Wrap Text
Unaudited Condensed Financial Results for the Six Months Ended 31 December 2012
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 2012
Condensed Group Statement of Comprehensive Income
Notes Unaudited Unaudited Audited
6 months 6 months 15 months
31-Dec-12 30-Sep-11 30-Jun-12
R'000 R'000 R'000
Revenue 16 241 15 987 44 851
Profit / (Loss) before investment income,
fair value adjustments, depreciation,
amortisation, impairments and exchange
gains/(losses) 59 (2 858) (4 413)
Depreciation and amortisation (688) (719) (1 886)
Investment income 687 686 1 871
Finance costs - - (78)
Fair value adjustment of other
investment and other financial asset (14) 69 191
Impairment of financial assets - - (117)
Foreign exchange gains /(losses) (31) (81) 31
Impairment of joint venture investment - - (355)
Net Profit/(loss)before taxation 13 (2 903) (4 756)
Taxation (221) - 181
Profit from joint ventures - 211 496
Net loss for the period (208) (2 692) (4 079)
Other comprehensive income
Exchange differences on translating
foreign operations - 166 235
Total comprehensive loss for the period (208) (2 526) (3 844)
Reconciliation of headline loss
Net loss for the period (208) (2 692) (4 079)
Loss on write-off of intangible asset - - -
Impairment of joint venture investment - - 355
Headline loss (208) (2 692) (3 724)
Basic and diluted loss per share (cents) (0.20) (2.52) (3.83)
Basic and diluted headline loss per share (cents) (0.20) (2.52) (3.49)
Number of shares in issue (000's)
- issued closing (net of treasury) 106 575 106 575 106 575
- weighted average 106 575 106 575 106 575
Condensed Group Statement of Financial Position
Unaudited Unaudited Audited
31-Dec-12 30-Sep-11 30-Jun-12
Assets R'000 R'000 R'000
Non-current assets
Tangible assets 1 389 1 617 1 263
Intangible assets 1 682 2 543 2 001
Investment in joint ventures 533 1 045 533
Other investment 20 15 20
Deferred taxation 333 136 554
3 957 5 356 4 371
Current assets
Trade and other receivables 3 267 12 479 4 096
Other financial asset 17 081 15 614 16 533
Cash and cash equivalents 8 195 8 268 11 711
Income tax paid in advance 1 006 1 216 1 006
29 549 37 577 33 346
Total assets 33 506 42 933 37 717
Equity and liabilities
Capital and reserves
Share capital and premium 32 732 32 732 32 732
Foreign currency translation reserve (676) (745) (676)
Accumulated profit / (loss) (4 728) (3 133) (4 520)
Ordinary shareholders’ interest 27 328 28 854 27 536
Non-current liabilities
Current liabilities
Trade and other payables 3 199 6 006 4 956
Deferred revenue 2 979 8 073 5 225
6 178 14 079 10 181
Total equity and liabilities 33 506 42 933 37 717
Net asset value per share (cents) 25.6 27.1 25.8
Net tangible asset value per share
(cents) 24.1 24.7 24.0
Condensed Group Statement of Changes in Equity
Share Share Foreign Accumulated Total
capital premium currency profit
translation
reserve
R'000 R'000 R'000 R'000 R'000
Balance at 1 April 2011 107 32 625 (911) (441) 31 380
Total comprehensive income for
the period ended 30 June 2012 - - 235 (4 079) (3 844)
Ordinary dividend paid - - - - -
Ordinary shares issued - - - - -
Balance at 30 June 2012 107 32 625 (676) (4 520) 27 536
Total comprehensive income for
the period ended 31 December
2012 - - - (208) (208)
Balance at 31 December 2012 107 32 625 (676) (4 728) 27 328
Condensed Group Statement of Cash Flow
Unaudited Unaudited Audited
6 months 6 months 15 months
31-Dec-12 30-Sep-11 30-Jun-12
R'000 R'000 R'000
Cash flows from operating activities
Cash (utilised) / generated by
1
operations (2 218) 473 (3 936)
Movements in working capital (928) (1 384) 5 949
Cash generated /(utilised) by operating
activities (3 146) (911) 2 013
Investment income 687 686 1 871
Finance costs - - (78)
Taxation paid - (393) (418)
Dividend paid - - -
Net cash inflows / (outflows) from
operating activities (2 459) (618) 3 388
Cash flows from investing activities
Acquisition of tangible assets (494) (82) (355)
Investment in other financial asset (563) (530) (1 332)
Decrease in investment in joint ventures - 289 801
Repayment of loan receivable - - -
Net cash outflows from investing
activities (1 057) (323) (886)
Cash flows from financing activities
Ordinary shares issued - - -
Net cash inflows from financing
- - -
activities
Net movement in cash and cash
(3 516) (941) 2 502
equivalents for the period
Cash and cash equivalents at beginning of
11 711 9 209 9 209
period
Cash and cash equivalents at end of period 8 195 8 268 11 711
Notes to the Condensed Financial Results
1. Cash generated by operations
(Loss)/ profit before investment income,
fair value adjustments, depreciation,
amortization, impairments and exchange
gains / (losses) 59 (2 858) (4 413)
Adjustments:
Profit from joint ventures - 211 496
Impairment of financial assets - - (117)
Impairment of joint venture investment - - (355)
Foreign exchange gains /(losses) (31) (81) 31
Increase / (decrease) in deferred revenue (2 246) 3 035 187
Decrease in foreign currency translation
reserve - 166 235
(2 218) 473 (3 936)
Change of year end
The company has changed its year end from 31 March to 30 June to accord with its
holding company, Caxton & CTP Publishers & Printers Limited. These interim results
are for the 6 months ended 31 December 2012. The comparative 6 month period is thus
for the 6 months ended 30 September 2011.
Financial results
Revenue increased by 1.6% from R15.987m for the comparative 6 month period, to
R16.241m. Nevertheless, this was 6.31% below the target for the period ending 31
December 2012. The shortfall was due to the disruption caused by a transition from
an external advertising sales agency to the SABC sales team. Sales are expected to
start picking up in the second half of the financial year. Moneyweb is in the
process of further strengthening its internal advertising sales resources to enable
Moneyweb to capitalise on its strong brand.
Moneyweb has continued to cut costs and this is reflected in the R59k EBITDA profit
made, notwithstanding revenues being less than budgeted. Expenses were 4.2% lower
than budget and Moneyweb is continuing to look at cutting out unnecessary
expenditure.
Moneyweb’s balance sheet remains strong with high liquidity as can be seen from the
R25.276m cash and investments held. Current assets exceed current liabilities with
a factor of 4.78. The group has remained debt free.
Operating results
Moneyweb has continued to build its community on its various platforms. There has
been significant growth in online user base of the moneyweb.co.za content. This is
evidenced by the growth in unique visits and page impressions in the last six
months. As per Google analytics, moneyweb.co.za had on average for the 6 months
ending December, 189 358 unique users who viewed 2 362 186 pages between them.
Moneyweb also experienced one of the lowest bounce rates in the industry, ranging
between 6 and 8%, where users spent over 4 minutes on average every time they
visited the website.
Moneyweb has various Apps (applications) on both tablet and smart phone platforms.
These APPS consist of Moneyweb Now for iPad, Moneyweb Talk for iOS, Moneyweb Talk
for Android, Moneyweb Talk for Blackberry and Mineweb for iPad. Total downloads of
these APPS as at end December 2012 were 22 192, with Moneyweb Now for iPad leading
the way with 8 184 downloads.
Moneyweb’s social media platforms are consistently growing in numbers and
moneyweb.co.za has nearly reached 20 000 twitter followers and +-2 200 facebook
followers who are kept up-to-date with the latest breaking business and financial
news.
Mineweb.com has maintained its appeal to the international mining community and had
on average, 160 691 unique visitors who viewed on average 458 863 pages between
them for the six months ending December 2012. Mineweb.com has added a jobs portal
to its offering, whereby international mining jobs are sold to potential
recruiters.
Moneyweb currently has business and financial programmes on RSG, SAFM and Lotus FM.
Moneyweb has invested in upgrades to both its studios situated at Melrose Arch to
provide improved quality to these shows. The SABC and Moneyweb are committed to
providing premium business and financial content to its listeners and to being the
leading business shows in South Africa.
Moneyweb has performed well operationally across its business assets and is looking
to further grow relationships, revenue and its current offerings.
Mr A Hogg resigned both as CEO and non-executive director. Mr P Jenkins is
currently the executive chairman.
Prospects
Moneyweb will look to further strengthen its relationship with the SABC and search
for opportunities to provide premium business and financial content to various SABC
radio stations. Moneyweb has as its goal, the provision of up to date business and
financial content that speaks to audiences from all walks of life. Moneyweb aims to
enhance its current show offerings with in-depth, relevant, current content to grow
audiences and provide the public with insight into South Africa’s business and
financial world.
Moneyweb is revising its strategy on Apps as it has not obtained the revenues
anticipated. This revision will involve devising new ways of monetising the Apps
and at the same time providing value to clients and users.
Moneyweb remains focussed on providing excellent independent business and financial
content to its community on its various platforms. There will be further research
into monetising content and establishing strategic partnerships for future growth.
Dividend policy
No dividend has been declared for the interim period.
Post balance sheet events
Caxton & CTP Publishers & Printers Limited has decided to exercise its right under
the break clause in the Looklocal agreement and will pay Moneyweb a net
termination fee of R3.256 million as at end February 2013, calculated in
accordance with the contract.
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 2012 and are in terms of IFRS.
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.
Changes to the board
On 01 July 2012 Mr P Meyer was appointed financial director, Mr N Sooka as the
company secretary and Mr S Masie as an independent non-executive director. On 01
July 2012 Mr T Ncube, an independent non-executive director, was appointed as
chairman to the Social and Ethics Committee and Mr W van der Merwe an independent
non-executive director and Mr L Sipoyo a non-executive director as members to the
Social and Ethics Committee.
On 25 October 2012 Mr A Hogg resigned as CEO and Mr P Jenkins took on the role of
executive chairman. On 13 November Mr A Hogg resigned his position as a non-
executive director.
On Behalf of the Board
PM Jenkins
Executive Chairman
01 March 2013
Corporate Information
Non executive directors: LW Sipoyo; T Ncube; TD Moolman; PG Greyling;
W van der Merwe; S Masie
Executive directors: PM Jenkins (Chairman); P Meyer
Registered address: 20 The Piazza, Second Floor, Melrose Arch, 2196
Postal address: PO Box 8, Melrose Arch, 2076
Company secretary: N Sooka
Telephone: (011) 344 8600
Facsimile: (011) 344 8601
Transfer secretaries: Computershare Investor Services Proprietary
Limited
Auditors: BDO South Africa Incorporated
Designated Adviser: Arcay Moela Sponsors Proprietary Limited
Date: 04/03/2013 09:21:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
