Wrap Text
Unaudited Interim Results for the Six Months Ended 30 September 2012
African Media Entertainment Limited
(Incorporated in the Republic of South Africa)
(Registration number 1926/008797/06)
Share code: AME ISIN: ZAE000055802
("AME", "the company" or "the group")
UNAUDITED
INTERIM RESULTS
for the six months ended 30 September 2012
CONSOLIDATED ABRIDGED STATEMENTS OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
six months to six months to year ended
September September 31 March
% 2012 2011 2012
change R'000 R'000 R'000
Revenue (9) 96 274 106 005 206 075
Cost of sales (14) (25 223) (29 208) (54 068)
Gross profit 71 051 76 797 152 007
Operating expenses (49 631) (52 047) (102 020)
Operating profit (13) 21 420 24 750 49 987
Investment income 1 449 (9) 1 241
Finance income 1 450 1 612 2 942
Finance cost (18) (19) (73)
Profits/(Losses) attributable to associates 68 (123) (201)
Net profit before taxation (7) 24 369 26 211 53 896
Taxation (6 690) (7 534) (13 173)
SA normal taxation (6 804) (7 129) (15 766)
Deferred taxation 114 (405) 2 593
Total comprehensive income for the period (5) 17 679 18 677 40 723
Total comprehensive income attributable to:
Non-controlling interest holders 1 947 2 083 4 324
Equity holders of the parent (5) 15 732 16 594 36 399
Earnings per share (cents ) (3) 189,4 195,2 428,8
Headline earnings per share (cents) (3) 189,4 195,2 428,9
Diluted earnings per share (cents) (1) 189,4 191,4 428,8
Diluted headline earnings per share (cents) (1) 189,4 191,4 428,9
Dividends per share (cents)
Weighted average number of shares
in issue ('000) 8 307 8 501 8 488
Diluted average number of shares
in issue ('000) 8 307 8 671 8 488
Headline earnings reconciliation:
Profit attributable to equity holders 15 732 16 594 36 399
Loss on disposal of fixed assets 3
Tax on loss on disposal of asset (1)
Impairment of loans to associate
Headline earnings 15 732 16 594 36 401
CONSOLIDATED ABRIDGED STATEMENTS OF FINANCIAL POSITION
Unaudited Unaudited Audited
September September 31 March
2012 2011 2012
R'000 R'000 R'000
Assets
Non-current assets 88 592 86 467 89 028
Property, plant and equipment 28 494 29 459 29 130
Investments 12 954 12 986 12 883
Goodwill 39 780 39 785 39 780
Deferred taxation 7 364 4 237 7 235
Current assets 127 728 105 129 116 320
Trade receivables 54 775 48 103 56 563
Other receivables 4 303 2 968 2 621
Tax paid in advance 1 356 26
Cash and cash equivalents 67 294 54 058 57 110
Total assets 216 320 191 596 205 348
Equity and liabilities
Total equity 146 972 132 062 134 091
Non-current liabilities 277 333 315
Operating lease accrual 200 121 200
Interest-bearing borrowings 77 212 115
Current liabilities 69 071 59 201 70 942
Trade payables 31 741 31 510 33 531
Other payables 36 479 26 846 34 738
Dividend payable 776 777
Operating lease accrual and interest-bearing borrowings 75 123 375
Taxation 722 1 521
Total equity and liabilities 216 320 191 596 205 348
CONSOLIDATED ABRIDGED STATEMENTS OF CHANGES IN EQUITY
Unaudited Unaudited Audited
six months to six months to year ended
September September 31 March
2012 2011 2012
R'000 R'000 R'000
Issued capital
Balance at beginning of period 8 171 8 539 8 539
Shares repurchased (38) (368)
Balance at end of period 8 171 8 501 8 171
Share premium
Balance at beginning of period 13 742 31 909 31 909
Shares repurchased (1 606) (18 167)
Change in shareholding
Balance at end of period 13 742 30 303 13 742
Retained profit
Balance at beginning of period 105 030 70 237 70 237
Change in shareholding (1 711) (1 606)
Total comprehensive income for period 15 732 16 594 36 399
Dividend
Balance at end of period 120 762 85 120 105 030
Non-distributable reserve
Balance at beginning of period 2 073 2 073
Fair value adjustment on available for sale financial assets 536 (2 073)
Share-based payment expense 517
Balance at end of period 3 126
Non-controlling interests
Balance at beginning of period 7 148 1 218 1 218
Share of dividend (4 798)
Change in shareholding 1 711 1 606
Share of total comprehensive income for period 1 947 2 083 4 324
Balance at end of period 4 297 5 012 7 148
Total capital and reserves 146 972 132 062 134 091
CONSOLIDATED ABRIDGED STATEMENTS OF CASH FLOWS
Unaudited Unaudited Audited
six months to six months to year ended
September September 31 March
2012 2011 2012
R'000 R'000 R'000
Cash generated by operating activities 23 627 25 912 52 807
Net interest received 1 432 1 371 2 869
Taxation paid (9 750) (7 619) (15 483)
(Increase)/decrease in working capital (282) 2 061 1 080
Cash flows from operating activities 15 027 21 725 41 273
Dividends paid
Cash flows from investing activities (511) (12 226) (30 744)
Cash flows from financing activities (4 332) (2 022)
Net increase in cash and cash equivalents 10 184 7 477 10 529
Cash and cash equivalents at beginning of period 57 110 46 581 46 581
Cash and cash equivalents at end of period 67 294 54 058 57 110
SEGMENTAL REPORTING
Unaudited Unaudited Audited
six months to six months to year ended
September September 31 March
2012 2011 2012
R'000 R'000 R'000
Revenue
Radio Broadcasting 83 619 87 079 178 682
Sales houses 12 655 18 926 27 393
Company
Total 96 274 106 005 206 075
Profitability
Radio Broadcasting 19 793 20 465 39 348
Sales houses 6 864 3 306 10 941
Company (5 237) 979 (302)
Total operating profit 21 420 24 750 49 987
Unallocated/eliminated corporate net expense and
inter-company consolidation 68 (123) (201)
Investment income 1 449 (9) 1 241
Interest received 1 450 1 612 2 942
Interest paid (18) (19) (73)
Taxation (6 690) (7 534) (13 173)
Total comprehensive income for period 17 679 18 677 40 723
Assets
Radio Broadcasting 54 724 54 178 55 445
Sales houses 54 133 51 444 49 543
Company 40 169 31 916 43 250
Total 149 026 137 538 148 238
Liabilities
Radio Broadcasting 28 469 18 245 29 670
Sales houses 35 757 36 823 35 871
Company 5 122 4 466 5 716
Total 69 348 59 534 71 257
Capital expenditure
Radio Broadcasting 1 385 1 698 3 023
Sales houses 98 283 608
Company 8 4 053 4 091
Total 1 491 6 034 7 722
Depreciation
Radio Broadcasting 1 582 1 465 2 927
Sales houses 511 488 975
Company 35 32 66
Total 2 128 1 985 3 968
COMMENTARY
CHAIRMAN'S REVIEW
Review of the six-month period to 30 September 2012
The results for the period under review are disappointing when compared to the previous corresponding period, but that
corresponding period was 38% up on the previous period. These results reflect the difficult trading conditions, with a 9%
decrease in revenue to R96,3 million (Sept 2011: R106 million). Comprehensive income decreased by 5% to R17,7 million
(Sept 2011: R18,7 million).
The comprehensive income attributable to equity holders of the parent amounted to R15,7 million (Sept 2011: R16,6 million) with
earnings per share of 189,4 cents (Sept 2011: 195,2 cents). Headline earnings per share decreased by only 1% to 189,4 cents
(Sept 2011: 191,4 cents), mainly as a result of the lower number of shares in issue following the share repurchases.
After paying tax of R9,7 million (Sept 2011: R7,6 million), the group generated R15 million (Sept 2011: R21,7 million) in cash
from its operating activities during the period. The group spent R1,5 million (Sept 2011: R6 million) on capital expenditure and
ended the period with cash resources of R67 million (Sept 2011: R54 million).
Operations
National sales on both the Algoa and OFM platforms were below expectation but the second six months started well and
in line with expectation.
The diversification and expansion programmes of our radio platforms into other local media brands continue to positively
contribute toward the bottom line.
Through innovative sales programmes Algoa FM's local sales have improved compared to the same period last year and their
new media revenues have grown significantly. A successful local sales package programme should result in a more positive
result in the second half of the year.
Direct revenue on OFM remained stable with good growth prospects on the back of new radio products. The Digital Platforms
team grew their development pipeline, while associated digital revenue remained stable. Mahareng Publishing and
Redstar Talent attained profitability, and are currently tracking well against budget.
Algoa FM's listenership remained stable with OFM listenership seeing a decline. Effective cost control remains a focus
of both companies.
Coming off a record performance last year, United Stations experienced tough trading in the first and second quarters.
The team is committed to provide quality opportunities for advertisers that make its properties the logical choice.
RadioHeads has refined its strategy to develop content across radio platforms with content extensions spanning digital
and television platforms. The strategy has been implemented within a strict cost-controlled environment. It is envisioned
that the revised strategy will take a full 12 months to implement, with growth expected to show only in the next fiscal year.
This business has to date performed below expectations.
Declaration of interim dividend no 2
The board has declared an interim dividend (dividend no 2) of 100 cents per ordinary share (gross) for the period ended
30 September 2012. The dividend is subject to the Dividends Withholding Tax ("DWT") that was introduced with effect
from 1 April 2012. In accordance with the provisions of the JSE Listings Requirements, the following additional information is
disclosed:
the dividend has been declared out of current profits available for distribution;
the local Dividend Tax rate is 15%;
the gross dividend amount is 100,0 cents per ordinary share for shareholders exempt from DWT;
Secondary Tax on Companies ("STC") credits available amount to 29,25808 cents per ordinary share;
the net dividend amount is 89,38871 cents per ordinary share for shareholders liable for DWT;
the company has 8 288 308 ordinary shares in issue; and
the company's income tax reference number is 9100/169/71/4.
The following dates are applicable to the dividend:
The last day to trade in order to be eligible for the dividend will be Friday, 7 December 2012.
Shares will trade ex-dividend from Monday, 10 December 2012.
The record date will be Friday, 14 December 2012 and payment will be made on Tuesday, 18 December 2012.
Share certificates may not be dematerialised/rematerialised between Monday, 10 December 2012 and Friday, 14 December 2012,
both days inclusive.
Prospects
Even though the group has faced a challenging six months, especially in the national sales market, the board is cautiously
optimistic that the results for the year to 31 March 2013 will reflect an improvement over those of the previous year.
ACG Molusi
Independent Non-executive Chairman
20 November 2012
These abridged results have been prepared by the financial director in accordance with International Financial Reporting
Standards ("IFRS"), IAS 34 interim financial reporting, AC 500 series, the Companies Act, No. 71 of 2008, as amended, and the Listings Requirements of the
Johannesburg Stock Exchange on a basis consistent with the policies and methods of computation as used in the annual
financial statements for the year ended 31 March 2012.
Michelle Mynhardt
Financial Director
20 November 2012
African Media Entertainment Limited
(Incorporated in the Republic of South Africa) (Registration number 1926/008797/06)
Share code: AME ISIN: ZAE000055802 ("AME", "the company" or "the group")
Registered office
Unit Block A, Oxford Office Park, No. 5, 8th Street, Houghton Estate, Johannesburg, PO Box 3014, Houghton, 2041
Transfer secretaries
Computershare Investor Services (Pty) Limited, 70 Marshall Street, Johannesburg, PO Box 61051, Marshalltown, 2107
Sponsor
Arcay Moela Sponsors (Pty) Limited, 3 Anerley Road, Parktown, Johannesburg, PO Box 62397, Marshalltown, 2107
Directors
ACG Molusi (Chairman)*, AJ Davies, M Mynhardt, MJ Prinsloo*, N Sooka*, W Tshuma*, KL Dube*
*Independent Non-executive
Date: 20/11/2012 09:35:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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