Segment Information

The Group’s operations are a single reportable segment.

The Group provides mobile communication services in Kazakhstan.  The Group identifies the segment in accordance with the criteria set in IFRS 8 and based on the way the operations of the Group are regularly reviewed by the chief operating decision maker to analyse performance and allocate resources among business units of the Group.

The chief operating decision-maker (“CODM”) has been determined as the Company’s CEO.  The CODM reviews the Group’s internal reporting in order to assess performance and allocate resources.  Management has determined a single operating segment being mobile communication services based on these internal reports.

Within the segment all business component demonstrates similar economic characteristics and are alike as follows:

  • providing mobile communication services to prepaid subscribers;
  • providing mobile communication services to postpaid and paid-in-advance subscribers.

The chief operating decision-maker assesses the performance of the operating segment based on a measure of Revenue, EBITDA, EBIT, and Profit for the year.  The Group defines EBITDA as Profit before income tax, finance income and costs, depreciation, and amortisation.  The Group defines EBIT as Profit before tax, finance income and finance costs.  The Group’s definition of EBITDA and EBIT may differ from that of other companies.

The accounting policies used for segments are the same as accounting policies applied for these consolidated financial statements as described in Note 2.

The segment information for the year ended 31 December 2012 and

a reconciliation of segment’s measures of profit and loss to profit for the year is provided as follows:

In thousands of Kazakhstani Tenge 2012 2011
Revenue 182,003,503 178,786,235
EBITDA 100,682,679 105,794,130
Depreciation, and amortisation (22,780,745) (22,895,904)
EBIT 77,901,934 82,898,226
Finance income 131,088 725,286
Finance cost (647,126) -
Profit before income tax 77,385,896 83,623,512
Profit for the year 61,828,033 66,858,104

The Group’s revenue for each service is presented in the Note 14. All revenue is attributable to the customers in Kazakhstan. All non-current assets other than financial instruments and deferred tax assets are located in Kazakhstan.