Wrap Text
Unaudited Condensed Financial Results for the 6 months ended 31 December 2013
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 2013
Condensed Group Statement of Comprehensive Income
Unaudited Unaudited Audited
6 months 6 months 12 months
31-Dec-13 31-Dec-12 30-Jun-13
R'000 R'000 R'000
Revenue 13 592 16 241 34 341
(Loss)/Profit before investment income,
fair value adjustments, depreciation,
amortisation, impairments and exchange
gains/(losses) (1 649) 59 2 690
Depreciation and amortisation (298) (688) (1 312)
Investment income 668 687 1 371
Fair value adjustment of other investment and
other financial asset - (14) (85)
Impairment of financial assets - - (10)
Impairment of joint venture investment - - (520)
Foreign exchange gains/(losses) (43) (31) 312
Loss on write-off of tangible assets (6) - (121)
Loss on write-off of intangible assets - - (1 363)
Exchange differences reversed on disposal of
foreign operations - - (676)
Net (loss)/profit before taxation (1 328) 13 286
Taxation (63) (221) (375)
Net loss for the period (1 391) (208) (89)
Total comprehensive loss for the period (1 391) (208) (89)
Reconciliation of headline loss
Net loss for the period (1 391) (208) (89)
Loss on write-off of tangible assets 6 - 121
Loss on write-off of intangible assets - - 1 363
Impairment of joint venture investment - - 520
Exchange differences reversed on disposal of
foreign operations - - 676
Headline (loss)/earnings (1 385) (208) 2 591
Basic and diluted loss per share (cents) (1.31) (0.20) (0.08)
Basic and diluted headline (loss)/earnings per
share (cents) (1.30) (0.20) 2.43
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-13 31-Dec-12 30-Jun-13
Assets R'000 R'000 R'000
Non-current assets
Tangible fixed assets 791 1 389 1 081
Intangible assets - 1 682 -
Investment in joint ventures 13 533 13
Other investment 24 20 24
Deferred taxation 210 333 258
1 038 3 957 1 376
Current assets
Trade and other receivables 3 832 3 267 3 694
Investment in collective investment scheme 18 073 17 081 17 533
Cash and cash equivalents 8 057 8 195 8 314
Income tax paid in advance - 1 006 1 106
29 962 29 549 30 647
Total assets 31 000 33 506 32 023
Equity and liabilities
Capital and reserves
Share capital and premium 32 732 32 732 32 732
Foreign currency translation reserve - (676) -
Accumulated deficit (6 000) (4 728) (4 609)
Ordinary shareholders’ interest 26 732 27 328 28 123
Current liabilities
Trade and other payables 3 325 3 199 3 325
Income tax payable 10 - -
Deferred revenue 933 2 979 575
4 268 6 178 3 900
Total equity and liabilities 31 000 33 506 32 023
Net asset value per share (cents) 25.1 25.6 26.4
Net tangible asset value per share (cents) 25.1 24.1 26.4
Condensed Group Statement of Changes in Equity
Share Share Foreign Accumulated Total
capital premium currency deficit
translation
reserve
R'000 R'000 R'000 R'000 R'000
Balance at 30 June 2012 107 32 625 (676) (4 520) 27 536
Total comprehensive loss for
the period ended 30 June 2013 - - 676 (89) 587
Balance at 30 June 2013 107 32 625 - (4 609) 28 123
Total comprehensive loss for
the period ended 31 December
2013 - - - (1 391) (1 391)
Balance at 31 December 2013 107 32 625 - (6 000) 26 732
Condensed Group Statement of Cash Flow
Unaudited Unaudited Audited
6 months 6 months 12 months
31-Dec-13 31-Dec-12 30-Jun-13
R'000 R'000 R'000
Net cash inflows/(outflows) from operating
activities 291 (2 459) (2 784)
Net cash outflows from investing activities (548) (1 057) (613)
Net cash flows from financing activities - - -
Cash and cash equivalents at end of period 8 057 8 195 8 314
Financial results
Revenue decreased by 16.31% from R16.241m for the comparative 6 month period, to
R13.592m. This decrease was brought about by the termination of the Looklocal
agreement as at end February 2013 and due to lower than expected sales generation
across all Moneyweb platforms.
Moneyweb incurred an operational loss of R1.649m. This loss arose from the decrease
in revenue.
Cash flows from operating activities were a positive R291k due to SARS refunding
Moneyweb R1,1m for the over payment of provisional tax.
Moneyweb’s balance sheet remains strong with high liquidity as can be seen from the
R26.130m cash and investments held. Current assets exceed current liabilities with a
factor of 7.02. The group has remained debt free.
Operating results
Moneyweb continues to attract larger audiences to its online website
www.moneyweb.co.za. Unique users have grown to an average of 300,000 per month with
an average of over 3,000,000 pages being viewed. Moneyweb.co.za has maintained its
position in the top 3 financial news websites in South Africa. Moneyweb’s audience
spend on average over 5 minutes per viewing session reading Moneyweb content with an
average of 3.68 pages being viewed.
Moneyweb Apps (applications) on both tablet and mobile devices have on average 9,500
active users. Moneyweb has grown its social media status with more than 33, 000
twitter followers.
Moneyweb owns the international mining site www.mineweb.com. This site has produced
a solid audience performance with on average 133,000 unique users and 450,000 page
views on a monthly basis despite a lag in the mining sector worldwide.
Moneyweb’s two flagship daily business radio shows known as SAFM Market Update and
RSG Geldsake have continued to grow listenership. RSG Geldsake presented by veteran
broadcaster Andries van Zyl remains the largest business show by audience numbers in
South Africa. Moneyweb’s daily market updates and personal finance features on Lotus
FM remain popular.
Moneyweb’s Ibandla otherwise known as the gathering of the leaders attracts top
business executives to dinners hosted at GIBS. These dinners provide opportunity for
Moneyweb’s members to network and listen to top speakers in South Africa.
Moneyweb has streamlined its operations and is now focussed on obtaining the maximum
return on investment from each one of its media platforms.
Litigation
Moneyweb has launched legal proceedings against Media24 and its News24/Fin24
websites, for an order declaring that in relation to seven Moneyweb articles which
were copied from our website, Media24 infringed Moneyweb’s copyright and competed
unlawfully against Moneyweb. The case places squarely before the courts, the
question of fair dealing in copyright and the issue of content aggregation on the
internet. Moneyweb claims that Fin24 has plagiarised its articles and has
contravened copyright whilst implementing a low cost content aggregation strategy
and piggy-backing on the efforts of Moneyweb, which invests in original journalism.
Media24 has denied the allegations, claiming that copyright does not subsist in the
reporting of news, and that Moneyweb indulges in the same practices as Media24.
Moneyweb is due to file its replying affidavit shortly, after which the matter will
proceed to court, for judicial determination.
Whilst the litigation is costly, Moneyweb considers it vital for the future of its
business to ensure that the internet does not degenerate into a free for all, where
journalists become mere producers of content, and where the value of unique content
and intellectual property, protected by sound copyright principles, are sacrificed
in favour of the expediency of ubiquitous news reporting, as advocated by Media24.
Prospects
Moneyweb will be revising its strategy across all its media platforms. The revision
will focus on sales generation and maximisation of advertising returns per platform.
This will be done to ensure each platform will become profitable. Part of the
strategy will be to revise all sales agreements Moneyweb has in place with third
parties to ensure they still make economic sense.
Moneyweb will continue to invest in top journalistic talent, which will add to the
already very strong editorial office. Moneyweb has some exciting new projects lined
up to leverage its content and provide more opportunities for revenue generation.
The editorial and management team has been bolstered, and Moneyweb’s content
offering will be expanded.
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 2013 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.
Changes to the board
On 31 October 2013, Mr Bruce Sturgeon was appointed as a non-executive director of
the company and Ms Angela Isbister, Ms Sandra Gordon and Mr Veli Mcobothi were
appointed as independent non-executive directors.
On 31 October 2013, Mr Stafford Masie, Mr Trevor Ncube, Mr Piet Greyling and Mr
Terry Moolman resigned as non-executive directors of the company.
On Behalf of the Board
PM Jenkins
Executive Chairman
20 March 2014
Corporate Information
Non executive directors: LW Sipoyo; S Gordon; A Isbister; B Sturgeon;
W van der Merwe; V Mcobothi
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: 20/03/2014 04:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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