Wrap Text
Provisional audited summarised consolidated group financial results for the year ended 30 June 2014
TIMES MEDIA GROUP LIMITED
Incorporated in the Republic of South Africa
Registration number: 2008/009392/06
Share code: TMG ISIN: ZAE000169272
("Times Media Group" or "TMG" or "the Company" or "the Group")
PROVISIONAL AUDITED
SUMMARISED CONSOLIDATED
GROUP FINANCIAL RESULTS
for the year ended 30 June 2014
SALIENT FEATURES
Profit from continuing
operations before
exceptional items
21% up on prior year
Operating costs from
continuing operations
down 16%
22% increase
in net cash flows from
operations before
working capital changes
Further R406 million
of acquisition finance
repaid – term debt
reduced to R292 million
TMG now the largest
English-language daily
newspaper publisher
in South Africa
Commentary
INTRODUCTION
The 12 months to 30 June 2014 has been a difficult period operationally, given the tough trading
environment. During the year, we continued to reposition and restructure the business, making several
acquisitions and selling non-core assets. We continued to bring TMG's infrastructure and cost base in
line with a company its size. Core operations performed satisfactorily in a difficult environment as we
focused on costs, efficiencies, growth and market share.
While results are difficult to compare given discontinued operations and exceptional items, the
continuing operations of TMG performed as follows (before head office):
EBITDA EBITDA
2014 2013 %
Rm Rm Increase
Media 182 169 8
Broadcasting and Content 42 7 500
Retail Solutions 191 172 11
These numbers include retrenchment costs.
We have completely turned around the Home Entertainment, Gallo Music and CD manufacturing
businesses with all showing profits after many years of losses. Entertainment Logistics Services and
Associated Music Distributors were closed down in September 2014, with working capital consequently
released.
Our philosophy is based on a focus on return on capital employed, rational allocation of capital and a
tightly controlled costs base. We are entrepreneurial and rapidly responsive in nature. We work hard
on instilling this philosophy into our subsidiaries and investments and strive to work with like-minded
management.
MEDIA
Comprises our newspapers, magazines and digital news sites
Our media division achieved solid growth in its profit contribution in difficult trading conditions.
The results include R20 million of retrenchment costs. Media's EBITDA margin improved from 9%
last year to 10% this year. Newspapers grew both advertising and circulation market share after
introducing innovative formats and investing in new routes to market. As a result, TMG is now the
largest publisher of English-language daily newspapers in South Africa in addition to being the market
leader on Sundays. Magazines delivered record profit contributions as a result of a strong performance
from SA Home Owner and the introduction of new and profitable subscriber-only titles. Our digital
news sites enjoyed robust growth in traffic and profits. TMG will launch several new digital sites in the
coming months, including Sunday Times online and Rand Daily Mail online.
BROADCASTING AND CONTENT
Comprises our radio stations, television broadcasting and production, films, music and Vidi
The past year has seen a significant expansion of Times Media's broadcasting interests across the
African continent. The acquisition of a 32,3% stake in Ghana's Multimedia Ltd in September 2013 was
followed this year by the purchase of a 49% stake in Kenya's Radio Africa Group (RAG) on 30 June 2014.
The acquisitions have created a pan-African presence for Times Media, with a strong presence in East,
West and Southern Africa.
Multimedia Ghana has six highly successful radio stations and a direct-to-home television platform
with wide West African reach. The Ghanaian economy has been under significant strain over the
past six months, and this has affected advertising revenue streams, but the radio business continues
to perform ahead of expectations. The TV business has been underperforming and TMG is actively
involved in helping to turn it around.
RAG in Kenya boasts five market-leading radio stations and is well positioned for Kenyan and
East African expansion opportunities. It plans to launch a digital terrestrial television (DTT) service
in the near future to capitalise on growing TV advertising revenues in the region. TMG continues to
follow opportunities in these regions and is due to complete the purchase of a 49% stake in Beat FM
and Capital Radio in Uganda shortly.
In South Africa, TMG has acquired controlling interests in two radio stations – Rise FM in Mpumalanga
and Vuma 103 FM in KwaZulu-Natal (KZN). Both are at early stages of development but are well placed
to grow in their respective markets and provide a solid radio base for TMG in the country. Vuma has
shown strong growth in listenership, doubling its weekly audience in a year and was also the only
station in KZN to show growth in the latest listenership data. The centralised national radio sales team
that services the two stations has also won the contract for selling advertising for North West FM,
providing economies of scale and increased market penetration. In addition, 99FM Radio in Namibia,
in which TMG has purchased a 56% stake subject to regulatory approval, has contracted with TMG to
sell its advertising.
Our local television business, ABC, launched its third 24/7 channel on the DStv platform. Motoring
channel, Ignition, moved from a weekends-only channel to add to our Home Channel and Business
Day TV. Early results have been positive and the TV channels business is performing well, along
with our production business, Ochre Moving Pictures. The television advertising sales business won
the contract to sell for Soweto TV – a powerful free-to-air community channel which also appears on
the DStv bouquet. In addition, we are providing content to Soweto TV via programming where we own
the rights.
Part of the rationale for the expansion into other sectors and the creation of cross-platform sales teams
is to provide a broader reach to our advertising clients. Our ability to offer packages spanning print,
television, radio and digital locally and in other African markets provides an opportunity to add value
to clients and develop innovative marketing and content solutions.
TMG has also developed a video-on-demand (VOD) business called Vidi, which launched in
September 2014, to take advantage of changing television consumption habits and the success of
similar services worldwide. Vidi helps position TMG at the forefront of changing television and media
trends. TMG has a 50% interest in this new business initiative.
Our films and music content businesses have shown good growth, and the restructuring process over
the past 18 months has had a positive impact on both businesses. Films, in particular, has been a strong
performer, affirming the decision to invest in long-term distribution rights for theatre, TV and other
platforms. TMG will continue to support the business as the premier all-rights independent distributor
on the continent. TMG has also expanded the Gallo Music catalogue by acquiring the Bula
music catalogue. A further two music catalogue acquisitions are imminent.
This is expected to show further growth as digital revenues become a sustainable
replacement for declining physical music sales.
RETAIL SOLUTIONS
Comprises Uniprint, Hirt & Carter and Times Media Entertainment
Uniprint
Uniprint's divisions performed extremely well during the year under review and achieved a turnover of
R403 million (excluding the web printing division) compared with last year's turnover of R350 million,
representing an increase of 15% over the previous year.
Uniprint closed its web printing division and disposed of those assets in August 2013. This decision was
taken primarily after losing the contract to print the white and yellow pages telephone directories for
Trudon, as well as management's assessment of excess capacity in the web printing market leading to
a reduction in margins.
Uniprint's turnover was boosted by successful initiatives in the export market, including election
work in Guinea, Mozambique and Bangladesh. In addition, Uniprint successfully executed a project for
Coca-Cola for the printing of personalised labels for the 500ml Coke bottle.
Margins during the period remained under pressure as a result of the depreciation of the rand, the
depressed state of the economy and difficulty in passing on cost increases to customers. Excluding web
printing, Uniprint achieved an EBITDA for the year of R55 million (2013: R38 million).
Uniprint acquired 100% of the labels business of Ferroprint effective 1 June 2014 for a purchase price of
R25 million. TMG's asset-based finance facility was used to acquire the Ferroprint plant and equipment
that comprised the bulk of the assets acquired. We anticipate once-off costs of approximately
R15 million to integrate this business. The acquisition will be earnings enhancing.
The strategy is to increase the size of Uniprint through acquisitions and organic growth and we believe
this will have a positive impact in the next financial year.
Hirt & Carter (H&C)
The trading environment for the 12 months to June 2014 has been mixed for the H&C business units.
As in the first half, margin squeeze and pricing pressure continued to affect the business for the six
months to June, on the back of consumer pressure in the retail environment. Despite this, H&C landed
several new clients for the business.
H&C grew turnover by 18% for the year, including contributions from T&R and Bates. EBITDA grew
7% to R125 million. Various once-off costs have been accounted for as exceptional items during the
year, as certain areas of the business were restructured to provide a lower cost base and streamlined
operational structure for current market conditions. H&C's return on capital employed is still
unacceptably low, and is being addressed by management.
The H&C software division continues to launch new products into the market, and has successfully
grown its customer base during the year. Over the period we enhanced our software offering to
provide customers with bespoke solutions to control their marketing spend, and effectively drive their
communications strategy to their consumers.
We acquired 100% of Bates Printing in Cape Town for R70 million in November 2013, which will
provide our national customers with regional printing capabilities and reduce logistic costs. This
acquisition has given our Western Cape operation appropriate regional scale. Bates has proved to be
a good acquisition with a strong management team, and is already generating a return on investment.
In addition to the Bates acquisition, we purchased a 30% share of Capacity Holdings, effective
1 July 2014. Capacity Holdings is a software business that manages and maintains a database of retail
supplier product photographs and metadata.
POST-RETIREMENT MEDICAL AID
Proceedings have been instituted by a number of former executive employees in relation to claims
for increases to post-retirement medical aid subsidies. These proceedings are being defended and
TMG's position will be set out in detail in the legal proceedings. TMG does not consider it appropriate
to comment further while the proceedings are pending, save to state that it is confident that its position
will be vindicated in due course.
OUTLOOK
Whilst the operating environment is difficult for all our divisions, we have worked hard at repositioning
and restructuring TMG over the past 18 months. We believe the results of this extensive work are starting
to come through and will start benefiting the Group over the next two years. We are working hard on
making our investments in Africa meet our expectations. Several new initiatives have been launched
which we believe will benefit TMG in terms of long-term growth and sustainability. In addition, the
hard work done on changing the philosophy and culture of TMG to be more entrepreneurial has had a
positive overall effect on the Group.
EVENTS AFTER THE REPORTING DATE
- New Holland Publishing's Australian and New Zealand operations were disposed of on 1 July 2014
for 2 million Australian dollars (approximately R20 million).
- On 1 July 2014, 100% of Future Publishing, a small publishing and eventing company, was acquired.
- A 30% interest in Capacity Holdings, a software business that manages and maintains a database
of retail supplier product photographs and metadata, was purchased for R5 million effective
1 July 2014.
- The Bedfordview property was sold on 13 August 2014 for R60 million.
- The 30,71% minority stake in Learning Channel was bought out on 1 September 2014.
- TMG's video-on-demand business, Vidi, was launched on 10 September 2014.
- Entertainment Logistics Services and Associated Music Distributors were closed down in
September 2014.
DIVIDEND
Notice is hereby given that a final gross dividend of 35 cents per ordinary share has been declared by
the directors for the year ended 30 June 2014, and is payable to shareholders recorded in the register
of shareholders of the Company at the close of business on Friday, 24 October 2014.
In compliance with the requirements of Strate, the electronic settlement and custody system used
by the JSE Limited, the following salient dates are applicable for the payment of the dividend:
Last day to trade cum dividend Friday, 17 October 2014
Shares commence trading ex dividend Monday, 20 October 2014
Record date Friday, 24 October 2014
Payment date Monday, 27 October 2014
Share certificates may not be dematerialised or rematerialised between Monday, 20 October 2014 and
Friday, 24 October 2014, both days inclusive.
The gross dividend of 35 cents per ordinary share has been declared from income reserves. The
dividend withholding tax rate is 15%. No secondary tax on companies credits have been used. The net
dividend amount payable to shareholders not exempt from dividend withholding tax is 29,75 cents per
ordinary share. TMG currently has 127 077 145 ordinary shares in issue. TMG's income tax reference
number is 9010/105/19/6. Deloitte & Touche is the Company's independent external auditor and Mr
JAR Welch is the designated audit partner.
For and on behalf of the board
KD Dlamini AD Bonamour
Chairman Chief Executive Officer
Rosebank
23 September 2014
Summarised consolidated statement of profit or loss
and other comprehensive income
Year ended Year ended
30 June 30 June
2014 2013
Rm Rm
CONTINUING OPERATIONS
Revenue 3 995 3 831
Cost of sales (2 951) (2 728)
Gross profit 1 044 1 103
Operating expenses (772) (878)
Operating costs (644) (766)
Depreciation (74) (80)
Amortisation (33) (32)
Share-based payments (21) –
Profit from operations before exceptional items 272 225
Exceptional items 87 (198)
Profit from operations 359 27
Net finance costs (36) (71)
Finance income 18 19
Finance costs including interest paid on cash flow hedges (54) (90)
Share of profits (losses) of associates and joint ventures
(net of income tax) 9 (26)
Profit (loss) before taxation 332 (70)
Taxation (expense) credit (107) 18
Profit (loss) from continuing operations 225 (52)
DISCONTINUED OPERATIONS
Profit from discontinued operations 172 62
(Loss) profit after taxation before profit on disposals (32) 15
Profit on disposals (net of capital gains tax) 204 47
Profit for the year 397 10
Other comprehensive (loss) income
Items that may be reclassified subsequently to profit or loss
Change in fair value of cash flow hedges (net of income tax) (7) 7
Exchange differences on translation of foreign operations (4) –
Other comprehensive (loss) income for the year
(net of income tax) (11) 7
Total comprehensive income for the year 386 17
Profit (loss) attributable to:
Owners of the Company 400 3
Profit (loss) from continuing operations 228 (54)
Profit from discontinued operations 172 57
Non-controlling interest (3) 7
(Loss) profit from continuing operations (3) 2
(Loss) profit from discontinued operations – 5
Profit for the year 397 10
Total comprehensive income (loss) attributable to:
Owners of the Company 389 10
Profit (loss) from continuing operations 223 (45)
Profit from discontinued operations 166 55
Non-controlling interest (3) 7
(Loss) profit from continuing operations (3) 2
Profit from discontinued operations – 5
Total comprehensive income for the year 386 17
Earnings (loss) per ordinary share from continuing operations
Basic (cents) 180 (52)
Diluted (cents) 178 (52)
Earnings per ordinary share from discontinued operations
Basic (cents) 135 41
Diluted (cents) 134 41
Earnings (loss) per ordinary share from continuing
and discontinued operations
Basic (cents) 315 (11)
Diluted (cents) 312 (11)
Summarised consolidated statement of changes in equity
Stated Other Accumulated Owners' Non-controlling Total
capital reserves profits interest interest equity
Rm Rm Rm Rm Rm Rm
Balance at 30 June 2012 704 856 568 2 128 79 2 207
Profit attributable to owners of the Company – – 3 3 7 10
Change in fair value of cash flow hedges (net of income tax) – 7 – 7 – 7
Shares issued 1 020 – – 1 020 – 1 020
Effect of reverse acquisition accounting – (1 978) – (1 978) – (1 978)
Effect of acquisitions and disposals of non-controlling interests – (2) – (2) (22) (24)
Equity-settled share incentive plans – (16) – (16) – (16)
Dividends paid by subsidiaries to non-controlling interests – – – – (18) (18)
Balance at 30 June 2013 1 724 (1 133) 571 1 162 46 1 208
Profit attributable to owners of the Company – – 400 400 (3) 397
Change in fair value of cash flow hedges (net of income tax) – (7) – (7) – (7)
Exchange differences on translation of foreign operations – (4) – (4) – (4)
Effect of acquisitions and disposals of non-controlling interests – – – – (35) (35)
Equity-settled share incentive plans – 21 – 21 – 21
Treasury shares – (12) – (12) – (12)
Dividends paid – – (32) (32) – (32)
Dividends paid by subsidiaries to non-controlling interests – – – – (8) (8)
Balance at 30 June 2014 1 724 (1 135) 939 1 528 – 1 528
Summarised consolidated statement of financial position
As at As at
30 June 30 June
2014 2013
Rm Rm
ASSETS
Non-current assets 1 669 1 431
Property, plant and equipment 380 392
Intangible assets 821 831
Interests in associates and joint ventures 376 22
Investments 2 13
Long-term receivable 8 –
Cash flow hedges – 10
Deferred taxation assets 82 163
Current assets 1 249 1 292
Inventories, receivables and other current assets 1 202 1 189
Bank balances, deposits and cash 47 103
Non-current assets classified as held for sale 203 893
Total assets 3 121 3 616
EQUITY AND LIABILITIES
Total equity 1 528 1 208
Equity attributable to owners of the Company 1 528 1 162
Non-controlling interest – 46
Non-current liabilities 514 1 019
Long-term borrowings 366 690
Post-retirement benefits liabilities 85 264
Operating leases equalisation liabilities 24 18
Deferred taxation liabilities 39 47
Current liabilities 1 047 972
Payables and other current liabilities 947 819
Short-term borrowings 48 56
Post-retirement benefits liabilities 9 10
Bank overdrafts 43 87
Liabilities directly associated with non-current assets
classified as held for sale 32 417
Total equity and liabilities 3 121 3 616
Summarised consolidated statement of cash flows
Year ended Year ended
30 June 30 June
2014 2013
Rm Rm
Net cash flows from operations before working capital changes 416 340
Working capital changes 57 174
Net cash flows from operations 473 514
Net finance costs including interest paid on cash flow hedges (33) (69)
Taxation paid (113) (69)
Net cash flows from operating activities 327 376
Net cash flows from investing activities (1) (116)
Net cash flows from financing activities (342) (552)
Net decrease in cash and cash equivalents (16) (292)
Cash and cash equivalents at the beginning of the year 59 354
Foreign operations translation adjustment (3) (3)
Cash and cash equivalents at the end of the year 40 59
Summarised consolidated segmental statement
Year ended Year ended
30 June 30 June
2014 2013
Rm Rm
CONTINUING OPERATIONS
Segmental revenue from external customers
Media 1 917 1 835
Broadcasting and Content 421 325
Retail Solutions 1 657 1 671
3 995 3 831
Segmental profit (loss) from operations before exceptional items
Media 162 156
Broadcasting and Content 27 1
Retail Solutions 133 108
322 265
Corporate (29) (40)
293 225
Share-based payments (21) –
272 225
Operational changes during the year, including management changes and acquisitions and disposals, have resulted in
changes in reportable segments. The relevant comparative financial information has been re-presented.
Notes
1. Basis of preparation
The summarised consolidated financial results for the year ended 30 June 2014 have been prepared and presented
in accordance with the framework concepts and the measurement and recognition requirements of International
Financial Reporting Standards (IFRS), the SAICA Financial Reporting Guides as issued by the Accounting Practices
Committee and Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council, the
Listings Requirements of the JSE Limited, the information as required by IAS 34: Interim Financial Reporting and
the requirements of the South African Companies Act 71 of 2008 as amended. The results have been prepared
using accounting policies that comply with IFRS and that are consistent with those applied in the financial
statements for the year ended 30 June 2013 apart from the adoption, from 1 July 2013 up to the reporting date,
of those new and amended IFRS standards and interpretations with effective dates for the Company of 1 July 2013
up to the reporting date, and those amendments included in the International Accounting Standards Board's
annual improvements project where such amendments were effective for the Company from 1 July 2013 up to
the reporting date. The adoption of the new and amended IFRS standards and interpretations, and improvements
project amendments, has not had a material effect on the Company's financial results.
On 25 September 2012, TMG acquired the entire issued ordinary share capital of Avusa via a scheme of
arrangement. The application of IFRS, in particular IFRS 3: Business Combinations, results in Avusa (the legal
acquiree) being recognised as the acquirer for accounting purposes, and in the transaction being accounted
for as a reverse acquisition. Accordingly, the summarised consolidated Group financial statements are
prepared as a continuation of the financial statements of Avusa (the legal subsidiary and accounting acquirer),
with one adjustment, which is the retroactive adjustment of Avusa's legal capital to reflect TMG's legal capital.
The calculation of earnings per share for the year ended 30 June 2013 is described in note 4 hereunder.
The preparation of these summarised consolidated Group financial statements was supervised by TMG's
financial director, Mr W Marshall-Smith CA(SA).
In compliance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, the relevant
comparative financial information has been re-presented.
Year ended Year ended
30 June 30 June
2014 2013
Rm Rm
2. Exceptional items
CONTINUING OPERATIONS
Media (21) (9)
– Impairment of community newspaper title (1) –
– Revaluation of investment – 2
– Post-retirement medical aid provisioning – (14)
– Gain on acquisition of BDFM Group – 24
– Retrenchment costs (20) (21)
Broadcasting and Content (4) (19)
– Gain on acquisition of Rise FM 3 –
– Gain on disposal of Ponte advertising site 10 –
– Impairment of goodwill (16) (13)
– Retrenchment costs (1) (6)
Retail Solutions (33) (54)
– Profit on sale of Universal Web assets 8 –
– Costs related to closure of Universal Web (6) –
– Gain on acquisition of Ferroprint 4 –
– Impairment of intangible assets – (27)
– Impairment of Uniprint plant – (10)
– Legacy balances and legal matters (15) –
– Retrenchment costs (24) (17)
Entertainment – (77)
– Legacy balances and legal matters – (7)
– Profit on disposal of property – 2
– Impairment of customised SAP system – (16)
– Impairment of gaming stock – (14)
– Losses on non-renewal of licence – (21)
– Increased stock provisioning – (12)
– Write-off of development costs of new business channels – (9)
Corporate 145 (39)
– Revaluation of listed investments 1 –
– Post–retirement medical aid 149 –
– Costs related to acquisitions (4) –
– Retirement fund surplus – 9
– Scheme of arrangement transaction costs – (62)
– Credit arising on cancellation of Avusa share incentive plans – 14
– Retrenchment costs (1) –
87 (198)
3. Reconciliation between earnings and headline earnings
CONTINUING OPERATIONS
Earnings (loss) 228 (54)
(Profit) loss on disposal of property, plant and equipment (6) 3
(Profit) loss on disposal of intangible assets (10) 2
Impairment of plant and equipment – 10
Impairment of intangible assets 1 42
Impairment of goodwill 16 13
Impairment of loan – 25
Revaluation of investments (1) (3)
Gain on acquisition of Rise FM and Ferroprint (2013: BDFM Group) (7) (24)
Tax effect 18 (16)
Attributable to non-controlling interest – –
Headline earnings (loss) 239 (2)
Headline earnings (loss) per ordinary share from continuing operations
Basic (cents) 188 (15)
Diluted (cents) 187 (15)
DISCONTINUED OPERATIONS
Earnings 172 57
Profit on disposal of interests in I-Net Bridge, Boo Media, Map Studio,
Van Schaik Bookstore, Exclusive Books, Random House Struik, Struik
Christian Media, Mega Digital, Nu Metro Cinemas and Popcorn Cinema
Advertising Sales, Warner Music Gallo Africa and MapIT (2013: Monte
Cinemas and Suncoast Cinema) (232) (52)
Loss on disposal of property, plant and equipment 2 1
Profit on disposal of properties (8) –
Impairment of carrying value of business 3 –
Impairment of plant and equipment – 6
Impairment of intangible assets – 15
Impairment of goodwill – 20
Tax effect 34 (2)
Attributable to non-controlling interest – –
Headline (loss) earnings (29) 45
Headline (loss) earnings per ordinary share from discontinued operations
Basic (cents) (23) 32
Diluted (cents) (23) 32
Total headline earnings from continuing and discontinued operations 210 43
Headline earnings per ordinary share from continuing and
discontinued operations
Basic (cents) 165 17
Diluted (cents) 164 17
4. Earnings per ordinary share
The calculation of basic earnings and headline earnings per ordinary share for the year ended 30 June 2014 is
based on earnings of R400 million and headline earnings of R210 million, respectively, and on a weighted average
of 126 981 955 ordinary shares in issue.
The calculation of diluted earnings and diluted headline earnings per ordinary share for the year ended 30 June
2014 is based on earnings of R400 million and headline earnings of R210 million, respectively, and on a weighted
average of 128 126 827 diluted ordinary shares in issue. The additional diluted ordinary shares arise as a result
of equity-settled share incentives in issue.
The earnings and headline earnings for the year ended 30 June 2013 include a comparative interest charge of
R19 million from the beginning of that year to the reverse acquisition date of 25 September 2012 in respect of the
R1,15 billion term loans raised. The weighted average number of ordinary shares in issue during the year ended
30 June 2013 is calculated on the basis of the number of ordinary shares in issue from the beginning of the year
to the acquisition date, being the weighted average number of ordinary shares of Avusa (the accounting acquirer)
in issue during that period, multiplied by the share exchange ratio in terms of the acquisition, and the weighted
average number of ordinary shares in issue from the acquisition date to the end of the year, being the weighted
average number of ordinary shares of TMG (the legal acquirer) in issue during that year.
The calculation of basic and diluted earnings and headline earnings per ordinary share for the year ended
30 June 2013 is based on a loss of R16 million and headline earnings of R24 million, respectively, and on a
weighted average of 141 230 227 ordinary shares in issue.
5. Discontinued operations
The following assets comprise TMG's discontinued operations:
Media
- Industria property
- Port Elizabeth property
- I-Net Bridge (disposed of on 15 November 2013)
- East London properties (disposed of on 10 October 2013)
Broadcasting and Content
- Boo Media (disposed of on 1 May 2014)
- Interactive Junction Holdings
Retail Solutions
- Bedfordview property
Books
- Map Studio (disposed of on 30 June 2014)
- Van Schaik Bookstore (disposed of on 2 December 2013)
- Exclusive Books (disposed of on 1 December 2013)
- New Holland Publishing (Random House Struik disposed of on 25 November 2013, Mega Digital disposed of
on 1 November 2013 and Struik Christian Media disposed of on 29 July 2013)
- MapIT (disposed of on 31 May 2013)
Entertainment
- Nu Metro Cinemas including Popcorn Cinema Advertising Sales (disposed of on 28 November 2013)
- 40% interest in Warner Music Gallo Africa (disposed of on 31 July 2013)
- Monte Cinemas (disposed of on 28 June 2013)
- 50% stake in Three Groups Cinemas (Suncoast Cinema) (disposed of on 31 May 2013)
Year ended Year ended
30 June 30 June
2014 2013
Rm Rm
Revenue 920 2 182
Cost of sales (479) (1 185)
Gross profit 441 997
Operating expenses (430) (901)
Operating costs (402) (838)
Depreciation (20) (51)
Amortisation (8) (12)
Profit from operations before exceptional items 11 96
Exceptional items (11) (66)
Profit from operations – 30
Net finance income 1 1
Finance income 2 5
Finance costs (1) (4)
Share of (losses) profits of associates (net of income tax) (12) 2
(Loss) profit before taxation (11) 33
Taxation (21) (18)
(Loss) profit after taxation before profit on disposals (32) 15
Profit on disposals (net of capital gains tax) 204 47
Profit on disposal of properties 8 –
Profit on disposal of I-Net Bridge 85 –
Loss on disposal of Boo Media (3) –
Loss on disposal of Map Studio (1) –
Profit on disposal of Van Schaik Bookstore 116 –
Profit on disposal of Exclusive Books 63 –
Loss on disposal of Random House Struik (7) –
Loss on disposal of Struik Christian Media (1) –
Loss on disposal of Nu Metro Cinemas and Popcorn Cinema Advertising Sales (18) –
Loss on disposal of Warner Music Gallo Africa (1) –
(Loss) profit on disposal of MapIT (1) 32
Profit on disposal of Monte Cinemas – 11
Profit on disposal of Three Groups Cinemas (Suncoast Cinema) – 9
Capital gains tax (36) (5)
Profit from discontinued operations 172 62
Segmental revenue from external customers
Media 54 116
Broadcasting and Content 75 68
Books 654 1 584
Entertainment 137 414
920 2 182
Segmental profit (loss) from operations before exceptional items
Media (1) 6
Broadcasting and Content (1) 3
Books 12 90
Entertainment 1 (3)
11 96
Segmental exceptional items
Broadcasting and Content
– Goodwill impairment – (20)
Books (12) (31)
– Impairment of Exclusives.co.za (1) (15)
– Increased provisioning of stock and debtors (1) (13)
– Retrenchment costs (3) (3)
– Early termination of lease (4) –
– Impairment of carrying value of business (3) –
Entertainment 1 (15)
– Final dividend from Monte Cinemas 1 –
– Impairment of property, plant and equipment – (6)
– Onerous leases – (7)
– Retrenchment costs – (2)
(11) (66)
Assets and liabilities of discontinued operations classified as held for sale
Non-current assets 92 259
Current assets 111 634
Non-current liabilities 6 32
Current liabilities 26 385
Cash flow information
Net cash flows from operations 11 156
Taxation paid 1 (5)
Net cash flows from operating activities 12 151
Net cash flows from investing activities (62) 7
Net cash flows from financing activities 44 (13)
Foreign operations translation adjustment (3) (3)
Cash flows from discontinued operations (9) 142
6. Report of the independent external auditor
The consolidated financial statements for the year have been audited by Deloitte & Touche, and their accompanying
unmodified audit report as well as their unmodified audit report on this set of summarised financial information
is available for inspection at the Company's registered office. The auditor's report does not necessarily report on
all of the information contained in this announcement. Any reference to future financial performance included in
this announcement has not been reviewed or reported on by the Company's auditors. 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 their report with the accompanying financial information from the Company's registered office.
Directors: KD Dlamini (Chairman), AD Bonamour* (Chief Executive Officer), W Marshall-Smith*
(Financial Director), JHW Hawinkels, HK Mehta, R Naidoo, MM Nhlanhla, MSM Xayiya *Executive
Company secretary: JR Matisonn Email: matisonnj@timesmedia.co.za
Address: 4 Biermann Avenue, Rosebank, 2196, Johannesburg; PO Box 1746, Saxonwold, 2132
Sponsor: PSG Capital
These results may be viewed on the internet at www.timesmedia.co.za
Date: 23/09/2014 12:30:00 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 
