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E MEDIA HOLDINGS LIMITED - Reviewed Consolidated Condensed Annual Results for the year ended 31 March 2016

Release Date: 25/05/2016 16:15
Code(s): EMN EMH     PDF:  
Wrap Text
Reviewed Consolidated Condensed Annual Results for the year ended 31 March 2016

eMEDIA HOLDINGS LIMITED
(formerly Seardel Investment Corporation Limited)
Registration number: 1968/011249/06 (Incorporated in the Republic of South Africa)
JSE share code: EMH     IZIN: ZAE000208898
JSE share code: EMN     IZIN: ZAE000209524
("eMedia Holdings" or "the Group")

REVIEWED CONSOLIDATED CONDENSED ANNUAL RESULTS 
FOR THE YEAR ENDED 31 MARCH 2016

The company's shares are listed under the Media sector of the JSE 
Limited.


REVIEWED CONSOLIDATED STATEMENT OF FINANCIAL POSITION



                                                   Reviewed      Audited

                                                   31 March     31 March

                                                       2016         2015

                                                     R000's       R000's

ASSETS

Non-current assets                                7 777 611    7 624 838 

Property, plant and equipment                     1 013 908      886 974 

   Plant and equipment                              356 621      238 285 

   Owner occupied property                          657 287      648 689 

Intangible assets                                 2 676 785    2 750 263 

Goodwill                                          3 774 453    3 737 528 

Equity-accounted investees                          230 912      206 985 

Long-term receivables                                19 206        2 935 

Deferred tax assets                                  62 347       40 153 

Current assets                                    1 140 719    1 166 181 

Inventories                                          17 945       18 090 

Programming rights                                  490 973      431 169 

Trade and other receivables                         493 570      591 536 

Tax assets                                           17 377       12 409 

Cash and cash equivalents                           120 854      112 977 

Assets of disposal groups                           118 492      249 405



Total assets                                      9 036 822    9 040 424 

    

EQUITY AND LIABILITIES    

Total equity                                      7 091 342    7 131 929 

Stated capital/Share capital and share premium    6 762 797    6 665 383 

Reserves                                           (659 675)    (595 481)

Equity attributable to owners of the Company      6 103 123    6 069 902 

Non-controlling interest                            988 220    1 062 027 

Non-current liabilities                             990 175    1 068 963 

Deferred tax liabilities                            549 530      465 531 

Borrowings                                          440 644      501 001 

Share based liabilities                                   -      102 431 

Current liabilities                                 938 790      814 653 

Tax liabilities                                      10 509       12 398 

Current portion of borrowings                       385 352      339 082 

Trade and other payables                            542 133      461 918 

Bank overdraft                                          796        1 255 

Liabilities of disposal groups                       16 515       24 879 



Total liabilities                                 1 945 480    1 908 495 

Total equity and liabilities                      9 036 822    9 040 424 

Net asset value                                   6 103 123    6 069 902 

Net asset value per ordinary share 

after treasury shares (cents)                         1 369        1 406





REVIEWED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE 

INCOME



                                         Reviewed      Audited*            

                                        31 March      31 March                                                           

                                             2016         2015                                                 

                                           R000's       R000's   % change

Continuing operations   

Revenue                                2 431 315     2 390 282       1,7%

Cost of sales                         (1 090 540)     (983 171)     10,9%

Gross profit                           1 340 775      1 407 111      -4,7%

Other income                             108 207        56 721      90,8%

Administrative and other expenses       (927 583)     (868 685)      6,8%

Earnings before interest, taxation, 

depreciation and amortisation          521 399       595 147       -12,4%

Depreciation, amortisation and           

impairments                             (260 927)     (187 365)     39,3%

Operating profit                         260 472       407 782      -36,1%

Finance income                             8 346        14 456     -42,3%

Finance expenses                         (50 936)      (55 305)     -7,9%

Share of profit/(loss) of equity-

accounted investees, net of taxation       7 828          (756)    1135,4%

Profit before taxation                    225 710       366 177      -38,4%

Taxation                                (169 709)     (147 428) 

Profit for the year from 

continuing operations                     56 001       218 749     -74,4%

Discontinued operations   

Loss for the year from discontinued 

operations, net of taxation             (144 815)      (66 579) 

(Loss)/profit for the year                (88 814)      152 170    -158,4%

Other comprehensive income,                                            

net of related taxation   

Items that are or may be reclassified                                   

to profit or loss   

Foreign operations - foreign currency

translation differences                   43 051        22 728  

Reclassification of foreign currency                              

differences on disposal                  (11 600)            -  

Other comprehensive income,                                            

net of taxation                           31 451        22 728  

Total comprehensive (loss)/income                                      

for the year                             (57 363)      174 898  

    

(Loss)/profit attributable to:   

Owners of the Company                    (63 592)      124 813  

Non-controlling interest                 (25 222)       27 357  

                                         (88 814)      152 170  

    

Total comprehensive (loss)/income                                

attributable to:   

Owners of the Company                    (43 655)      139 733  

Non-controlling interest                 (13 708)       35 165  

                                         (57 363)      174 898    

* Restated for discontinued operations   





REVIEWED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY    

                                 Stated  Treasury      Other    Retained

                                Capital    Shares   Reserves      Income

                                  R'000     R'000      R'000       R'000

    

Balance 31 March 2014         1 692 429   (17 794)   213 202     726 226 

Profit                                -         -          -      124 813 

Other comprehensive income                                                

- FCTR                                -         -     14 920           -   

Share incentive scheme                -         -          -       4 174 

Dividends                             -         -          -           -   

Share options                    11 503         -          -     (11 194)

Rights issue                  4 961 451         -          -           -   

Treasury shares                       -    17 794          -     (17 794)

Dividend through demerger             -         -   (212 058) (1 467 924)

Effect of change in ownership                                            

- minority interests                  -         -          -      37 152 

Change in ownership                                                      

- minority interest acquired          -         -          -      (6 998)

Acquisition of subsidiaries                                           

with NCI's                            -         -          -           -   

    

Balance 31 March 2015         6 665 383         -     16 064    (611 545)

Loss                                  -         -          -     (63 592)

Other comprehensive income                                               

- FCTR                                -         -     19 937           -   

Share transaction with                                            

minority shareholders            97 414         -      2 029     (20 394)

Disposal of share interest            -         -          -           -   

Change in ownership                                                      

- minority interest acquired          -         -          -      (2 173)

    

Balance 31 March 2016         6 762 797         -     38 030    (697 705)

    



                                                      Non-                               

                                     Equity    controlling         Total

                                     Owners       Interest        Equity 

                                      R'000          R'000         R'000

    

Balance 31 March 2014             2 614 063      1 230 078     3 844 141 

Profit                              124 813          27 357       152 170 

Other comprehensive income                                               

- FCTR                               14 920          7 808        22 728 

Share incentive scheme                4 174              -         4 174 

Dividends                                 -        (70 192)      (70 192)

Share options                           309              -           309 

Rights issue                      4 961 451              -     4 961 451 

Treasury shares                           -              -             -   

Dividend through demerger        (1 679 982)           179    (1 679 803)

Effect of change in ownership                                            

- minority interests                 37 152       (135 828)      (98 676)

Change in ownership                                                      

- minority interest acquired         (6 998)        (1 002)       (8 000)

Acquisition of subsidiaries                                            

with NCI's                                -          3 627         3 627 

    

Balance 31 March 2015             6 069 902      1 062 027     7 131 929 

Loss                                (63 592)       (25 222)      (88 814)

Other comprehensive income ñ FCTR    19 937         11 514        31 451 

Share transaction with                                            

minority shareholders                79 049        (65 042)       14 007 

Disposal of share interest                -          2 770         2 770 

Change in ownership - minority                                      

interest acquired                    (2 173)         2 173             -   

    

Balance 31 March 2016             6 103 123        988 220     7 091 343





REVIEWED CONSOLIDATED STATEMENT OF CASH FLOW  

                                                   Reviewed      Audited 

                                                   31 March     31 March

                                                       2016         2015

                                                     R000's       R000's

Net cash flow from operating activities              336 152     (418 639)

Net cash used in investing activities              (262 089)    (125 647)

Net cash used in financing activities               (44 660)   1 051 383 

Net change in cash and cash equivalents              29 403      507 097 

Cash and cash equivalents at the                                    

beginning of the year                               130 125     (376 972)

Cash and cash equivalents at the end of the year    159 528      130 125 

  

Cash and cash equivalents                           120 854      112 977 

Bank overdraft                                         (796)      (1 255)

Cash of disposal groups held for sale                39 470       18 403 

Cash and cash equivalents at the end of the year    159 528      130 125





HEADLINE EARNINGS  

                                                    Reviewed     Audited*

                                                    31 March    31 March

                                                        2016        2015

                                                      R000's      R000's

(Loss)/earnings attributable to equity                              

owners of the parent                                 (63 592)    124 813 

IAS 16 gains on disposal of plant and equipment       (4 120)     (1 735)

IAS 16 impairment of plant and equipment               6 640       9 587 

IAS 21 foreign currency translation reserve                   

reclassified to profit or loss                          (7 851)          - 

IAS 28 gain on disposal of associates                 (2 729)    (11 500)

IAS 36 impairment of other assets                      1 458           - 

IAS 38 impairment of intangible assets               100 563           - 

IAS 40 fair value adjustment to investment property        -     (46 792)

IFRS 3 gain on bargain purchase                            -      (1 077)

IFRS 3 impairment of goodwill                          5 238      86 862 

IFRS 10 loss on the loss of control of a subsidiary    1 162           - 

Total tax effect of adjustments                       (4 568)      9 220 

Headline earnings                                     32 199     169 378 

    

* Restated for discontinued operations 





STATISTICS PER SHARE  

                                                    Reviewed     Audited*

                                                    31 March    31 March

                                                        2016        2015

Basic earnings (R'000)  

(Loss)/earnings                                      (63 592)    124 813 

Continuing operations                                 34 429     136 054 

Discontinued operations                              (98 022)    (11 241)

Headline earnings                                     32 199     169 378 

Continuing operations                                 35 057     162 912 

Discontinued operations                               (2 857)      6 466 

Basic earnings per ordinary share (cents)  

(Loss)/earnings                                       (14,47)      30,27 

Continuing operations                                   7,84       32,99 

Discontinued operations                               (22,31)      (2,73)

Headline earnings                                       7,33       41,07 

Continuing operations                                   7,98       39,50 

Discontinued operations                                (0,65)       1,57 

Weighted average number of ordinary shares                              

in issue ("000)                                      439 408     412 400 

Actual number of ordinary shares in issue                               

at end of the period ("000)                          445 738     431 821 

Diluted earnings per ordinary share (cents)  

(Loss)/earnings                                       (14,47)      30,27 

Continuing operations                                   7,84       32,99 

Discontinued operations                               (22,31)      (2,73)

Headline earnings                                       7,33       41,07 

Continuing operations                                   7,98       39,50 

Discontinued operations                                (0,65)       1,57 

Diluted weighted average number of ordinary shares                      

in issue ("000)                                      439 408     412 400 

  

* Restated for discontinued operations 





During the year the Company consolidated its authorized and issued stated 

capital on the basis of 10 to 1 ("Share Consolidation") by:



- the consolidation of every 10 Ordinary Shares of no par value into 1 

Ordinary Share of no par value, and

- the consolidation of every 10 N-Shares of no par value into 1 N-Share 

of no par value. 





NOTES TO THE REVIEWED CONSOLIDATED CONDENSED RESULTS FOR THE YEAR ENDED 

31 MARCH 2016



BASIS OF PREPARATION AND ACCOUNTING POLICIES

The results for the year ended 31 March 2016 have been prepared in 

accordance with International Financial Reporting Standards ("IFRS"), the 

disclosure requirements of IAS 34, the SAICA Financial Reporting Guides 

as issued by the Accounting Practices Committee, the requirements of the 

South African Companies Act, 2008, and the Listing Requirements of the 

JSE Limited. Except for the new standards adopted, the accounting 

policies applied by the group in the preparation of these reviewed 

condensed consolidated financial statements are consistent with those 

applied by the group in its consolidated financial statements as at, and 

for, the year ended 31 March 2015. 



There was no material impact on the financial results identified based on 

management's assessment of the new standards adopted. As required by the 

JSE Limited Listings Requirements, the group reports headline earnings in 

accordance with Circular 2/2015: Headline Earnings as issued by the South 

African Institute of Chartered Accountants.



These financial statements were prepared under the supervision of the 

financial director, AS Lee (CA)SA.





BUSINESS COMBINATIONS

During the year the Group acquired and consolidated 100% of Moonlighting 

Films Proprietary Limited and its subsidiary ("Moonlighting"), effective 

15 December 2015. The total purchase consideration of the shareholding 



was R15.3 million cash-settled (R11.475 million paid at year end and 

R3.825 million paid during April 2016) for 51% plus a further contingent 

consideration fairly valued at R32.053 million for the remaining 49% 

shareholding payable by June 2018 and June 2021.



For the four months ended 31 March 2016, Moonlighting contributed revenue 

of R16.040 million and profit of R9.388 million to the Group's results. 

If the acquisition had occurred on 1 April 2015, contributed revenue and 

profit to the Group would have been R23.465 million and R12.103 million 

respectively.



The following table summarises the consideration paid for Moonlighting 

and the amount of the assets acquired and liabilities assumed recognised 

at acquisition date.  

  

                                                            2016

                                                        Reviewed

                                                           R'000

 

Cash                                                      11 475 

Contingent consideration                                  32 053 

Deferred payment                                           3 825 

Total consideration                                       47 353 

 

Recognised amounts of identifiable assets acquired                     

and liabilities assumed: 

Property, plant and equipment                                 72 

Trade and other receivables                                5 225 

Cash and cash equivalents                                 12 178 

Trade and other payables                                 (15 967)

Taxation payable                                          (1 033)

Total identifiable net (liabilities) / assets                475 

Less: Non-controlling interest                              (212)

Goodwill                                                  47 090 

Total consideration                                       47 353 

 

Cash flow from investing activity 

Cash consideration transferred                           (11 475)

Cash and cash equivalents in the business acquired        12 178 

Net cash inflow from investing operations                    703 







DISCONTINUED OPERATIONS

Following a decision to exit the business of Shibula Lodge and Spa 

Proprietary Limited and Mindset TV Proprietary Limited, the results of 

these operations were reclassified to discontinued operations in the 

statement of comprehensive income and its assets and liabilities 

reclassified to disposal groups held for sale in the statement of 

financial position.



A decision was also taken to dispose of a commercial building at 9 Summit 

Road, Dunkeld West, Johannesburg owned by Sabido Properties Proprietary 

Limited. The value of the building at the lower of its carrying value and 

fair value less costs to sell has been included in disposal groups held 

for sale in the statement of financial position.



Certain subsidiaries of the Longkloof Limited Group, e.Botswana 

Proprietary Limited and e.tv Botswana Proprietary Limited remain 

classified in discontinued operations in the statement of comprehensive 

income and its assets and liabilities remain classified to disposal 

groups held for sale in the statement of financial position as at, and 

for, the year ended 31 March 2016 since exit and sale strategies are 

being finalised.



Discontinued operations as disclosed in the statement of comprehensive 

income consist of the following:



                                         Longkloof  

                                      Subsidiaries               Afrikaans

                               e.tv            and  Learnthings  Satelliet

R'000          e.Botswana  Botswana     associates       Africa         TV

March 2016     

Revenue             4 790         -         26 735        5 608        250

Profit/(loss)                                                         

after tax            (553)        -       (131 187)       1 296    (4 779)

     

March 2015     

Revenue             4 344         -        27 273         2 231         - 

Profit/(loss)                                                        

after tax          (2 042)       -       (156 909)        (803)        - 

     

     

                             Shibula                  Non-media 

                               Lodge        Mindset      assets 

R'000             and Spa         TV         (Deneb)                Total

March 2016     

Revenue                       4 207              -            -    41 590 

Profit/(loss) after tax       (8 368)        (1 224)           -  (144 815)



March 2015     

Revenue                        3 872             -    1 927 457 1 965 177 

Profit/(loss) after tax       (1 345)             -       94 520   (66 579)

     

     

     

                                                                Longkloof

                                                    e.tv     subsidiaries

R'000                              e.Botswana   Botswana   and associates

March 2016     

Assets of disposal group     

Property, plant and equipment             884      2 132                - 

Intangible assets                           -          -           11 629 

Other assets                            3 164         21           60 873 

Total assets                            4 048      2 153           72 502 

     

Liabilities of disposal group     

Other liabilities                        (305)         2          (15 782)

Total liabilities                        (305)         2          (15 782)

     

     

March 2015     

Assets of disposal group     

Property, plant and equipment           1 212      2 233              521 

Intangible assets                           -          -          155 973 

Investment in associates                    -          -           37 091 

Other assets                            2 597         17           49 761 

Total assets                            3 809      2 250          243 346 

     

Liabilities of disposal group     

Deferred taxation liability                 -        (40)          (5 592)

Other liabilities    (282)        2              (18 967)

Total liabilities                        (282)       (38)         (24 559)



     

                                       Sabido  

                                   Properties  

                                  (Building -      Shibula         Lodge

R'000                           9 Summit Road)     and Spa         Total

March 2016     

Assets of disposal group     

Property, plant and equipment          33 860        5 532        42 408 

Intangible assets                           -            -        11 629 

Other assets                                -          397        64 455 

Total assets                           33 860        5 929       118 492 

 

    

Liabilities of disposal group     

Other liabilities                           -         (430)      (16 515)

Total liabilities                           -         (430)      (16 515)

     

     

March 2015     

Assets of disposal group     

Property, plant and equipment               -            -         3 966 

Intangible assets                           -            -       155 973 

Investment in associates                    -            -        37 091 

Other assets                                -            -        52 375 

Total assets                                -            -       249 405 

     

Liabilities of disposal group     

Deferred taxation liability                 -            -        (5 632)

Other liabilities                           -            -       (19 247)

Total liabilities                           -            -       (24 879)



CHANGE IN COMPARATIVES 

The results of discontinued operations have been separately disclosed 

on the face of the statement of comprehensive income. 





RELATED PARTY TRANSACTIONS

During the year, in the ordinary course of business, certain companies 

within the group entered into transactions with one another. These intra-

group transactions have been eliminated on consolidation.



Transactions with Hosken Consolidated Investments Limited ("HCI") 

(ultimate holding company), entities in which HCI has an interest, Remgro 

Limited ("Remgro") (shareholder in eMedia Investments Proprietary 

Limited), and Venfin Media Investments Proprietary Limited ("Venfin") (a 

wholly-owned subsidiary of Remgro) are included in the following table:



                                                         2016       2015

                                                     Reviewed    Audited

                                                        R'000      R'000

  

Income / (expense) transaction values with                          

related parties   

  

Media assets  

HCI - management fees paid                            (14 915)   (14 205)

HCI - internal audit service fee                         (340)         -   

Venfin - management fees paid                          (1 689)    (1 608)

Longkloof Limited - management fees received                -      1 331 

Interest income - interest bearing loans to employees     139        117 

Interest income - unwinding of employee loans                           

at 0% interest                                          1 028        958 

SACTWU - loan relating to the                                    

acquisition of Sabido                                       -     (5 987)

HCI - preference shares relating to the                           

acquisition of Sabido                                       -    (13 972)

  

Unbundled assets  

SACTWU - disposal of apparel                                   

manufacturing operation                                     -      5 312 

HCI - fees for managerial and secretarial paid              -     (2 800)

HCI - working capital loan advanced                         -     (1 943)

HCI - loan at prime, repayable on demand                    -      3 245 

Formex Industries (subsidiary of HCI)                                    

- management fees received                                  -        864 

HCI - fees for risk management received                     -        261 



  

                                                         2016       2015

                                                     Reviewed    Audited

                                                        R'000      R'000

Balances owing (to) by related parties  

  

Media assets  

HCI - working capital loan                             (8 602)    (8 602)

Venfin - loan relating to the acquisition                               

of Longkloof Limited                                 (156 605)  (156 605)

Cape Town Film Studios - associate loan                95 442     71 786 

Dreamworld Management Company - associate loan         11 182     10 624 

Global Media Alliance Broadcasting Limited                               

- associate loan                                            -     73 772 

Employees of the Group - loans relating to                         

company shares held by employees                       19 205     10 251 





AUDITOR'S REVIEW

These condensed consolidated financial statements for the year ended 31 

March 2016 have been reviewed by Grant Thornton Johannesburg Partnership, 

who expressed an unmodified review conclusion. The auditor's report does 

not necessarily report all of the information contained in this 

announcement of the financial results. Shareholders are therefore advised 

that in order to obtain a full understanding of the engagement they 

should obtain a copy of the auditor's report together with the 

accompanying financial information from the issuer's registered office. A 

copy of the auditor's review report is available for inspection at the 

company's registered office together with the financial statements 

identified in the auditor's report.





CHANGE OF NAME

The company changed its name from Seardel Investment Corporation Limited 

to eMedia Holdings Limited with effect from 29 October 2015.





DIVIDEND TO SHAREHOLDERS

The directors have resolved not to declare a dividend for the year ended 

31 March 2016 (2015: Nil).





COMMENTARY



GROUP

The Group's only asset is eMedia Investments, an investment holding 

company with various investments in the media industry. eMedia 

Investments houses e.tv (Pty) Ltd ("e.tv"), eSat.tv (Pty) Ltd ("eNCA"), 

Yired (Pty) Ltd ("Yfm") and Sasani Africa (Pty) Ltd ("Sasani Studios"), 

amongst others. 



During the year, the company increased its holding in eMedia Investments 

from 63.9% to 67.7% by purchasing the shares of all minority shareholders 

other than Venfin Media Bellegings. This was settled by the issue of 

eMedia Holdings "N" shares to the minorities of eMedia Investments. 



The group ended the year with a loss attributable to the equity owners of 

the company of R63.6 million compared to a profit in the previous year of 

R124.8 million. The loss takes into account a loss of R144.8 million for 

discontinued operations. The Group has continued disinvesting from non-

core assets. Also included in the net loss is the amortisation of 

intangibles resulting from the acquisition of eMedia Investments and a 

deferred tax charge which relates to the change in the inclusion rate of 

capital gains tax on the PPA raised on the acquisition of eMedia 

Investments. This amounted to R80.3 million and R75.6 million 

respectively for the year under review. The Group ended on an EBITDA of 

R521.4 million compared to R595.1 million in the prior year. Headline 

earnings for the Group ended on R32.2 million compared to R169.4 million 

the prior year.  

 

e.tv

The financial year has been a difficult one for the Group with revenue in 

its core asset, e.tv, coming under continual pressure. Despite this, 

revenue for the Group ended the year on R2.43bn compared to the prior 

year R2.39bn, a 1.7% increase. As mentioned, the core asset, e.tv, saw 

advertising revenue under pressure as a result of a sharp drop in market 

share in the previous financial year. This necessitated that management 

review the schedule of e.tv and implement changes to correct the falling 

market share. These changes were implemented in the latter half of the 

2015 financial year and the first part of this financial year. It has 

seen the market share of e.tv recover, once again becoming the most 

watched English channel in South Africa. The recovery, however, came at 

considerable investment in local programming, which resulted in cost of 

sales ending the year on R1.09bn compared to R983 million the previous 

year, an increase of 10.9%. This investment was necessary and with the 

market share of e.tv now stable for the latter part of the financial 

year, advertising revenue should once again be more reflective of market 

share. 



Multi-channel, OpenView HD and Digital Terrestrial Television

Added to the pressure on revenue has been the continued investment into 

the multi-channel business. With Digital Terrestrial Televisions ("DTT") 

continuing its slow rollout, e.tv struggles as a lone channel in an ever 

increasing multi-channel environment. The Group continues to invest in 

its multi-channel platform, OpenView HD ("OVHD") and producing channels 

for the multi-channel environment. Further investment of R261.9 million 

(2015: R245.1 million) is included in the financials for this year with 

very little revenue recorded. On a more positive note, OVHD has seen the 

number of activations increase from 112 715 to 388 812 at the end of the 

financial year, an increase of 245%. Management believes that the 

investment in quality channels and a multi-channel platform will stand 

the Group in good stead when the DTT rollout ramps up.



The litigation matter between e.tv and The Minister of Communications and 

Others regarding the Broadcasting Digital Migration policy and whether 

government-funded set top boxes should be encrypted or not was heard in 

the Supreme Court of Appeal on 9 May 2016.  We expect a judgment before 

the end of the first quarter of the financial year.



eSat.tv

eSat.tv continues to perform well and the eNCA channel remains the most 

watched news channel on DStv with a share of over 50% of the viewership 

of all news channels. The long term contract with DStv is terminable in 

May 2016, but all indications are that DStv would like to enter into a 

new agreement to keep the news channel on its platform. It should however 

be noted that a new deal with DStv will not see the current performance 

of eSat.tv be sustainable going forward.



Other assets, core and non-core

The financial year has seen strong performances from subsidiaries, 

Sasani Studios, Silverline 360 and Yfm.



The financial year also saw management take a strategic look at the 

future of the Group. With this in mind, management decided to exit any 

non-core and non-profitable investments. This resulted in R144.8 million 

being reflected as a loss from discontinued operations. The Group has all 

but exited from its offshore investments and will for the near future 

concentrate on its core South African assets with ever-increasing 

competition from non-linear broadcasting platforms. Also included in the 

results is the impairment of a loan receivable of R48.2 million for the 

sale of The Africa Channel (UK) as the purchaser has failed to deliver on 

payment. 



These "once-off" factors, together with the struggles in revenue, have 

had a negative impact on the results of the Group. Management however 

believes that with the stabilisation of the e.tv market share, the 

continued investment in the multi-channel business and the continued need 

for content, the Group is poised to achieve better results going forward.



Signed for and on behalf of the board on 25 May 2016.



T G Govender                                

Acting Chief Executive Officer    



A S Lee

Financial Director





CORPORATE INFORMATION

Registration number: 1968/011249/06 (Incorporated in the Republic of 

South Africa)

JSE share code: EMH      IZIN: ZAE000208898

JSE share code: EMN      IZIN: ZAE000209524

Registered office: 5 Summit Road, Dunkeld West, Johannesburg, 2194

Directors: J A Copelyn* (Chairman), T G Govender (Acting Chief Executive 

Officer), A S Lee (Financial Director), E Mphande*^, L Govender*^, R D 

Watson*^ (* Non-executive^ Independent)

Company secretary: Junadi Van Der Merwe

Transfer secretaries: Computershare Investor Services Proprietary 

Limited, 70 Marshall Street, Johannesburg, 2001

PO Box 61051, Marshalltown. 2107

Auditors: Grant Thornton Johannesburg Partnership

Sponsors: Investec Bank Limited








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