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Unaudited Condensed Financial Results for the Six Months ended 31 December 2016
Moneyweb Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration No: 1998/025067/06)
(JSE code: MNY ISIN code: ZAE000025409)
("Moneyweb" or "the company" or "the group")
UNAUDITED CONDENSED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
Condensed Group Statement of Comprehensive Income
Unaudited Unaudited Audited
6 months 6 months 12 months
31-Dec-16 31-Dec-15 30-Jun-16
R'000 R'000 R'000
Revenue 17 043 14 533 28 304
Loss before investment income, fair value
adjustments, depreciation, amortisation,
impairments and exchange gains (186) (3 541) (6 175)
Depreciation and amortisation (144) (144) (287)
Stanlib income fund 606 585 1 322
Bank interest 35 52 103
Fair value adjustment of investment and Stanlib
income fund - - 11
Foreign exchange gains 3 33 78
Impairment of joint venture investment - - (13)
Net profit/(loss) before taxation 314 (3 015) (4 961)
Taxation 28 14 38
Net profit/(loss) for the period 342 (3 001) (4 923)
Other comprehensive income - - -
Total comprehensive profit/(loss) for the
period 342 (3 001) (4 923)
Basic and diluted earnings/(loss) per share
(cents) 0.32 (2.81) (4.62)
Weighted average number of shares in issue
(000’s) 106 575 106 575 106 575
Reconciliation of headline profit/(loss)
Net profit/(loss) for the period 342 (3 001) (4 923)
Impairment of joint venture investment - - 13
Headline earnings/(loss) 342 (3 001) (4 910)
Basic and diluted headline earnings/(loss) per
share (cents) 0.32 (2.81) (4.61)
Weighted average number of shares in issue
(000’s) 106 575 106 575 106 575
Condensed Group Statement of Financial Position
Unaudited Unaudited Audited
31-Dec-16 31-Dec-15 30-Jun-16
Assets R'000 R'000 R'000
Non-current assets
Tangible fixed assets 417 536 513
Investment in joint venture - 13 -
Other investment 34 34 34
Deferred taxation 303 252 275
Stanlib income fund 943 1 082 927
1 697 1 917 1 749
Current assets
Trade and other receivables 6 078 3 353 4 166
Stanlib income fund 11 664 14 171 13 075
Cash and cash equivalents 1 919 3 409 3 094
19 661 20 933 20 335
Total assets 21 358 22 850 22 084
Equity and liabilities
Capital and reserves
Share capital and premium 32 732 32 732 32 732
Accumulated loss (14 843) (13 263) (15 185)
Ordinary shareholders’ interest 17 889 19 469 17 547
Current liabilities
Trade and other payables 3 191 2 930 3 754
Taxation 10 10 10
Deferred revenue 268 441 773
3 469 3 381 4 537
Total equity and liabilities 21 358 22 850 22 084
Net asset value per share (cents) 16.8 18.3 16.46
Net tangible asset value per share (cents) 16.8 18.3 16.46
Closing number of shares in issue (net of
treasury) (000’s) 106 575 106 575 106 575
Condensed Group Statement of Changes in Equity
Share Share Accumulated Total
capital premium deficit
R'000 R'000 R'000 R'000
Balance at 30 June 2015 107 32 625 (10 262) 22 470
Total comprehensive loss for
the year ended 30 June 2016 - - (4 923) (4 923)
Balance at 30 June 2016 107 32 625 (15 185) 17 547
Total comprehensive profit
for the period ended 31
December 2016 - - 342 342
Balance at 31 December 2016 107 32 625 (14 843) 17 889
Condensed Group Statement of Cash Flow
Unaudited Unaudited Audited
6 months 6 months 12 months
31-Dec-16 31-Dec-15 30-Jun-16
R'000 R'000 R'000
Net cash outflows from operating activities (1 161) (227) (7 458)
Net cash (outflows)/inflows from investing
activities (48) (60) 6 820
Cash and cash equivalents at end of period 1 919 3 409 3 094
Financial results
Moneyweb is pleased to announce a return to profitability. This has mainly been
achieved by a 17.15% (R2.510m) increase in revenue from the previous 6-month period.
As mentioned in previous SENS commentary Moneyweb invested in diversifying its
revenue streams and this has now started to pay dividend. Moneyweb invested in
growing its radio properties by taking on additional airtime on RSG and Radio 2000.
A headline sponsor for the RSG Geldsake programme was obtained which assisted in
tremendous growth in radio revenue. There has been an 86.16% increase in radio
revenue from the previous 6-month period. There has also been growth in Moneyweb’s
revenue from events held and from the video production division during this
reporting period. Digital revenues have however declined on the Mineweb website due
to the global mining recession. There have also been declines in revenue from The
Citizen for content production and in our digital newspaper Moneyweb Today. Overall
Moneyweb has started to see increased revenue in its areas of focus.
We have managed to cut overall business expenses by just over 6% (nearly R1m) when
compared to the previous 6-month period. This was done by making use of less
professional services for projects that were not providing the required returns.
There was also less spent on freelance journalism. With the increased revenue and
decreased costs Moneyweb has made a 6 month profit before tax of R314k.
Cash flows have started to steady as revenue has increased. Moneyweb remains debt
free and has liquid cash reserves of R13.583m. There has been an increase in the
debtor’s balance arising from the increase in revenue.
Operating results
The company generated revenue of R17.043m and a net profit of R342k over the 6-month
period.
Moneyweb has started to reap the benefits from investments made in various areas of
its business. The significant changes were brought about by increased revenue in
video production, events and increased air-time on the SABC radio stations. Digital
revenue declined slightly due to less advertising in the mining sector and in the
investor relations sector. Overall we have increased revenue and this bodes well for
the next 6 months. With the increased pressures on digital advertising prices it is
pleasing to note that clients are very satisfied with Moneyweb’s cross-media
solutions. Moneyweb is able to offer clients a wide array of choices to market
themselves which include, radio, video, print, events, digital and social media.
Moneyweb has decreased its business costs by applying strict reviews to various
products which were not profitable. This will continue going forward and where
divisions or business products are not successful they will be stopped. The media
landscape continues to change on a daily basis and competition is rife in this
industry. Moneyweb is a niche business and investment content provider which is able
to offer clients top-end audiences within South Africa. This will continue and
Moneyweb will grow its areas of business within the media industry.
Prospects
Moneyweb is focussed on continuing to grow its revenues across all platforms. There
will be further investment in our video production unit from a capital expenditure
perspective. This will be to produce top quality video productions to be broadcast
on television. The aim is to not only obtain traditional advertising spend but also
to obtain production budgets used for television.
Moneyweb has renewed its SABC contract for another 3 years. There will thus be
further opportunities to extend Moneyweb’s airtime on commercial and public SABC
stations.
Moneyweb will continue to put high-end events together for opinion leaders to
network. This is a great way for brands to distinguish themselves from the
competition.
There will be a focus on obtaining advertising spend for Moneyweb’s and South
Africa’s flagship investment magazine known as The Moneyweb Investor.
Moneyweb’s online shop at www.moneyweb.co.za with its premium subscription product
known as Moneyweb Insider will continue to be marketed aggressively to increase
annuity based revenue.
Cautionary
Shareholders are advised that the discussions referred to in the joint cautionary
announcement dated 2 December 2016 are still continuing.
Shareholders are accordingly urged to continue to exercise caution in dealing in
their shares until such time as further announcements in this regard are made.
Dividend policy
No dividend has been declared for the interim period.
Post balance sheet events
There are no material events subsequent to the end of the period that require
further disclosure.
Basis of preparation
Statement of compliance
The interim condensed financial statements have been prepared in accordance with
the measurement and recognition requirements of International Financial
Reporting Standards (IFRS), the principles of IAS 34: Interim Financial Reporting,
the AC500 standards as issued by the Accounting Practices Board or its successor
for Interim Reporting and the JSE Listings Requirements and South African Companies
Act.
The accounting policies and methods of computation adopted in the interim condensed
financial statements are consistent with those applied in the annual financial
statements for the period ended 30 June 2016 and are in terms of IFRS.
The unaudited interim results have been prepared by the financial director of
Moneyweb, Mr P Meyer CA (SA).
The interim consolidated financial statements have not been reviewed by the
company's auditors.
Basis of measurement
The interim condensed financial statements have been prepared on the historical
cost basis with the exception of certain financial instruments that are stated at
fair value.
Going concern
The interim condensed financial statements have been prepared on the going-concern
basis since the directors have every reason to believe that the company has
adequate resources in place to continue in operation for the foreseeable future.
On Behalf of the Board
PM Jenkins
Executive Chairman
10 February 2017
Corporate Information
Non-executive directors: LW Sipoyo*; SJ Gordon*; AJ Isbister; BN Sturgeon;
WP van der Merwe*; VW Mcobothi*
*Independent non-executive director
Executive directors: PM Jenkins (Chairman); MJ Ashton; P Meyer
Registered address: Number 5, 8th Street, Houghton Estates, 2198
Postal address: PO Box 8, Melrose Arch, 2076
Company secretary: N Sooka
Telephone: (011) 344 8600
Transfer secretaries: Computershare Investor Services Proprietary Limited
Auditors: BDO South Africa Incorporated
Designated Advisor: Arbor Capital Sponsors Proprietary Limited
Date: 10/02/2017 11:11:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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