Wrap Text
Audited Condensed Results for the year ended 30 June 2014
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")
AUDITED CONDENSED RESULTS FOR THE YEAR ENDED
30 JUNE 2014
Condensed Group Statement of Comprehensive Income
Audited Audited
30-Jun-14 30-Jun-13
R'000 R'000
Revenue 23 494 34 341
(Loss) / profit before investment income,
fair value adjustments, depreciation,
amortisation, impairments and exchange
gains/(losses) (3 371) 2 690
Depreciation and amortisation (578) (1 312)
Other financial asset interest 1 115 1 089
Bank interest 253 282
Fair value adjustment of other
investment and other financial asset 39 (85)
Impairment of financial assets - (10)
Impairment of joint venture investment - (520)
Foreign exchange gains 18 312
Loss on write-off of tangible assets (5) (121)
Loss on write-off of intangible assets - (1 363)
Exchange differences reversed on
disposal of foreign operations - (676)
Net (loss) / profit before taxation (2 529) 286
Taxation (107) (375)
Profit from joint ventures - -
Net loss for the period (2 636) (89)
Other comprehensive income - -
Total comprehensive loss for the period (2 636) (89)
Basic and diluted loss per share (cents) (2.47) (0.08)
Weighted average number of shares in
issue (000's) 106 575 106 575
Reconciliation of headline loss
Net loss for the period (2 636) (89)
Loss on write-off of tangible assets 5 121
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 (2 631) 2 591
Basic and diluted headline (loss) / earnings per
share (cents) (2.47) 2.43
Weighted average number of shares in
issue (000's) 106 575 106 575
Condensed Group Statement of Financial Position
Audited Audited
30-Jun-14 30-Jun-13
Assets R'000 R'000
Non-current assets
Tangible fixed assets 545 1 081
Investment in joint ventures 13 13
Other investment 32 24
Deferred taxation 165 258
755 1 376
Current assets
Trade and other receivables 3 622 3 694
Other financial asset 18 679 17 533
Cash and cash equivalents 5 749 8 314
Income tax paid in advance - 1 106
28 050 30 647
Total assets 28 805 32 023
Equity and liabilities
Capital and reserves
Share capital and premium 32 732 32 732
Accumulated loss (7 245) (4 609)
Ordinary shareholders’ interest 25 487 28 123
Current liabilities
Trade and other payables 2 502 3 325
Deferred revenue 806 575
Taxation 10 -
3 318 3 900
Total equity and liabilities 28 805 32 023
Net asset value per share (cents) 23.9 26.4
Net tangible asset value per share (cents) 23.9 26.4
Closing number of shares in issue (net of
treasury) (000’s) 106 575 106 575
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 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 30 June 2014 - - - (2 636) (2 636)
Balance at 30 June 2014 107 32 625 - (7 245) 25 487
Condensed Group Statement of Cash Flow
Audited Audited
30-Jun-14 30-Jun-13
R'000 R'000
Net cash outflows from operating activities (2 631) (3 086)
Net cash outflows from investing activities (47) (613)
Effect of exchange rate movement on cash
113 302
balances
Cash and cash equivalents at beginning
8 314 11 711
of period
Cash and cash equivalents at end of period 5 749 8 314
Executive chairman’s overview
The past financial year has seen the media landscape continue to morph into a
hybrid of traditional and digital media, challenging each other for audiences.
Moneyweb understands both mediums well and has managed to deliver audience success
through its unique brand of investigative, educational and topical content.
Moneyweb has launched its new logo and this has provided a breath of fresh air
throughout the company. Board members Sandra Gordon, Angela Isbister, Bruce
Sturgeon and Veli Mcobothi joined Moneyweb from 01 November 2013. They each bring a
wealth of knowledge and experience and Moneyweb will be looking to leverage off
this. There is a new energy in the offices and a feeling that the company has
turned a corner. There is stability in all departments of Moneyweb and a sense of
urgency among senior management to unlock the growth potential in the company.
Moneyweb has continued to shine in its editorial department and has produced
exceptional talent with Ryk van Niekerk (managing editor) winning the editor of the
year award by the National Press Council. At the very prestigious Sanlam Financial
Journalist Awards, Hilton Tarrant (former anchor of the Market update show on SAFM)
was awarded the Radio Financial Journalist of the Year, former Moneyweb journalist
Malcolm Rees received two awards for Online Financial Journalist of the Year, and a
category award for Markets and Ingé Lamprecht was a well-deserved finalist in the
category: Online Financial Journalist of the Year.
Operating results
Moneyweb has made an operating loss this FY as a result of declined sales. Moneyweb
has as its medium term goal to improve its sales position and start turning a
profit throughout its business. We realise this is no small task and therefore are
constantly looking for ways to improve both on the sales and expense side. Moneyweb
is able to produce innovative advertising campaigns using the power of its
websites, radio platforms, newsletters and event activations. Clients are starting
to see the returns from using Moneyweb’s platforms and therefore the company is
building a strong client base. On the expense side Moneyweb will be re-locating to
cheaper premises and will utilise the office move to further cut or effectively
manage costs.
Moneyweb’s platforms have continued to build a solid niche audience in the
financial, business and investment space in South Africa. The Moneyweb.co.za
website attracted 44% more unique visitors in June 2014 than it did in June 2013.
The website is nearing the monthly four million page impression and 450 000 unique
visitors’ milestones. This easily puts moneyweb.co.za in the top three financial
and business websites in the country.
Moneyweb continues to produce the biggest daily business show in South Africa on
RSG between 18:30 and 19:00, hosted by veteran journalist Andries van Zyl. Siki
Mgabadeli has brought a new dimension to Moneyweb’s radio show on SAfm between
18:00 and 18:30 with the goal of growing our audience and educating them on all
finance-related matters. Moneyweb will be looking to utilise its state-of-the-art
studios to further generate revenue either through rental or for educational
purposes.
Moneyweb has launched its new daily digital newspaper known as Moneyweb Today. This
newspaper caters specifically for the investor, shareholder and potential investors
in the South African stock market. This newspaper is already attracting a daily
readership of between 6 000 and 8 000 individuals. Moneyweb Today will cater for
financial advertising for JSE listed companies and provide an alternative, more
cost effective solution to market themselves to their shareholders.
Moneyweb, in partnership with the Citizen, produces the daily CitiBusiness insert
which is to be utilised in conjunction with Moneyweb Today to attract financial
advertising. CitiBusiness is a popular financial publication in Gauteng and enjoys
widespread support.
Financial Results
Moneyweb’s revenue declined year-on-year by over R10 million. This was mostly due
to the termination of the Looklocal contract in the prior year that contributed
R9.235 million to FY2013 revenue. The resulting difference of just over R1.5
million decrease in revenue was due to lower than expected sales across Moneyweb’s
media platforms.
Moneyweb incurred an operational loss of R3.371 million. This loss arose from the
decrease in revenue.
Moneyweb has remained debt-free and has maintained cash reserves and investments of
R24.4 million. Current assets exceed current liabilities by a factor of 8.45.
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 court 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
piggybacking 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 has filed its replying affidavit and the matter will proceed to court, for
judicial determination in due course.
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, is sacrificed
in favour of the expediency of ubiquitous news reporting, as advocated by Media24.
Prospects
Moneyweb will continue to source independent, unique financial content to ensure
the public is kept up-to-date with accurate reporting on financial issues of
national importance. Moneyweb has sought to employ additional talent and has
brought Marc Ashton (former editor of Finweek) on board as publisher of the
Moneyweb titles and has replaced Hilton Tarrant (who has resigned from Moneyweb,
effective the end of August) with Siki Mgabadeli who is a well-respected and
outstanding radio journalist in South Africa.
Moneyweb will pursue radio revenue-generating content provision to the South
African broadcasting market. Moneyweb’s daily digital newspaper, Moneyweb Today
will be utilised to keep shareholders up-to-date with the latest investment,
business and financial news. Advertising sales from this venture are expected to
come through in the new financial year.
Dividend policy
No dividend has been declared.
Post balance sheet events
There are no material events subsequent to the end of the year and to the date of
this report that have not been reflected in the audited financial results or that
require further disclosure.
Basis of preparation
Statement of compliance
The audited condensed financial statements for the period ended 30 June 2014 have
been prepared in accordance with the framework concepts and the recognition and
measurement requirements of International Financial Reporting Standards (“IFRS”),
the financial reporting guides issued by the South African Institute of Chartered
Accountants (SAICA’s) Accounting Practises Committee (APC) and Financial
Pronouncements as issued by Financial Reporting Standards Council and contains the
information required by IAS34: Interim Financial Reporting, and is in compliance
with the requirements of the Companies Act of South Africa and the Listing
Requirements of the Johannesburg Stock Exchange.
The principal accounting policies used in the preparation of the results for the
period ended 30 June 2014 are consistent with those applied for the year ended 30
June 2013 and are in terms of IFRS. In terms of International Financial Reporting
Standard 8 – Operating Segments, the group is considered to be a single segment
business.
The directors of Moneyweb take full responsibility for the preparation of the report
and that the financial information has been correctly extracted from the underlying
group financial statements. The results have been prepared by Mr P Meyer, the
Financial Director of Moneyweb.
Basis of measurement
The audited condensed financial statements for the year ended 30 June 2014 have been
prepared on the historical cost basis with the exception of certain financial
instruments that are stated at fair value.
Going concern
The audited condensed financial statements for the year ended 30 June 2014 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.
Audit opinion
The annual financial statements, from which these condensed results have been
extracted, in itself not audited, have been audited by the group’s auditors BDO
South Africa Inc and their unmodified audit opinion is available for inspection at
the company’s registered office, together with the financial statements identified
in the auditor’s report. The auditor’s report does not necessarily report on all the
information contained in this announcement. Shareholders are therefore advised that
in order to obtain a full understanding of the nature of the auditor’s engagement
they should obtain a copy of the auditor’s report together with the accompanying
financial information from the company’s registered office. Any reference to the
future financial performance included in this announcement has not been reviewed or
reported on by the company’s auditor.
Changes to the board and committees
On 31 October 2013 Mr B Sturgeon, Mr V Mcobothi, Ms S Gordon and Ms A Isbister were
appointed as independent non-executive directors.
On 31 October 2013 Mr T Moolman, Mr P Greyling, Mr T Ncube and Mr S Masie resigned
as non-executive directors.
On Behalf of the Board
PM Jenkins
Executive Chairman
12 September 2014
Corporate Information
Non-executive directors: LW Sipoyo*; S Gordon*; A Isbister*; BN Sturgeon; WP van
der Merwe*; V Mcobothi*
*Independent director
Executive directors: PM Jenkins (Executive chairman); P Meyer (Financial Director)
Registered address: Number 5, 8th Street, Houghton Estate, 2096
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 (Pty) Limited
Auditors: BDO South Africa Incorporated
Designated Adviser: Arcay Moela Sponsors Proprietary Limited
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