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UNAUDITED CONDENSED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 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")
UNAUDITED CONDENSED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2015
Condensed Group Statement of Comprehensive Income
Unaudited Unaudited Audited
6 months 6 months 12 months
31-Dec-15 31-Dec-14 30-Jun-15
R'000 R'000 R'000
Revenue 14 533 14 403 25 501
(Loss)/profit before investment income,
fair value adjustments, depreciation,
amortisation, impairments and exchange
gains/(losses) (3 541) 245 (4 044)
Depreciation and amortisation (144) (182) (332)
Investment income 585 329 1 235
Bank interest 52 182 302
Finance charges - - (10)
Fair value adjustment of other investment and
other financial asset - - (243)
Foreign exchange gains/(losses) 33 (8) 3
Profit on write-off of tangible assets - 7 -
Net (loss)/profit before taxation (3 015) 573 (3 089)
Taxation 14 (60) 72
Net (loss)/profit for the period (3 001) 513 (3 017)
Other comprehensive income - - -
Total comprehensive (loss)/profit for the
period (3 001) 513 (3 017)
Basic and diluted (loss)/earnings per share
(cents) (2.81) 0.48 (2.83)
Weighted average number of shares in issue
106 575 106 575 106 575
(000’s)
Reconciliation of headline (loss)/profit
Net (loss)/profit for the period (3 001) 513 (3 017)
(Profit) on write-off of tangible assets - (7) -
Headline (loss)/earnings (3 001) 506 (3 017)
Basic and diluted headline loss per share (cents) (2.81) 0.48 (2.83)
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-15 31-Dec-14 30-Jun-15
Assets R'000 R'000 R'000
Non-current assets
Tangible fixed assets 536 432 620
Investment in joint venture 13 13 13
Other investment 34 32 34
Deferred taxation 252 106 237
Other financial asset 1 082 - 1 082
1 917 583 1 986
Current assets
Trade and other receivables 3 353 3 727 3 127
Other financial asset 14 171 19 007 18 587
Cash and cash equivalents 3 409 6 778 3 696
20 933 29 512 25 410
Total assets 22 850 30 095 27 396
Equity and liabilities
Capital and reserves
Share capital and premium 32 732 32 732 32 732
Accumulated loss (13 263) (6 732) (10 262)
Ordinary shareholders’ interest 19 469 26 000 22 470
Current liabilities
Trade and other payables 2 930 3 389 4 008
Taxation 10 10 10
Deferred revenue 441 696 908
3 381 4 095 4 926
Total equity and liabilities 22 850 30 095 27 396
Net asset value per share (cents) 18.3 24.4 21.1
Net tangible asset value per share (cents) 18.3 24.4 21.1
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 2014 107 32 625 (7 245) 25 487
Total comprehensive loss for
the year ended 30 June 2015 - - (3 017) (3 017)
Balance at 30 June 2015 107 32 625 (10 262) 22 470
Total comprehensive loss for
the period ended 31 December
2015 - - (3 001) (3 001)
Balance at 31 December 2015 107 32 625 (13 263) 19 469
Condensed Group Statement of Cash Flow
Unaudited Unaudited Audited
6 months 6 months 12 months
31-Dec-15 31-Dec-14 30-Jun-15
R'000 R'000 R'000
Net cash (outflows)/inflows from operating
activities (227) 1 090 (1 665)
Net cash outflows from investing activities (60) (61) (407)
Cash and cash equivalents at end of period 3 409 6 778 3 696
Financial results
Moneyweb’s revenue had a negligible increase when compared with the previous 6-month
period. Comparing the previous 6 months’ revenue with the current 6 months, the
revenue from our radio platforms was R907k down and for our mining website
(www.mineweb.com) R1.09m down. Revenue from our investments made, as stated in the
paragraph below, supplemented this shortfall in revenue.
With the investment in human capital and the drive to diversify revenue streams the
expense base of Moneyweb has increased. In the current period Moneyweb invested
R1.26m in its video production business, R238k in its Moneyweb Drive magazine and
spent R1.12m on events which include The Money Expo. These expenses plus extra
editorial costs to produce the Investor magazine on top of the unchanged cost base
led to the operating loss of R3.541 for the first 6 months of the financial year. In
spite of the loss, the different areas of investment have created diversified
revenue streams which are now in a position to be exploited.
It was decided not to raise a deferred tax asset based on the loss and this position
will be reviewed at financial year-end. Cash flows have come under pressure due to
the higher cost base. Moneyweb however remains debt free and has liquid cash
reserves of R17.580m.
Operating results
The company generated revenue of R14.533 million and a net loss of R3.001m over the
6-month period.
Moneyweb’s core digital advertising business has come under pressure in the last six
months, and advertising sales on our radio platforms have also been disappointing.
We are a provider of premium content and we have not joined the digital advertising
trend towards highly discounted programmatic advertising.
Our operating issues were further compounded by a collapse in the mining sector,
which negatively impacted our Mineweb business.
We took a strategic decision in 2015 to invest heavily in new products and platforms
to allow us to move away from an advertising model. This saw us invest in new
businesses including:
- Adlip Video production business (profitable)
- The Money Expo 2015 (profitable and to be repeated in 2016)
- Launching of the Investor digital magazine (profitable)
- Events including a roundtable series and Trading Trivia
- Wealthy Ever After financial education course
- Subscription and e-commerce business
- Moneyweb DRIVE (Unprofitable and closed in 2015)
The investment saw a temporary increase in costs, but these have been contained and
we have focused on bringing overall costs back into line, which has now been
achieved.
Litigation
We are still awaiting the outcome of the copyright case against Media24 and Fin24.
Judgment is anticipated in the near future.
Prospects
While the operating environment remains tough, we have a number of positives to look
forward to in 2016.
Our investment in our video production business has yielded dividends and is
consistently delivering operating profits. We expect this to continue and become a
bigger part of our earnings mix going forward.
Critically we have secured further airtime for our radio shows and these will
contribute to our earnings from April 2016. There is a renewed focus on radio
revenue and a major drive to increase it significantly.
Our introduction of a subscription and e-commerce model in January 2016 has
introduced an element of annuity revenue into our business and allows us to better
monetise our audience of 750 000+ users across our platforms. Our costs have been
reduced, following a temporary increase from our investment in new products.
We are pleased to see that our decision not to discount advertising rates and to
maintain our premium content philosophy is yielding the desired outcomes.
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 2015 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 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.
On Behalf of the Board
PM Jenkins
Executive Chairman
11 March 2016
Corporate Information
Non-executive directors: LW Sipoyo*; SJ Gordon*; AJ Isbister; BN Sturgeon*;
WP van der Merwe*; VW Mcobothi*
*Independent non-executive director
Executive directors: PM Jenkins (Chairman); MJ Ashton; P Meyer
Registered address: Number 5, 8th Street, Houghton Estates, 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: 11/03/2016 05:21:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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