Wrap Text
Unaudited Results for Six months ended 30 September 2013
AFRICAN MEDIA ENTERTAINMENT LIMITED
Incorporated in the Republic of South Africa
Registration number 1926/008797/06
JSE Code: AME ISIN: ZAE000055802
("AME", "the company" or "the group")
UNAUDITED RESULTS
for the six months ended 30 September 2013
COMMENTARY
Chairman's review of the six-month period to 30 September 2013
The good start to the new financial year has continued into the second quarter and enabled
our companies to increase revenue by 11% to R106,5 million (Sept 2012: R96,3 million).
Comprehensive income increased by 16% to R20,5 million (Sept 2012: R17,7 million).
The comprehensive income attributable to equity holders of the parent amounted to
R17,8 million (Sept 2012: R15,7 million) with earnings per share of 217,5 cents (Sept 2012:
189,4 cents). Headline earnings per share were 217 cents (Sept 2012: 189,4 cents).
After paying tax of R9,4 million (Sept 2012: R9,7 million), the group generated R23,2 million
(Sept 2012: R15 million) in cash from its operating activities during the period. The group
incurred R2 million (Sept 2012: R1,5 million) of capital expenditure and paid R0,8 million
to repurchase 10 943 of its own shares. During the period the group paid out dividends to the
value of R19,1 million, R2,8 million to non-controlling interest holders and R16,3 million
to equity holders of the parent relating to the gross 200 cents per share dividend paid in
July 2013 (Sept 2012: 100 cents gross). The group ended with cash resources of R81,2 million
(Sept 2012: R67,3 million).
Operations
The group continues to grow through the diversification and expansion programmes of our
radio platforms into other local media brands. Tight cost control and innovative media solutions
contribute to the group's continued profitability.
Profitability on Algoa FM has improved on last year, due to excellent sales efforts by both the
local and national sales teams. Listenership decreased year on year largely due to a statistical
adjustment as a result of the new census data used during the latest RAMS (Radio Audience
Measurement). Algoa FM continues to make positive in-roads into the Southern Cape broadcast
area and two Algoa FM presenters won top awards at the annual MTN SA Radio Awards. This
was for the Best Breakfast Presenter and the Best Music Show in commercial radio.
Trading conditions improved favourably for Central Media Group, with all business units
showing marked improvement on the previous year. OFM's audience figures were largely
stable during this period, and advertising support from both the local and national markets
continued to show growth above expectation. Marketing initiatives were also rewarded
with a Grand Prix Loerie and a silver Pendoring award. A new satellite studio in the Vaal has
improved visibility, audience and revenue from that area. Mahareng continued to grow market
share for its Bloemfontein Courant (free sheet) against strong competition and as a business,
outperformed the benchmarks set. Significant custom publishing business was also secured in
this period, and digital revenues continue to grow. RedStar was able to secure new business
from national companies and was also able to secure major sponsorships for sports events.
Digital Platforms had a strong first half, showing marked improvement in web development
revenue, whilst keeping expansion costs under control.
RadioHeads has developed a number of premium radio properties available across a spectrum
of radio stations. A significant achievement was the outcome of independent research
showing that Iketsetse-Zenzele, the RadioHeads property flighted on several African Language
Services and sponsored by one of the leading banks, has significantly exceeded brand and
product recall norms. These results will see greater traction for RadioHeads properties as more
clients utilise this innovative radio solution.
The excellent revenue results achieved by specialist sales house United Stations in the first
quarter, were exceeded in the second quarter. The greater than expected advertising spend
was driven by their core client base and was attributable to their station portfolio holding
leading market positions and uniquely serving the communities targeted by these advertisers.
The remaining half year is being approached with caution, as they expect tougher market
conditions ahead.
Declaration of interim dividend no 4
The board has declared an interim dividend (dividend no 4) of 100,00 cents per ordinary share
(gross) for the period ended 30 September 2013.
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 100,00 cents per ordinary share for shareholders exempt
from DWT;
- the net dividend amount is 85,00 cents per share for shareholders liable for DWT;
- the company has 8 277 366 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 date to trade in order to be eligible for the dividend will be Friday, 6 December 2013.
Shares will trade ex-dividend from Monday, 9 December 2013.
The record date will be Friday, 13 December 2013 and payment will be made on Tuesday,
17 December 2013.
Share certificates may not be dematerialised/rematerialsed between Monday,
9 December 2013 and Friday, 13 December 2013, both days inclusive.
Prospects
The board is optimistic that the improved results achieved by the group in the first half of the
year will be maintained for the financial year.
ACG Molusi
Independent Non-executive Chairman
22 November 2013
Johannesburg
These condensed results have been prepared by the financial director in accordance with
International Financial Reporting Standards ("IFRS"), the Companies Act, no 71 of 2008, as
amended, the Listings Requirements of the Johannesburg Stock Exchange and the SAICA
Financial Reporting Guides as issued by the Accounting Practices Committee. Except for the
new standards adopted as set out below, all accounting policies applied by the group in the
preparation of these condensed consolidated interim financial results are consistent with
those applied by the group in its consolidated financial statements as at and for the year ended
31 March 2013. There was no material impact on the interim financial results identified based
on management's assessment of these standards.
The group has adopted the following new standards:
IFRS 10 – Consolidated Financial Statements
IFRS 11 – Joint Arrangements
IFRS 12 – Disclosure of Interest in other Entities.
Michelle Mynhardt
Financial Director
22 November 2013
AFRICAN MEDIA ENTERTAINMENT LIMITED
Incorporated in the Republic of South Africa
Registration number 1926/008797/06
JSE Code: AME ISIN: ZAE000055802
("AME" "the company" or "the group")
REGISTERED OFFICE
Block A, Oxford Office Park
No. 5, 8th Street, Houghton Estate, Johannesburg, 2198
PO Box 3014, Houghton, 2041
TRANSFER SECRETARIES
Computershare Investor Services (Pty) Limited
Registration number 2004/003647/07
Ground Floor, 70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107
Telephone: +27 11 370 5000
Telefax: +27 11 688 5238
SPONSOR
Arcay Moela Sponsors (Pty) Limited
Registration number 2006/033725/07
Ground Floor, One Building, Woodmead North Office Park
54 Maxwell Drive, Woodmead, 2191
PO Box 62397, Marshalltown, 2107
DIRECTORS
ACG Molusi (Chairman)*, KL Dube*, MJ Prinsloo*, N Sooka*
W Tshuma*, AJ Davies, M Mynhardt
*Independent Non-executive
WWW.AME.CO.ZA
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
six months six months year
to to ended
September September 31 March
% 2013 2012 2013
change R'000 R'000 R'000
Revenue 11 106 500 96 274 216 688
Cost of sales 8 (27 341) (25 223) (56 065)
Gross profit 79 159 71 051 160 623
Operating expenses (53 579) (49 631) (107 249)
Operating profit 19 25 580 21 420 53 374
Investment income 1 000 1 449 1 930
Finance income 2 019 1 450 3 070
Finance cost (9) (18) (73)
Profits/(losses) attributable
to associates 101 68 (27)
Net profit before taxation 18 28 691 24 369 58 274
Taxation (8 171) (6 690) (16 670)
SA normal taxation (8 805) (6 804) (17 910)
Deferred taxation 634 114 1 240
Total comprehensive income
for the period 16 20 520 17 679 41 604
Total comprehensive income
attributable to:
Non-controlling interest holders 2 755 1 947 3 710
Equity holders of the parent 13 17 765 15 732 37 894
Earnings per share (cents) 15 217,5 189,4 463,8
Headline earnings per share (cents) 15 217,5 189,4 463,9
Dividends per share (cents) 100,0 100,0 300,0
Weighted average number of shares
in issue ('000) 8 169 8 307 8 171
Diluted average number of shares
in issue ('000) 8 169 8 307 8 171
Headline earnings reconciliation:
Profit attributable to equity holders 17 765 15 732 37 894
Loss on disposal of fixed assets – – 9
Tax on loss on disposal of asset – – (3)
Headline earnings 17 765 15 732 37 900
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION
Unaudited Unaudited Audited
September September 31 March
2013 2012 2013
R'000 R'000 R'000
Assets
Non-current assets 95 893 88 592 95 314
Property, plant and equipment 34 995 28 494 34 881
Investments 12 009 12 954 12 178
Goodwill 39 780 39 780 39 780
Deferred taxation 9 109 7 364 8 475
Current assets 143 707 127 728 146 552
Trade receivables 60 602 54 775 64 230
Other receivables 695 4 303 2 454
Dividends receivable 1 000 – 950
Tax paid in advance 243 1 356 134
Cash and cash equivalents 81 167 67 294 78 784
Total assets 239 600 216 320 241 866
Equity and liabilities
Total equity 161 363 146 972 161 007
Non-current liabilities 41 277 41
Operating lease accrual – 200 –
Interest-bearing borrowings 41 77 41
Current liabilities 78 196 69 071 80 818
Trade payables 41 888 31 741 37 215
Other payables 34 853 36 479 41 828
Dividend payable 1 173 776 915
Operating lease accrual and
interest-bearing borrowings 38 75 136
Taxation 244 – 724
Total equity and liabilities 239 600 216 320 241 866
CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN EQUITY
Unaudited Unaudited Audited
six months six months year
to to ended
September September 31 March
2013 2012 2013
R'000 R'000 R'000
Issued capital
Balance at beginning of period 8 171 8 171 8 171
Shares repurchased (11) – –
Balance at end of period 8 160 8 171 8 171
Share premium
Balance at beginning of period 13 742 13 742 13 742
Shares repurchased (821) – –
Balance at end of the period 12 921 13 742 13 742
Retained profit
Balance at beginning of period 134 663 105 030 105 030
Total comprehensive income for the period 17 765 15 732 37 894
Dividend (16 577) – (8 261)
Balance at end of period 135 851 120 762 134 663
Non-controlling interests
Balance at beginning of period 4 431 7 148 7 148
Share of dividend (2 755) (4 798) (6 427)
Share of total comprehensive income
for the period 2 755 1 947 3 710
Balance at end of period 4 431 4 297 4 431
Total capital and reserves 161 363 146 972 161 007
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
Unaudited Unaudited Audited
six months six months year
to to ended
September September 31 March
2013 2012 2013
R'000 R'000 R'000
Cash generated by operating activities 27 505 23 627 57 707
Net interest received 2 010 1 432 2 997
Taxation paid (9 393) (9 750) (18 815)
Decrease/(increase) in working capital 3 047 (282) 2 690
Cash flows from operating activities 23 169 15 027 44 579
Cash flows from investing activities (1 713) (511) (8 356)
Cash flows from financing activities (19 073) (4 332) (14 549)
Net increase in cash and cash equivalents 2 383 10 184 21 674
Cash and cash equivalents at beginning
of period 78 784 57 110 57 110
Cash and cash equivalents at end of period 81 167 67 294 78 784
SEGMENTAL REPORTING
Unaudited Unaudited Audited
six months six months year
to to ended
September September 31 March
2013 2012 2013
R'000 R'000 R'000
Revenue
Radio Broadcasting 91 584 83 619 187 551
Sales houses 14 916 12 655 29 137
Company – – –
Total 106 500 96 274 216 688
Profitability
Radio Broadcasting 22 462 19 793 43 787
Sales houses 4 248 6 864 15 749
Company (1 130) (5 237) (6 162)
Total operating profit 25 580 21 420 53 374
Unallocated/eliminated corporate net
expense and inter-company consolidation 101 68 (27)
Investment income 1 000 1 449 1 930
Interest received 2 019 1 450 3 070
Interest paid (9) (18) (73)
Taxation (8 171) (6 690) (16 670)
Total comprehensive income for the period 20 520 17 679 41 604
Assets
Radio Broadcasting 64 518 54 724 62 665
Sales houses 57 193 54 133 54 041
Company 36 722 40 169 46 376
Total 158 433 149 026 163 082
Liabilities
Radio Broadcasting 35 280 28 469 32 494
Sales houses 35 133 35 757 42 193
Company 7 824 5 122 6 172
Total 78 237 69 348 80 859
Capital expenditure
Radio Broadcasting 1 731 1 385 9 491
Sales houses 316 98 327
Company – 8 15
Total 2 047 1 491 9 833
Depreciation
Radio Broadcasting 1 448 1 582 3 018
Sales houses 507 511 990
Company 31 35 66
Total 1 986 2 128 4 074
Date: 22/11/2013 04:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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