Unaudited Condensed Financial Results for the six months ended 31 December 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") UNAUDITED CONDENSED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2014 Condensed Group Statement of Comprehensive Income Unaudited Unaudited Audited 6 months 6 months 12 months 31-Dec-14 31-Dec-13 30-Jun-14 R'000 R'000 R'000 Revenue 14 403 13 592 23 494 Profit/(Loss) before investment income, fair value adjustments, depreciation, amortisation, impairments and exchange gains/(losses) 245 (1 649) (3 371) Depreciation and amortisation (182) (298) (578) Investment income 329 540 1 115 Bank interest 182 128 253 Fair value adjustment of other investment and other financial asset - - 39 Foreign exchange (losses)/gains (8) (43) 18 Profit/(loss) on write-off of tangible assets 7 (6) (5) Net profit/(loss) before taxation 573 (1 328) (2 529) Taxation (60) (63) (107) Net profit/(loss) for the period 513 (1 391) (2 636) Other comprehensive income - - - Total comprehensive profit/(loss) for the period 513 (1 391) (2 636) Basic and diluted earnings/(loss) per share (cents) 0.48 (1.31) (2.47) Weighted average number of shares in issue (000’s) 106 575 106 575 106 575 Reconciliation of headline profit/(loss) Net profit/(loss) for the period 513 (1 391) (2 636) (Profit)/loss on write-off of tangible assets (7) 6 5 Headline earnings/(loss) 506 (1 385) (2 631) Basic and diluted headline earnings/(loss) per share (cents) 0.48 (1.30) (2.47) Weighted average number of shares in issue (000’s) 106 575 106 575 106 575 Condensed Group Statement of Financial Position Unaudited Unaudited Audited 31-Dec-14 31-Dec-13 30-Jun-14 Assets R'000 R'000 R'000 Non-current assets Tangible fixed assets 432 791 545 Investment in joint venture 13 13 13 Other investment 32 24 32 Deferred taxation 106 210 165 583 1 038 755 Current assets Trade and other receivables 3 727 3 832 3 622 Other financial asset 19 007 18 073 18 679 Cash and cash equivalents 6 778 8 057 5 749 29 512 29 962 28 050 Total assets 30 095 31 000 28 805 Equity and liabilities Capital and reserves Share capital and premium 32 732 32 732 32 732 Accumulated loss (6 732) (6 000) (7 245) Ordinary shareholders’ interest 26 000 26 732 25 487 Current liabilities Trade and other payables 3 389 3 325 2 502 Taxation 10 10 10 Deferred revenue 696 933 806 4 095 4 268 3 318 Total equity and liabilities 30 095 31 000 28 805 Net asset value per share (cents) 24.4 25.1 23.9 Net tangible asset value per share (cents) 24.4 25.1 23.9 Closing number of shares in issue (net of (treasury) (000’s) 106 575 106 575 106 575 Condensed Group Statement of Changes in Equity Share Share Accumulated Total capital premium deficit R'000 R'000 R'000 R'000 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 Total comprehensive profit for the period ended 31 December 2014 - - 513 513 Balance at 31 December 2014 107 32 625 (6 732) 26 000 Condensed Group Statement of Cash Flow Unaudited Unaudited Audited 6 months 6 months 12 months 31-Dec-14 31-Dec-13 30-Jun-14 R'000 R'000 R'000 Net cash inflows/(outflows) from operating activities 1 090 291 (2 518) Net cash outflows from investing activities (61) (548) (47) Cash and cash equivalents at end of period 6 778 8 057 5 749 Financial results Moneyweb has turned its operating profit around by R1.894m from a loss in the comparative 6 month period of R1.649m to a profit of R245k at end December 2014. This turn-around arose from an increase in revenue of 5.97% and a decrease in cost of sales and operating expenses of 7.1%. Moneyweb has grown its revenue through event activations and cross platform selling. Cash flows from operating activities were a positive R1.090m due to positive movements in working capital, cash generated from operations and bank interest. Moneyweb has maintained cash reserves of R25.785m which ensures the group is in a strong going-concern position. This position will enable Moneyweb to take advantage of investment opportunities in the market. Current assets exceed current liabilities with a factor of 7.20. The group has remained debt free. Operating results We are pleased to announce a return to interim profitability for the period under review. The company generated revenue of R14.4 million and a net profit of R513k over the period. This compares favourably to a net-loss of R1.391m for the previous corresponding period. Tangible net asset value improved to 24.4c per share, up from 23.9c from the 30 June 2014 year-end. This improved operating performance has been driven by a more focused sales effort coupled with tight cost controls. Our decision to relocate our head office from Melrose Arch to Houghton has created significant savings which started to come through in the latter part of the year. Moneyweb.co.za continues to grow and is consistently serving 4 million page impressions each month and reaching more than 400 000 visitors. The site was re- designed in early 2015, and this will open it up to a mobile audience which is likely to provide a wider reach as well as potential revenue streams. The Moneyweb Today digital newspaper now reaches more than 150 000 people and serves more than 1 million page impressions each month. It has begun to contribute revenue to the bottom-line. Our business radio shows on the SABC include RSG Geldsake - the biggest business show in the country - as well as SAfm Market Update, which are attracting new audiences. We are in the unique position of being the partner of choice for the SABC in terms of financial content. Litigation A core feature of the Moneyweb business is our ability to deliver high-quality original content to our loyal reader base. We respect our audience and have no interest in competing on a low-cost aggregation model. As disclosed in our previous full-year financial results, Moneyweb has been engaged in litigation against Media24 and its Fin24 business unit. We argue that they have infringed on our Intellectual Property (IP) and taken advantage of our own investment in financial journalists to further their coverage and reproduced our work and presented it as their own. Media24 has denied the allegations, claiming that copyright does not subsist in the reporting of news. Having extensively consulted with legal and industry professionals, we are confident that the Media24 / Fin24 practice is not in-line with either local or international copyright standards. Both Moneyweb and Media24 have filed their Heads of Argument. The matter is expected to be heard in court in the first week of May 2015. Prospects The South African business media sector is going through a highly disruptive phase at the moment. Traditional players are facing restructuring, the closure of the South African Press Association (SAPA) means that low-cost aggregation is no longer an option and economic growth remains tepid. A key benefit for Moneyweb is that we have a low cost base and cash resources to deploy when we spot tactical opportunities. The six month period under review has seen Moneyweb invest in both its internal capacity - including sales and editorial - as well as identify key properties which we will be able to own and monetise over the coming years. Importantly we needed to understand exactly what it is we are good at so as to allocate capital appropriately. Key opportunities include: • Our digital newspaper Moneyweb Today has gained traction and apart from being one of the fastest growing digital publications in the business and finance sector, is also becoming a regular outlet for financial results for JSE-listed businesses; • We will be running the inaugural Money Expo in 2015 which alongside our other event properties are expected to be both profitable and an excellent opportunity to interact with Moneyweb readers; • During 2015 we will roll out exciting projects for financial content in IsiZulu (Ezemali), financial education (Moneyweb Masterclass) as well as crowd-funding and video related content. A media company is a curious one in that it serves three masters - an audience, its advertisers and its shareholders. While Moneyweb has historically been good at serving the former two, it has not dedicated enough focus to the latter. It is our stated intention to grow our turnover aggressively over the next 18 months and look to grow organically and by way of investment. 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 2014 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 07 October 2014, Mr Marc Ashton was appointed as managing director of the company. On Behalf of the Board PM Jenkins Executive Chairman 19 March 2015 Corporate Information Non executive directors: LW Sipoyo; SJ Gordon; AJ Isbister; BN Sturgeon; WP van der Merwe; VW Mcobothi Executive directors: PM Jenkins (Chairman); MJ Ashton; P Meyer Registered address: Number 5, 8th Street, Houghton Estates, 2096 Postal address: PO Box 8, Melrose Arch, 2076 Company secretary: N Sooka Telephone: (011) 344 8600 Transfer secretaries: Computershare Investor Services Proprietary Limited Auditors: BDO South Africa Incorporated Designated Adviser: Arbor Capital Sponsors Proprietary Limited Date: 19/03/2015 12:10:00 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. 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