Unaudited Condensed Financial Results for the Six Months ended 31 December 2016 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 2016 Condensed Group Statement of Comprehensive Income Unaudited Unaudited Audited 6 months 6 months 12 months 31-Dec-16 31-Dec-15 30-Jun-16 R'000 R'000 R'000 Revenue 17 043 14 533 28 304 Loss before investment income, fair value adjustments, depreciation, amortisation, impairments and exchange gains (186) (3 541) (6 175) Depreciation and amortisation (144) (144) (287) Stanlib income fund 606 585 1 322 Bank interest 35 52 103 Fair value adjustment of investment and Stanlib income fund - - 11 Foreign exchange gains 3 33 78 Impairment of joint venture investment - - (13) Net profit/(loss) before taxation 314 (3 015) (4 961) Taxation 28 14 38 Net profit/(loss) for the period 342 (3 001) (4 923) Other comprehensive income - - - Total comprehensive profit/(loss) for the period 342 (3 001) (4 923) Basic and diluted earnings/(loss) per share (cents) 0.32 (2.81) (4.62) Weighted average number of shares in issue (000’s) 106 575 106 575 106 575 Reconciliation of headline profit/(loss) Net profit/(loss) for the period 342 (3 001) (4 923) Impairment of joint venture investment - - 13 Headline earnings/(loss) 342 (3 001) (4 910) Basic and diluted headline earnings/(loss) per share (cents) 0.32 (2.81) (4.61) 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-16 31-Dec-15 30-Jun-16 Assets R'000 R'000 R'000 Non-current assets Tangible fixed assets 417 536 513 Investment in joint venture - 13 - Other investment 34 34 34 Deferred taxation 303 252 275 Stanlib income fund 943 1 082 927 1 697 1 917 1 749 Current assets Trade and other receivables 6 078 3 353 4 166 Stanlib income fund 11 664 14 171 13 075 Cash and cash equivalents 1 919 3 409 3 094 19 661 20 933 20 335 Total assets 21 358 22 850 22 084 Equity and liabilities Capital and reserves Share capital and premium 32 732 32 732 32 732 Accumulated loss (14 843) (13 263) (15 185) Ordinary shareholders’ interest 17 889 19 469 17 547 Current liabilities Trade and other payables 3 191 2 930 3 754 Taxation 10 10 10 Deferred revenue 268 441 773 3 469 3 381 4 537 Total equity and liabilities 21 358 22 850 22 084 Net asset value per share (cents) 16.8 18.3 16.46 Net tangible asset value per share (cents) 16.8 18.3 16.46 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 2015 107 32 625 (10 262) 22 470 Total comprehensive loss for the year ended 30 June 2016 - - (4 923) (4 923) Balance at 30 June 2016 107 32 625 (15 185) 17 547 Total comprehensive profit for the period ended 31 December 2016 - - 342 342 Balance at 31 December 2016 107 32 625 (14 843) 17 889 Condensed Group Statement of Cash Flow Unaudited Unaudited Audited 6 months 6 months 12 months 31-Dec-16 31-Dec-15 30-Jun-16 R'000 R'000 R'000 Net cash outflows from operating activities (1 161) (227) (7 458) Net cash (outflows)/inflows from investing activities (48) (60) 6 820 Cash and cash equivalents at end of period 1 919 3 409 3 094 Financial results Moneyweb is pleased to announce a return to profitability. This has mainly been achieved by a 17.15% (R2.510m) increase in revenue from the previous 6-month period. As mentioned in previous SENS commentary Moneyweb invested in diversifying its revenue streams and this has now started to pay dividend. Moneyweb invested in growing its radio properties by taking on additional airtime on RSG and Radio 2000. A headline sponsor for the RSG Geldsake programme was obtained which assisted in tremendous growth in radio revenue. There has been an 86.16% increase in radio revenue from the previous 6-month period. There has also been growth in Moneyweb’s revenue from events held and from the video production division during this reporting period. Digital revenues have however declined on the Mineweb website due to the global mining recession. There have also been declines in revenue from The Citizen for content production and in our digital newspaper Moneyweb Today. Overall Moneyweb has started to see increased revenue in its areas of focus. We have managed to cut overall business expenses by just over 6% (nearly R1m) when compared to the previous 6-month period. This was done by making use of less professional services for projects that were not providing the required returns. There was also less spent on freelance journalism. With the increased revenue and decreased costs Moneyweb has made a 6 month profit before tax of R314k. Cash flows have started to steady as revenue has increased. Moneyweb remains debt free and has liquid cash reserves of R13.583m. There has been an increase in the debtor’s balance arising from the increase in revenue. Operating results The company generated revenue of R17.043m and a net profit of R342k over the 6-month period. Moneyweb has started to reap the benefits from investments made in various areas of its business. The significant changes were brought about by increased revenue in video production, events and increased air-time on the SABC radio stations. Digital revenue declined slightly due to less advertising in the mining sector and in the investor relations sector. Overall we have increased revenue and this bodes well for the next 6 months. With the increased pressures on digital advertising prices it is pleasing to note that clients are very satisfied with Moneyweb’s cross-media solutions. Moneyweb is able to offer clients a wide array of choices to market themselves which include, radio, video, print, events, digital and social media. Moneyweb has decreased its business costs by applying strict reviews to various products which were not profitable. This will continue going forward and where divisions or business products are not successful they will be stopped. The media landscape continues to change on a daily basis and competition is rife in this industry. Moneyweb is a niche business and investment content provider which is able to offer clients top-end audiences within South Africa. This will continue and Moneyweb will grow its areas of business within the media industry. Prospects Moneyweb is focussed on continuing to grow its revenues across all platforms. There will be further investment in our video production unit from a capital expenditure perspective. This will be to produce top quality video productions to be broadcast on television. The aim is to not only obtain traditional advertising spend but also to obtain production budgets used for television. Moneyweb has renewed its SABC contract for another 3 years. There will thus be further opportunities to extend Moneyweb’s airtime on commercial and public SABC stations. Moneyweb will continue to put high-end events together for opinion leaders to network. This is a great way for brands to distinguish themselves from the competition. There will be a focus on obtaining advertising spend for Moneyweb’s and South Africa’s flagship investment magazine known as The Moneyweb Investor. Moneyweb’s online shop at www.moneyweb.co.za with its premium subscription product known as Moneyweb Insider will continue to be marketed aggressively to increase annuity based revenue. Cautionary Shareholders are advised that the discussions referred to in the joint cautionary announcement dated 2 December 2016 are still continuing. Shareholders are accordingly urged to continue to exercise caution in dealing in their shares until such time as further announcements in this regard are made. 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 2016 and are in terms of IFRS. 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 10 February 2017 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: 10/02/2017 11:11:00 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. 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