Wrap Text
Unaudited Consolidated Condensed Interim Results for the six months ended 30 September 2016
EMEDIA HOLDINGS LIMITED
The company's shares are listed under the Media Sector of the JSE.
Registration number: 1968/011249/06
JSE Share Codes
Ordinary Shares: EMH IZIN: ZAE000208898
N Ordinary Shares: EMH IZIN: ZAE000209524
Unaudited Consolidated Condensed Interim Results
for the six months ended 30 September 2016
COMMENTARY
The period under review resulted in the Group ending the period showing a profit from
continuing operations of R103.2 million compared to a profit of R123.2 million, in
the prior period. It should however be noted that the prior period's figure included
a once-off gain of R88.5 million as a result of the derecognition of the share based
payment liability arising from forfeited options. If one excludes this "once-off"
profit the year-on-year increase would be 197%. Also included in the profit, are the
losses attributable to the continued investment into the multi-channel business
(OpenView HD and e.tv multichannel) of R136.9 million compared to R112.2 million
in the prior year. Box activations have however increased significantly and at
30 September 2016, 538 706 boxes were activated compared to 388 812 boxes for the
prior period. EBITDA for the Group ended the period on R277.8 million compared to
R257.4 million for the prior period, an increase of 7.9% year-on-year. The Group's
only asset is a 67.7% stake in eMedia Investments Proprietary Limited ("Media
Investments").
EMEDIA INVESTMENTS
The six-month period ended 30 September 2016 has seen the market share of e.tv
remain constant and has shown an improvement in the key revenue drivers of LSM 5
to 7 and LSM 8 to 10 on the flagship channel, e.tv. This has seen e.tv's revenue
increase by 10% year-on-year. A shift to include “high-end" international series
and movies and recent deals concluded with Warner and Disney have assisted in
clawing back and maintaining the market share that had been lost previously. Costs
are being well maintained in the business and e.tv has shown a good recovery from
its previous position. e.tv has approached ICASA for an amendment to its licence
conditions in which it has requested that the 30 minute news bulletin be allowed to
be scheduled outside of Prime Time. The matter was set down for a public hearing
on 25 October 2016. As previously reported, litigation was instituted against The
Minister of Communications and Others regarding the Broadcasting Digital Migration
policy which will have an impact on DTT. Although e.tv lost the application, leave
to appeal was granted and e.tv won the appeal at the Supreme Court of Appeal. The
losing respondents have referred the matter to the Constitutional Court for a final
determination. The matter will be heard during the latter part of February 2017.
eSat.tv (eNCA) continues to perform well and continues to be the most watched 24-hour
news station on DStv with over 50% market share. The current agreement with DStv was
terminable on 31 May 2016. However DStv did not give notice. Notwithstanding this,
negotiations are however underway to conclude a new agreement and this should be in
place before the end of the financial year.
As mentioned, included in the results are losses of R136,9 million from the
continued investment into the multi-channel businesses from which very little
revenue is currently being derived. The OpenView HD platform has increased its
viewership capacity by more than 149 894 boxes activated for the six-month period.
Activations are approximately 25 000 to 30 000 boxes per month with a total active
boxes of 538 706. With this ever-improving rollout and when DTT starts, the Group
will be in a good position to increase its revenue base.
Certain of the Group's other subsidiaries have performed satisfactorily for the six-
month period. These include Sasani Africa, Silverline 360 and Strika Entertainment.
Management continues to review the non-core and peripheral businesses and will
exit these businesses when opportunities present themselves. During the current
period, the sale of Power Entertainment, TVPC Media and Shibula Lodge was completed
and negotiations are underway for the sale of eBotswana. Also sold was one of
the properties in the Group, 9 Summit Road, Dunkeld West as it became surplus to
requirements. Despite the challenging economic environment, management looks forward
to a fruitful six months going forward.
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
30 September 30 September 31 March
2016 2015 2016
R000's R000's R000's
ASSETS
Non-current assets 7 703 468 7 767 508 7 777 611
Property, plant and equipment 993 942 1 046 905 1 013 908
Plant and equipment 343 286 356 619 356 621
Owner occupied property 650 656 690 286 657 287
Intangible assets 2 628 304 2 718 368 2 676 785
Goodwill 3 776 769 3 737 528 3 774 453
Equity-accounted investees 231 637 207 459 230 912
Long-term receivables 17 214 10 014 19 206
Deferred tax assets 55 602 47 234 62 347
Current assets 1 492 379 1 382 541 1 140 719
Inventories 18 477 18 461 17 945
Programming rights 691 906 612 032 490 973
Trade and other receivables 577 187 603 697 493 570
Current tax assets 17 689 35 203 17 377
Cash and cash equivalents 187 120 113 148 120 854
Assets of disposal groups 11 763 234 735 118 492
Total assets 9 207 610 9 384 784 9 036 822
EQUITY AND LIABILITIES
Total equity 7 170 029 7 325 774 7 091 343
Stated capital 6 762 797 6 762 797 6 762 797
Treasury shares (3 230) - -
Reserves (611 538) (497 025) (659 674)
Equity attributable to owners of the Company 6 148 029 6 265 772 6 103 123
Non-controlling interest 1 022 000 1 060 002 988 220
Non-current liabilities 992 164 964 526 990 175
Deferred tax liabilities 535 152 460 010 549 530
Borrowings 457 012 504 516 440 644
Current liabilities 1 044 700 1 072 143 938 790
Current tax liabilities 12 000 3 937 10 509
Current portion of borrowings 342 613 373 878 385 352
Trade and other payables 689 173 692 694 542 133
Bank overdraft 915 1 634 796
Liabilities of disposal groups 716 22 341 16 515
Total liabilities 2 037 581 2 059 010 1 945 480
Total equity and liabilities 9 207 610 9 384 784 9 036 822
Net asset value 6 148 030 6 265 772 6 103 123
Net asset value per share after
treasury shares (cents) 1 381 1 406 1 369
UNAUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
6 Months 6 Months* Audited
30 September 30 September 31 March
2016 2015 2016
R000's R000's % change R000's
Continuing operations
Revenue 1 266 149 1 137 719 11,3% 2 431 315
Cost of sales (557 209) (527 706) 5,6% (1 090 540)
Gross profit 708 940 610 013 16,2% 1 340 775
Other income 27 458 98 955 -72,3% 108 207
Administrative and
other expenses (458 610) (451 660) 1,6% (927 583)
Earnings before interest,
taxation, depreciation
and amortisation 277 788 257 368 7,9% 521 399
Depreciation, amortisation
and impairments (95 869) (95 409) 0,5% (260 927)
Operating profit 181 919 161 959 12,3% 260 472
Finance income 5 270 2 916 80,8% 8 346
Finance expenses (28 299) (21 892) 29,3% (50 936)
Share of profit of
equity-accounted investees,
net of taxation 1 799 1 024 -75,7% 7 828
Profit before taxation 160 689 144 007 11,6% 225 710
Taxation (57 440) (20 850) (169 709)
Profit for the period from
continuing operations 103 249 123 157 -16,2% 56 001
Discontinued operations
Profit/(loss) for the period
from discontinued operations,
net of taxation 28 227 (9 471) (144 815)
Profit/(loss) for the period 131 476 113 686 15,6% (88 814)
Other comprehensive income, net
of related taxation
Items that are or may be reclassified
to profit or loss
Foreign operations - foreign
currency translation differences 5 231 66 153 43 051
Reclassification of foreign
currency differences on disposal (65 049) - (11 600)
Other comprehensive (loss)/income,
net of taxation (59 818) 66 153 31 451
Total comprehensive income/(loss)
for the period 71 658 179 839 (57 363)
Profit/(loss) attributable to:
Owners of the Company 88 626 75 158 (63 592)
Non-controlling interest 42 850 38 528 (25 222)
131 476 113 686 (88 814)
Total comprehensive income/(loss)
attributable to:
Owners of the Company 48 137 118 585 (43 655)
Non-controlling interest 23 521 61 254 (13 708)
71 658 179 839 (57 363)
*6 Months ended 30 September 2015 restated for discontinued operations
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Stated Treasury Other Retained
Capital Shares Reserves Income
R000's R000's R000's R000's
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 (697 704)
Profit - - - 88 626
Other comprehensive income - FCTR - - (40 489) -
Share buyback - (3 230) - -
Disposal of share interest - - - -
Balance 30 September 2016 6 762 797 (3 230) (2 460) (609 078)
Equity Non-controlling Total
Owners Interest Equity
R000's R000's R000's
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 - 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
Profit 88 626 42 850 131 476
Other comprehensive income - FCTR (40 489) (19 330) (59 819)
Share buyback (3 230) - (3 230)
Disposal of share interest - 10 260 10 260
Change in ownership -
minority interest acquired - - -
Balance 30 September 2016 6 148 029 1 022 000 7 170 029
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOW
Unaudited Unaudited Audited
30 September 30 September 31 March
2016 2015 2016
R000's R000's R000's
Cash flows from operating activities
Cash generated from operating activities 160 935 281 578 489 430
Net finance costs (23 028) (18 976) (42 590)
Taxation paid (63 894) (64 912) (110 688)
Net cash inflow from operating activities 74 013 197 690 336 152
Cash flow from investing activities
Acquisition of property, plant and equipment (37 181) (215 130) (308 523)
Proceeds from sale of property,
plant and equipment 35 237 6 212 18 060
Additions to intangible assets (9 322) (19 922) (29 726)
Movement in financial assets 1 426 (2 851) 20 939
Movement in equity accounting investees (5 910) (474) (6 070)
Acquisition of subsidiary,
net of cash acquired (3 749) - (703)
Net cash flows of discontinued operations 1 378 - 42 930
Dividends received from equity
accounting investees 1 375 - 1 004
Net cash outflow from investing activities (16 746) (232 165) (262 089)
Cash flow from financing activities
Net change in borrowings (repaid)/raised (26 372) 38 311 (43 259)
Change in non-controlling interest (63) (1 401) (1 401)
Net cash outflow/(inflow) from
financing activities (26 435) 36 910 (44 660)
Net change in cash and cash equivalents 30 832 2 435 29 403
Cash and cash equivalents at beginning
of the year 159 528 130 125 130 125
Cash and cash equivalents at end of the year 190 360 132 560 159 528
Cash and cash equivalents comprise the following
Cash and cash equivalents 191 275 134 194 160 324
Bank balances 187 120 113 148 120 854
Cash in disposal group assets held
for sale 4 424 19 485 32 904
Exchange differences in cash
and cash equivalents (269) 1 561 6 566
Bank overdrafts (915) (1 634) (796)
190 360 132 560 159 528
EARNINGS, DILUTED AND HEADLINE EARNINGS PER SHARE
Unaudited Unaudited*
Gross Net
R000's R000's
For the period ended 30 September 2016
Earnings attributable to equity owners of the parent 88 627
IAS 16 gains on disposal of plant and equipment (1 201) (865)
IAS 21 foreign currency translation reserve
reclassified to profit or loss (44 030) (44 030)
IFRS 10 loss on the loss of control of a subsidiary 20 727 20 727
Headline earnings 64 459
For the period ended 30 September 2015*
Earnings attributable to equity owners of the parent 75 158
IAS 16 impairment of plant and equipment (980) (980)
IAS 16 loss on disposal of plant and equipment 3 995 3 151
IAS 28 gain on disposal of associates (3 199) (3 199)
Headline earnings 74 130
Unaudited Unaudited*
30 September 30 September
2016 2015
Basic earnings (R000's)
Earnings 88 627 75 158
Continuing operations 69 521 82 202
Discontinued operations 19 106 (7 044)
Headline earnings 64 459 74 130
Continuing operations 68 656 84 373
Discontinued operations (4 198) (10 243)
Basic earnings per share (cents)
Earnings 19,88 17,36
Continuing operations 15,60 18,98
Discontinued operations 4,29 (1,63)
Headline earnings 14,46 17,12
Continuing operations 15,40 19,48
Discontinued operations (0,94) (2,37)
Weighted average number of shares in issue ('000) 445 738 433 045
Actual number of shares in issue at end of the period 445 233 445 738
Diluted earnings per share (cents)
Earnings 19,88 17,36
Continuing operations 15,60 18,98
Discontinued operations 4,29 (1,63)
Headline earnings 14,46 17,12
Continuing operations 15,40 19,48
Discontinued operations (0,94) (2,37)
Diluted weighted average number of shares in issue ('000) 445 738 433 045
* 6 Months ended 30 September 2015 restated for discontinued operations
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED RESULTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2016
BASIS OF PREPARATION
The unaudited consolidated condensed results for the six-months ended September 2016
have been prepared in accordance with International Financial Reporting Standards
(IFRS), the disclosure requirements of IAS 34: Interim Financial Reporting, the
SAICA Financial Reporting Guides as issued by the Accounting Practices Committee,
the requirements of the South African Companies Act, 2008 and the Listings
Requirements of the JSE Limited. These results do not include all the information
required for a complete set of IFRS financial statements. However, selected
explanatory notes are included to explain events and transactions that are
significant to an understanding of the changes in the Group's financial position and
performance since the last annual consolidated financial statements as at, and for,
the year ended 31 March 2016.
These results have been prepared under the supervision of the Financial Director,
AS Lee (CA) SA, and have not been audited or reviewed by the Group's auditors, Grant
Thornton Johannesburg Partnership.
SIGNIFICANT ACCOUNTING POLICIES
The unaudited consolidated condensed results have been prepared under the historical
cost convention, except for the revaluation of financial instruments. The accounting
policies adopted are consistent with those followed in the preparation
of the Group's annual financial statements for the year ended 31 March 2016.
STATED CAPITAL
On 30 September 2016, the Company repurchased 504 227 N ordinary shares which are
being treated as treasury shares.
DISCONTINUED OPERATIONS
A decision was taken to exit TVPC Media Proprietary Limited ("TVPC") during the
period, effective 1 July 2016. The results of TVPC was reclassified to discontinued
operations in the statement of comprehensive income.
Operations reported as discontinuing at 31 March 2016 included Power Entertainment
Limited and its subsidiaries (wholly-owned subsidiary of the Longkloof Limited
Group), e.tv Beijing Limited (an 80% subsidiary of the Longkloof Limited Group) and
Shibula Lodge and Spa Proprietary Limited (wholly-owned subsidiary) have been sold
effective 1 July 2016, 30 September 2016 and 31 July 2016 respectively.
The operations that remain classified as discontinuing includes Africa Media Group
(wholly-owned subsidiary of Longkloof Limited Group), Media Film Service
Incorporated and its subsidiary (wholly-owned subsidiary of Longkloof Limited Group)
and e.tv China Limited (an 80% subsidiary of Longkloof Limited Group). e.Botswana
Proprietary Limited (a 49% subsidiary) and e.tv Botswana Proprietary Limited (an 80%
subsidiary) also remain classified as discontinuing.
Discontinued operations as disclosed in the statement of comprehensive income
consist of the following:
Unaudited Unaudited Audited
30 September 30 September 31 March
2016 2015 2016
R000's R000's R000's
Revenue
Longkloof Limited Group 3 303 11 520 26 735
e.Botswana Proprietary Limited 1 596 2 585 4 790
TVPC Media Proprietary Limited 749 2 619 -
Shibula Lodge and Spa Proprietary Limited 363 1 913 4 207
Other - - 5 858
Total revenue 6 011 18 637 41 590
Profit/(loss) from discontinued operations
Longkloof Limited Group 29 383 (3 301) (131 188)
e.Botswana Proprietary Limited (544) (315) (554)
TVPC Media Proprietary Limited 340 (965) -
Shibula Lodge and Spa Proprietary Limited (952) (816) (8 368)
Other - (4 073) (4 705)
Total profit/(loss) 28 227 (9 470) (144 815)
Disposal groups held for sale as disclosed in the statement of financial position
comprise the following:
Property, plant Intangible Other Total
equipment assets assets assets
Assets R000's R000's R000's R000's
30 September 2016
Longkloof Limited Group - - 6 465 6 465
e.Botswana Proprietary Limited 784 - 2 629 3 413
e.tv Botswana Proprietary Limited 1 865 - 20 1 885
Total assets 2 649 - 9 114 11 763
30 September 2015
Longkloof Limited Group 1 050 174 577 52 581 228 208
e.Botswana Proprietary Limited 1 009 - 3 226 4 235
e.tv Botswana Proprietary Limited 2 270 - 22 2 292
Total assets 4 329 174 577 55 829 234 735
31 March 2016
Longkloof Limited Group - 11 629 60 873 72 502
e.Botswana Proprietary Limited 884 - 3 163 4 047
Shibula Lodge and Spa Proprietary Limited 5 532 - 397 5 929
Other 35 993 - 21 36 014
Total assets 42 409 11 629 64 454 118 492
Total
liabilities
Liabilities R000's
30 September 2016
Longkloof Limited Group (702)
e.Botswana Proprietary Limited (14)
Total liabilities (716)
30 September 2015
Longkloof Limited Group (21 862)
e.Botswana Proprietary Limited (437)
e.tv Botswana Proprietary Limited (42)
Total liabilities (22 341)
31 March 2016
Longkloof Limited Group (15 782)
e.Botswana Proprietary Limited (303)
Shibula Lodge and Spa Proprietary Limited (430)
Total liabilities (16 515)
BUSINESS COMBINATIONS
During the period ended 30 September 2016 the Group acquired and consolidated 100%
of Waterfront Film Studios Proprietary Limited, effective 1 July 2016. All the
risks and rewards have been transferred to the Group as 100% of the issued shares
was acquired. The purchase consideration of the shareholding was R7.5 million.
Impact of acquisition on the results of the Group
Revenue and losses included in the results since the date of acquisition amounted
to R3.091 million and R1.796 million respectively. Revenue and losses which would
have been included in the results, had the acquisition date been on the first day of
the financial period, amounts to R9.576 million and R3.314 million.
Identifiable assets acquired and liabilities assumed
The following table summarises the amount of the assets acquired and liabilities
assumed recognised at the acquisition date:
Unaudited
30 September
2016
R000's
Cash 3 749
Deferred payment 3 751
Total consideration 7 500
Recognised amounts of identifiable assets acquired and liabilities assumed:
Property, plant and equipment 9 614
Financial liabilities (non-current) (2 510)
Financial liabilities (current) (1 920)
Total identifiable net liabilities 5 184
Goodwill 2 316
Total consideration 7 500
Cash flow from investing activity
Cash consideration transferred (3 749)
Cash and cash equivalents in the business acquired -
Net cash outflow from investing operations (3 749)
RELATED PARTIES
Group entities entered into various transactions with related parties, in the
ordinary course of business, on an arm's-length basis. The nature of related party
transactions is consistent with those reported previously, as at 31 March 2016.
CHANGE IN COMPARATIVES
The results of discontinued operations have been separately disclosed on the face of
the statement of comprehensive income.
CHANGES IN DIRECTORATE AND COMPANY SECRETARIAL
There were no changes to the directorate during the period.
DIVIDEND TO SHAREHOLDERS
The directors have resolved not to declare an interim dividend for the period ended
30 September 2016.
On behalf of the board
T G Govender A S Lee
Acting Chief Executive Officer Financial Director
Cape Town
23 November 2016
CORPORATE INFORMATION
eMedia Holdings Limited
The company's shares are under the Media Sector of the JSE.
COMPANY REGISTRATION NUMBER
1968/011249/06
JSE SHARE CODES
Ordinary Shares: EMH IZIN: ZAE000208898
N ordinary Shares: EMH IZIN: ZAE000209524
REGISTERED OFFICE
5 Summit Road
Dunkeld West
Hyde Park, 2196
Private Bag X9944
Sandton, 2146
Telephone: (011) 537 9300
DIRECTORS
Executive Directors
Antonio Lee (Financial Director)
Kevin Govender (Acting Chief Executive Officer)
Non-Executive Directors
John Anthony Copelyn (Chairman)
Loganathan Govender #
Velaphi Ellias Mpande #
Rachel Watson #
# Independent
AUDITORS
Grant Thornton Johannesburg Partnership
Practice Number 903485
@Grant Thornton
Wanderers Office Park
52 Corlett Drive
Illovo, 2196
Private Bag x10046
Sandton, 2146
COMPANY SECRETARY
Junadi van der Merwe
BANKERS
Standard Bank of South Africa
SPONSOR
Investec Bank Limited
100 Grayston Drive
Sandton, Sandown, 2196
TRANSFER SECRETARIES
Computershare Investor Services Proprietary Limited
70 Marshall Street
Johannesburg, 2001
P O Box 61051
Marshalltown, 2107
WEBSITE
www.emediaholdings.co.za
Date: 23/11/2016 07:30:00 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.
Sharenet Sites 
