Wrap Text
Unaudited Results for the six months ended 30 September 2015
AFRICAN MEDIA ENTERTAINMENT LIMITED
Incorporated in the Republic of South Africa
Registration number 1926/008797/06
JSE code: AME ISIN: ZAE000055802
("AME" "the company" or "the group")
UNAUDITED
RESULTS
for the six months ended 30 September 2015
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
six months to six months to year ended
30 September 30 September 31 March
% 2015 2014 2015
change R'000 R'000 R'000
Revenue 5 123 032 117 121 254 631
Cost of sales 8 (33 975) (31 385) (61 047)
Gross profit 89 057 85 736 193 584
Operating expenses (64 092) (59 086) (123 428)
Operating profit (6) 24 965 26 650 70 156
Investment income 1 500 1 750 1 750
Finance income 3 039 2 821 5 879
Finance cost (1) (2) (6)
Profits attributable to associates 137 118 507
Net profit before taxation (5) 29 640 31 337 78 286
Taxation (8 041) (8 816) (21 715)
SA normal taxation (9 126) (9 797) (22 359)
Deferred taxation 1 085 981 644
Total comprehensive income
for the period (4) 21 599 22 521 56 571
Total comprehensive income
attributable to:
Non-controlling interest holders 2 139 3 118 6 942
Equity holders of the parent 0,3 19 460 19 403 49 629
Earnings per share (cents) 0,6 239,2 237,8 608,2
Headline earnings per share
(cents) 1,2 239,2 236,3 612,5
Dividends per share (cents) 100 100 350
Weighted average number of
shares in issue (000's) 8 137 8 160 8 160
Headline earnings reconciliation
Profit attributable to equity
holders 19 460 19 403 49 629
(Profit)/loss on disposal of
investment/fixed assets – (162) 354
Tax on disposal of assets – 45 –
Headline earnings 19 460 19 286 49 983
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION
Unaudited Unaudited Audited
30 September 30 September 31 March
2015 2014 2015
R'000 R'000 R'000
Assets
Non-current assets 140 670 108 409 125 441
Property, plant and equipment 73 899 43 011 60 152
Goodwill 39 426 39 426 39 426
Investments 13 873 13 248 13 476
Deferred taxation 13 472 12 724 12 387
Current assets 160 855 168 251 185 713
Trade receivables 65 251 71 253 71 634
Other receivables 6 650 7 759 8 242
Tax paid in advance 2 444 694 324
Cash and cash equivalents 86 510 88 545 105 513
Total assets 301 525 276 660 311 154
Equity and liabilities
Total equity 198 961 178 195 201 504
Current liabilities 102 564 98 465 109 650
Trade payables 32 406 42 735 37 945
Other payables 68 298 54 004 68 587
Dividend payable 1 399 1 170 1 245
Taxation 461 556 1 873
Total equity and liabilities 301 525 276 660 311 154
CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN EQUITY
Unaudited Unaudited Audited
six months to six months to year ended
30 September 30 September 31 March
2015 2014 2015
R'000 R'000 R'000
Issued capital
Balance at beginning of period 8 159 8 160 8 160
Shares repurchased (39) (1) (1)
Balance at end of period 8 120 8 159 8 159
Share premium
Balance at beginning of period 12 839 12 921 12 921
Shares repurchased (3 769) (82) (82)
Balance at end of the period 9 070 12 839 12 839
Retained profit
Balance at beginning of period 179 760 152 749 152 749
Change in shareholding – 9 1 903
Total comprehensive income for the period 19 460 19 403 49 629
Dividend (20 334) (16 403) (24 521)
Balance at end of period 178 886 155 758 179 760
Non-controlling interests
Balance at beginning of period 746 2 012 2 012
Change in shareholding – (18) (1 912)
Share of total comprehensive income for
the period 2 139 3 118 6 942
Share of dividend – (3 673) (6 296)
Balance at end of period 2 885 1 439 746
Total capital and reserves 198 961 178 195 201 504
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
Unaudited Unaudited Audited
six months to six months to year ended
30 September 30 September 31 March
2015 2014 2015
R'000 R'000 R'000
Cash generated by operating activities 27 379 28 508 74 008
Net interest received 3 038 2 819 5 873
Taxation paid (12 658) (13 048) (23 923)
Decrease/(increase) in working capital 2 149 (8 040) (636)
Cash flows from operating activities 19 908 10 239 55 322
Cash flows from investing activities (18 730) (8 048) (25 497)
Cash flows from financing activities* (20 181) (19 925) (30 591)
Net decrease in cash and cash equivalents (19 003) (17 734) (766)
Cash and cash equivalents at beginning
of period 105 513 106 279 106 279
Cash and cash equivalents at end
of period 86 510 88 545 105 513
(*)Dividends paid
SEGMENTAL REPORTING
Unaudited Unaudited Audited
six months to six months to year ended
30 September 30 September 31 March
2015 2014 2015
R'000 R'000 R'000
Revenue
Radio Broadcasting 90 290 84 779 210 278
Sales houses 32 742 32 342 44 142
Corporate – – 211
Total 123 032 117 121 254 631
Profitability
Radio Broadcasting 24 363 26 831 56 311
Sales houses 2 469 4 851 15 691
Corporate (1 867) (5 032) (1 846)
Total operating profit 24 965 26 650 70 156
Unallocated/eliminated corporate net
expense and intercompany consolidation 137 118 507
Investment income 1 500 1 750 1 750
Interest received 3 039 2 821 5 879
Interest paid (1) (2) (6)
Taxation (8 041) (8 816) (21 715)
Total comprehensive income for
the period 21 599 22 521 56 571
Assets
Radio Broadcasting 77 972 55 544 66 009
Sales houses 61 984 70 340 68 141
Corporate 75 059 62 231 71 491
Total 215 015 188 115 205 641
Liabilities
Radio Broadcasting 50 457 26 086 49 521
Sales houses 46 803 62 974 51 718
Corporate 5 304 9 405 8 411
Total 102 564 98 465 109 650
Capital expenditure
Radio Broadcasting 11 202 951 5 353
Sales houses 130 7 633 1 050
Corporate 4 830 378 22 572
Total 16 162 8 962 28 975
Depreciation
Radio Broadcasting 1 833 1 346 2 599
Sales houses 426 375 788
Corporate 156 44 208
Total 2 415 1 765 3 595
CHAIRMAN'S REVIEW
Review of the six months ended 30 September 2015
Trading conditions for the period under review were tough with lower growth in revenue.
Our operations experienced an increase in revenue of 5% to R123 million (2014 R117,1 million).
Comprehensive income decreased by 4% to R21,6 million (2014 R22,5 million).
The comprehensive income attributable to equity holders of the parent amounted to R19,5 million
(2014: R19,4 million) with earnings per share of 239,2 cents (2014: 237,8 cents). Headline earnings
per share was 239,2 cents (2014: 236,3 cents).
After paying tax of R12,7 million (2014: R13,0 million), the group generated R19,9 million
(2014: R10,2 million) in cash from its operating activities during the year. The group invested
R13,5 million (2014: R6,2 million) on the development of the site in Bloemfontein earmarked to be
the new home of the Central Media Group and spent R2,7 million (2014: R2,8 million) on capital
expenditure. The group paid R3,8 million (2014: R83 000) to repurchase 39 200 (2014:1 000)
of its own shares. During the period the group paid out dividends of R20,2 million
(2014: 19,9 million) to the equity holders of the company. The group ended the period with cash
resources of R86,5 million (2014: R88,5 million).
Operations
Low business confidence remains a key challenge across all sectors resulting in demanding trading
conditions. Innovation and tight cost control remain imperative.
AlgoaFM has delivered stable results. Advertising revenue is still constrained by the relatively weak
local direct market which is largely Eastern Cape based. Cost containment is a major focus and has
contributed to the profitability of the radio station. Listenership has shown growth year on year.
Algoa FM remains committed to the community in its broadcast footprint and the annual Algoa FM
Big Walk for Cancer charity event attracted 11 900 participants. This event was presented by the
Department of Health, Eastern Cape.
Trading conditions for Central Media Group remain tight as the effects of a sluggish economy
combined with the severe drought taking hold. The radio broadcaster, OFM, is performing close to
expectation, mostly due to good cost control. Redstar has won new contracts across the region
and has been able to move that revenue to the bottom line. Digital Platforms is also tracking ahead
of expectation with a few new national customers. Mahareng Publishing is experiencing the
slowdown in national print confidence after good growth off a low base.
The first six months of this financial year have been a tough trading period for Media in general, and
RadioHeads was affected with the first six months performing below par compared to the same
period in the previous financial period. Clients are currently taking longer to sign off on campaigns,
while at the same time shifting campaigns to the last quarter of 2015 and the first quarter of 2016.
United Stations has grown sales revenue year on year. The two stations lost from their
portfolio were replaced by four new client stations, covering KZN, Mpumalanga, North West and
Western Cape, whilst KAYA gave notice of their intention to appoint another sales house. United
Stations remains well positioned to serve its radio stations in the national radio advertising market
despite the challenging conditions.
Dividends
A final dividend (dividend no 7) of 250 cents per ordinary share (gross) was declared for the year
ended 31 March 2015 (2014: 200 cents gross) and paid on 13 July 2015. The interim dividend
(dividend no 8) for the period ended 30 September 2015 is 100 cents per ordinary share (gross)
(2014: 100 cents per share).
Declaration of interim dividend no 8
The board has declared an interim dividend (dividend no 8) of 100,00 cents per ordinary share
(gross) for the period ended 30 September 2015. The dividend is subject to the Dividends
Withholding Tax ("DWT") that was introduced with effect from 1 April 2012. In accordance with the
provisions of the JSE Listings Requirements, the following additional information is disclosed:
- the dividend has been declared out of current profits available for distribution;
- the local Dividend Tax rate is 15%;
- the gross dividend amount is 100,00 cents per ordinary share for shareholders exempt from DWT;
- the net dividend amount is 85,00 cents per ordinary share for shareholders liable for DWT;
- the company has 8 237 165 ordinary shares in issue;
- the company's income tax reference number is 9100/169/71/4.
The following dates are applicable to the dividend:
The last day to trade in order to be eligible for the dividend will be Friday 8 January 2016.
Shares will trade ex-dividend from Monday 11 January 2016.
The record date will be Friday 15 January 2016 and payment will be made on Monday 18 January 2016.
Share certificates may not be dematerialised/rematerialised between Monday 11 January 2016 and
Friday 15 January 2016, both days inclusive.
Prospects
The board expects the trading conditions for the remaining six months of the year to remain challenging.
ACG Molusi
Independent Non-executive Chairman
26 November 2015
These condensed results have been prepared by the financial director in accordance with
International Financial Reporting Standards ("IFRS"), the Companies Act no. 71 of 2008, as
amended, IAS 34: Interim Financial Reporting, the Listings Requirements of the Johannesburg
Stock Exchange and the SAICA Financial Reporting Guidelines as issued by the Accounting Practices
Committee on a basis consistent with the policies and methods of computation as used in the
annual financial statements for the year ended 31 March 2015.
These results are unaudited.
Michelle Mynhardt (CA/SA)
Financial director
REGISTERED OFFICE
Block A, Oxford Office Park
No. 5, 8th Street, Houghton Estate, Johannesburg, 2198
PO Box 3014, Houghton, 2041
TRANSFER SECRETARIES
Computershare Investor Services (Pty) Limited
Registration number 2004/003647/07
Ground Floor, 70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107
Telephone: +27 11 370 5000
Telefax: +27 11 688 5238
SPONSOR
Arbor Capital Sponsors (Pty) Limited
Registration number 2006/033725/07
Ground Floor, One Health Building, Woodmead North Office Park
54 Maxwell Drive, Woodmead, 2191,
PO Box 62397 Marshalltown, 2107
DIRECTORS
ACG Molusi (Independent Non-executive Chairman)
KL Tlhabane*, MJ Prinsloo*, N Sooka*
M Mynhardt (Executive Financial Director)
AJ Isbister (Executive Director)
(*)Independent Non-executive Director
COMPANY SECRETARY
C Roberts
WWW.AME.CO.ZA
Date: 26/11/2015 02:35:00 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.