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Audited Condensed Results for the year ended 30 June 2015
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 2015
Condensed Group Statement of Comprehensive Income
Audited Audited
30-Jun-15 30-Jun-14
R'000 R'000
Revenue 25 501 23 494
Loss before investment income, fair value adjustments,
depreciation, amortisation, impairments and exchange
gains/(losses) (4 044) (3 371)
Depreciation and amortisation (332) (578)
Other financial asset interest 1 235 1 115
Bank interest 302 253
Finance charges (10) -
Fair value adjustment of investment and other financial
asset (243) 39
Foreign exchange gains 3 18
Loss on write-off of tangible assets - (5)
Net loss before taxation (3 089) (2 529)
Taxation 72 (107)
Profit from joint ventures - -
Net loss for the period (3 017) (2 636)
Other comprehensive income - -
Total comprehensive loss for the period (3 017) (2 636)
Basic and diluted loss per share (cents) (2.83) (2.47)
Weighted average number of shares in issue (000's) 106 575 106 575
Reconciliation of headline loss
Net loss for the period (3 017) (2 636)
Loss on write-off of tangible assets - 5
Headline loss (3 017) (2 631)
Basic and diluted headline loss per share (cents) (2.83) (2.47)
Weighted average number of shares in issue (000's) 106 575 106 575
Condensed Group Statement of Financial Position
Audited Audited
30-Jun-15 30-Jun-14
R'000 R'000
Assets
Non-current assets
Tangible fixed assets 620 545
Investment in joint ventures 13 13
Other investment 34 32
Deferred taxation 237 165
Other financial asset 1 082 -
1 986 755
Current assets
Trade and other receivables 3 127 3 622
Other financial asset 18 587 18 679
Cash and cash equivalents 3 696 5 749
25 410 28 050
Total assets 27 396 28 805
Equity and liabilities
Capital and reserves
Share capital and premium 32 732 32 732
Accumulated loss (10 262) (7 245)
Ordinary shareholders’ interest 22 470 25 487
Current liabilities
Trade and other payables 4 008 2 502
Deferred revenue 908 806
Taxation 10 10
4 926 3 318
Total equity and liabilities 27 396 28 805
Net asset value per share (cents) 21.1 23.9
Net tangible asset value per share (cents) 21.1 23.9
Closing number of shares in issue (net of treasury) (000’s) 106 575 106 575
Condensed Group Statement of Changes in Equity
Share Share Accumulated
capital premium loss Total
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 loss for the
period ended 30 June 2015 - - (3 017) (3 017)
Balance at 30 June 2015 107 32 625 (10 262) 22 470
Condensed Group Statement of Cash Flow
Audited Audited
30-Jun-15 30-Jun-14
R'000 R'000
Net cash outflows from operating activities (1 665) (2 631)
Net cash outflows from investing activities (407) (47)
Effect of exchange rate movement on cash balances 19 113
Cash and cash equivalents at beginning of period 5 749 8 314
Cash and cash equivalents at end of period 3 696 5 749
Business overview
In our experience there has never been a more volatile time in South African media. Traditional
print players are being disrupted and while digital technology offers a wealth of opportunities, very
few businesses are effectively monetising their platforms.
South African digital media players are no longer just competing against each other, but are
facing a relentless challenge from the likes of Google, Facebook and LinkedIn for advertising
revenue. Low-cost, programmatic or network advertising buying is an additional threat to a
business which is built around original content creation.
In 2014, Moneyweb recognised the challenge it faced and began to invest in new initiatives to
diversify its model away from low-cost banner serving. These initiatives include specialist events,
video production, investment show-cases for JSE-listed businesses and integrated radio, event-
based and digital campaigns.
Since listing in 1998, there have been great expectations around Moneyweb becoming a leading
player in the market. We now receive more than 460 000 unique visitors to our site each month,
our Moneyweb Today digital newspaper goes out to 100 000 people daily and if we combine this
with our audiences on Mineweb.com and radio, we are reaching around 750 000 people every
month.
We are cognisant of the fact that shareholders and stakeholders, would wish to see some of this
translate into a profitable operating entity.
Operating results
Impacted by a weak advertising environment, legal costs associated with the Media24 case and
our investments in our Adlip video unit plus our new digital properties, The Moneyweb Investor,
Moneyweb DRIVE and Property Mogul, Moneyweb has reported a full-year loss.
Having delivered a strong first half of the financial year, this result is below expectation. However
we believe that our shareholders will ultimately benefit from the investments made in editorial
resources, our sales function and our new offerings.
Financial Results
Moneyweb has increased its revenue by 8.5% year-on-year. At the same time Moneyweb’s cost
base has significantly increased due to higher legal expenses as a result of the ongoing Media24
case and due to staff employment and use of further freelance services. The ongoing legal case
has cost Moneyweb R1.3 million this financial year and R609 000 in the previous financial year.
Moneyweb reported an interim profit for the period ending 31 December 2014 of R513 000. In the
following six months up until 30 June 2015 Moneyweb’s sales declined drastically due to economic
pressures on advertisers and less advertising spend across the Moneyweb platforms. Also in these
six months, the bulk of the legal expenses came through and this is when Moneyweb started to
employ staff and expand its freelance services. This led to an operating loss of R4.044 million for the
full financial year. Moneyweb is looking to benefit from organic growth and to capitalise on
investments in employees and freelance services.
Cash flows from operating activities remain under pressure and the aim is to become cash positive
as revenues start to grow. There has been excellent debt collection through-out the year with no
write-offs. There is a provision for bad debts of 4.5% of debtors at financial year-end of which the
majority is expected to be recovered. There has been good management of working capital
which assisted in reducing the negative operational cash flow. Cash reserves have decreased
from R24.4 million to R23.4 million and the group has remained debt free.
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 and in the interim results SENS announcement,
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. The
matter has been heard in court and a judgement is expected in the near future.
Prospects
Moneyweb has appointed Marc Ashton as Managing Director of the business with the specific
goal of monetising the Moneyweb titles.
The launch of The Money Expo in August 2015 has been an exciting and profitable new addition to
the business. Moneyweb undertook to host a two-day exhibition at the Sandton Convention
Centre and our ability to generate a positive return on capital employed from this at our first
attempt is a testament to the strength of the Moneyweb brand. Moneyweb will look to host more
high-level corporate events and link this to our growing radio and online audiences.
Moneyweb’s key focus is to grow revenue and return the company to profitability ensuring an
acceptable return for shareholders.
Acquisitions, disposals and share issues
There were no acquisitions, disposals or share issues during the year under review.
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 2015 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 Listings
Requirements of the Johannesburg Stock Exchange.
The principal accounting policies used in the preparation of the results for the year ended 30 June
2015 are consistent with those applied for the year ended 30 June 2014 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 2015 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 2015 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 7 October 2014 Mr MJ Ashton was appointed as an executive director.
On Behalf of the Board
PM Jenkins
Executive Chairman
16 September 2015
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); MJ Ashton (Managing director); P Meyer
(Financial director)
Registered address: Number 5, 8th Street, Houghton Estate, 2198
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 Advisor: Arbor Capital Sponsors Proprietary Limited
Date: 16/09/2015 02:38:00 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.
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