up to the date of thisreport.

92

MULTICHOICE SOUTH AFRICA HOLDINGS PROPRIETARY LIMITED(Registration number 2006/015293/07)Company Annual Financial Statements for the year ended 31 March 2018

Company Statement of Financial Position as at 31 March 20182018 2017

Note(s) R '000 R '000

ASSETS

Non-currentInvestment in subsidiary 2 16 875 000 16 875 000Investment in joint venture 3 * *

16 875 000 16 875 000

EQUITY AND LIABILITIES

Capital and reservesShare capital 4 34 34Share premium 4 16 874 966 16 874 966

16 875 000 16 875 000

LIABILITIES

CurrentAmounts due to related parties 3 * *

* *

Total equity and liability 16 875 000 16 875 000

* Amounts less than R1 000.

The notes on pages 17 to 92 and 97 are an integral part of these annual financial statements.

93


Company Statement of Profit or Loss2018 2017

Note R '000 R '000

Dividends received 6 500 000 6 500 000Taxation 6 - -

Net profit and comprehensive income for the year 6 500 000 6 500 000


94


Company Statement of Changes in Equity

Number ofshares

SharecapitalR '000

Sharepremium

R '000

Retainedearnings

R '000

Total

R '000Balance at 01 April 2016 337 500 000 34 16 874 966 - 16 875 000Net profit and comprehensive incomefor the year

- - - 6 500 000 6 500 000

Dividends paid - - - (6 500 000) (6 500 000)

Balance at 31 March 2017 337 500 000 34 16 874 966 - 16 875 000

Balance at 01 April 2017 337 500 000 34 16 874 966 - 16 875 000Net profit and comprehensive incomefor the year

- - - 6 500 000 6 500 000

Dividends paid (note 5) - - - (6 500 000) (6 500 000)

Balance at 31 March 2018 337 500 000 34 16 874 966 - 16 875 000


95


Company Statement of Cash Flows2018 2017

R '000 R '000

Cash flow from operating activitiesDividends received 6 500 000 6 500 000Dividends paid (note 5) (6 500 000) (6 500 000)

Change in cash and cash equivalents for the year - -Cash and cash equivalents at the beginning of the year - -

Cash and cash equivalents at the end of the year - -


96


Notes to the Company Annual Financial Statements2018 2017

R '000 R '000

1. Additional accounting policies

An investment in a subsidiary is accounted for at cost less accumulated impairment in the company's financialstatements. Cost is adjusted to reflect changes in consideration arising from contingent consideration amendments.Cost also includes directly attributable costs of investment.

The company did not acquire or dispose of any material subsidiaries during the current year.

2. Investment in subsidiary

Unlisted investment - At cost less accumulated impairmentMultiChoice South Africa Proprietary Limited 16 875 000 16 875 000

The company has a 100% interest in MultiChoice South Africa (Pty) Ltd, which is incorporated in South Africa, is aninvestment holding company and which has the South African Rand as its functional currency. A register containingthe number of shares and class of shares for this investment is available for inspection at the company's registeredoffice.

3. Investment in joint venture

Unlisted investment - At cost less accumulated impairmentYizani Phuthuma Nathi (RF) Proprietary Limited * *

MultiChoice SA Holding has a 50% interest in Yizani Phuthuma Nathi (RF) Proprietary Limited at a value of R50. Thisamount is a loan payable to Yizani Phuthuma Nathi (RF) Proprietary Limited. The loan bears no interest. No fixedterms of repayment have been agreed. The lenders have agreed to an unconditional rollover of the obligation for atleast twelve months after the reporting date.

4. Share capital and premium

Share capitalAuthorised3 000 000 000 ordinary shares of R0.0001 each 300 300

Issued (fully paid up)337 500 000 ordinary shares of R0.0001 each 34 34

Share premiumShare premium 16 874 966 16 874 966

The directors of the company have unrestricted authority until after the following annual general meeting to allot andissue the unissued ordinary shares in the company, subject to the provisions of the Companies Act.

5. Events after the reporting period

No events have occurred subsequent to 31 March 2018 and up to the date of signing that have required the companyto make further adjustment or disclosure in these annual financial statements.

6. Dividends per share

A dividend of 1925.93 cents (2017: 1925.93 cents) per share has been declared and paid during the current year.

97


Notes to the Company Annual Financial Statements2018 2017

R '000 R '000

7. Taxation

Normal taxationCurrent year - -Reconciliation of taxationTaxation at statutory rate of 28% 1 820 000 1 820 000Adjusted for:Non-taxable income - dividends received (1 820 000) (1 820 000)

Income tax expense per statement of comprehensive income - -

98

Date post:	14-Jun-2020
Category:	Documents
Upload:	others
View:	6 times
Download:	0 times

MULTICHOICE SOUTH AFRICA HOLDINGS PROPRIETARY …€¦ · MULTICHOICE SOUTH AFRICA HOLDINGS...

Documents