Wrap Text
Reviewed Results for the year ended 31 March 2017
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")
REVIEWED RESULTS
for the year ended 31 March 2017
CONSOLIDATED PROVISIONAL STATEMENTS OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
Reviewed Audited
year ended year ended
31 March 31 March
% 2017 2016
change R'000 R'000
Revenue 0 238 593 238 303
Cost of sales 5 (59 680) (57 104)
Gross profit 178 913 181 199
Operating expenses (114 796) (116 766)
Operating profit 0 64 117 64 433
Investment income 4 250 3 000
Finance income 7 856 6 342
Finance cost (6) (4)
Profits attributable to associates 631 627
Net profit before taxation 3 76 848 74 398
Taxation (20 791) (20 775)
SA normal taxation (19 606) (20 206)
Deferred taxation (1 185) (569)
Total comprehensive income for the year 5 56 057 53 623
Total comprehensive income attributable to:
Non-controlling interest holders 33 7 413 5 573
Equity holders of the parent 1 48 644 48 050
Earnings per share (cents) 3.0 609,2 591,2
Headline earnings per share (cents) 3.3 606,9 587,6
Dividends per share (cents) 350 350
Weighted average number of shares in issue ('000) 7 985 8 127
Headline earnings reconciliation
Profit attributable to equity holders 48 644 48 050
Profit on disposal of fixed assets (257) (408)
Tax on disposal of assets 72 114
Headline earnings 48 459 47 756
CONSOLIDATED PROVISIONAL STATEMENTS OF FINANCIAL POSITION
Reviewed Audited
31 March 31 March
2017 2016
R'000 R'000
ASSETS
Non-current assets 138 630 139 043
Property, plant and equipment 73 822 73 996
Goodwill 39 426 39 426
Investments 14 749 13 803
Deferred taxation 10 633 11 818
Current assets 167 648 160 747
Trade receivables 44 841 41 303
Other receivables 3 532 4 654
Tax paid in advance 108 738
Cash and cash equivalents 119 167 114 052
Total assets 306 278 299 790
EQUITY AND LIABILITIES
Total equity 230 865 218 615
Current liabilities 75 413 81 175
Trade payables 14 361 13 681
Other payables 57 215 65 037
Dividend payable 1 642 1 472
Taxation 2 195 985
Total equity and liabilities 306 278 299 790
CONSOLIDATED PROVISIONAL STATEMENTS OF CHANGES IN EQUITY
Reviewed Audited
year ended year ended
31 March 31 March
2017 2016
R'000 R'000
Issued capital
Balance at beginning of year 8 120 8 159
Shares repurchased and cancelled (155) (39)
Balance at end of year 7 965 8 120
Share premium
Balance at beginning of year 9 097 12 839
Shares repurchased and cancelled (9 097) (3 742)
Balance at end of year – 9 097
Retained profit
Balance at beginning of year 199 342 179 760
Total comprehensive income for the year 48 644 48 050
Shares repurchased and cancelled (1 919) –
Dividend (27 389) (28 468)
Balance at end of year 218 678 199 342
Non-controlling interests
Balance at beginning of year 2 056 746
Comprehensive income for the year 7 413 5 573
Share of dividend (5 247) (4 263)
Balance at end of year 4 222 2 056
Total capital and reserves 230 865 218 615
CONSOLIDATED PROVISIONAL STATEMENTS OF CASH FLOWS
Reviewed Audited
year ended year ended
31 March 31 March
2017 2016
R'000 R'000
Cash generated by operating activities 70 534 72 533
Net interest received 7 850 6 338
Taxation paid (17 766) (21 508)
(Increase)/decrease in working capital (9 563) 3 098
Cash flows from operating activities 51 055 60 461
Cash flows from investing activities (2 303) (15 637)
Cash flows from financing activities* (43 637) (36 285)
Net increase in cash and cash equivalents 5 115 8 539
Cash and cash equivalents at beginning of year 114 052 105 513
Cash and cash equivalents at end of year 119 167 114 052
*Dividends paid and shares repurchased.
SEGMENT REPORTING
Reviewed Audited
year ended year ended
31 March 31 March
2017 2016
R'000 R'000
Revenue
Radio broadcasting 198 802 194 171
Radio services 39 283 43 766
Corporate 508 366
Total 238 593 238 303
Profitability
Radio broadcasting 60 333 58 915
Radio services 2 184 8 237
Corporate 1 600 (2 719)
Total operating profit 64 117 64 433
Unallocated/eliminated corporate net
expense and intercompany consolidation 631 627
Investment income 4 250 3 000
Interest received 7 856 6 342
Interest paid (6) (4)
Taxation (20 791) (20 775)
Total comprehensive income for the year 56 057 53 623
Assets
Radio broadcasting 64 714 65 938
Radio services 31 640 37 303
Corporate 90 757 82 497
Total 187 111 185 738
Liabilities
Radio broadcasting 49 863 53 109
Radio services 19 535 21 955
Corporate 6 015 6 111
Total 75 413 81 175
Capital expenditure
Radio broadcasting 4 632 13 640
Radio services 250 277
Corporate 1 546 5 701
Total 6 428 19 618
Depreciation
Radio broadcasting 5 510 4 424
Radio services 615 765
Corporate 313 312
Total 6 438 5 501
CHAIRMAN'S REVIEW
REVIEW OF THE YEAR
Trading conditions for the period under review remained tough. Revenue of R238,6 million
(2016: R238,3 million) was virtually the same as the previous year and comprehensive income
increased by 5% to R56,1 million (2016: R53,6 million).
The comprehensive income attributable to equity holders of the parent amounted to R48,6 million
(2016: R48 million) with earnings per share of 609,2 cents (2016: 591,2 cents). Headline earnings
per share were 606,9 cents (2016: 587,6 cents).
After paying tax of R17,8 million (2016: R21,5 million), the group generated R51,1 million
(2016: R60,5 million) in cash from its operating activities during the year. The group invested an
additional R1,4 million (2016: R5,5 million) on the development of the new home of Central Media
Group in Bloemfontein and spent R5 million (2016: R14,1 million) on capital expenditure. We paid
R11,2 million (2016: R3,8 million) to repurchase 155 144 (2016: 39 200) of our own shares. During
the year the group paid out dividends to the value of R27,2 million (2016: 28,2 million) to the
equity holders of the company and ended the year with cash resources of R119,2 million
(2016: R114,1 million).
OPERATIONS
Low business confidence resulted in demanding trading conditions. Innovation and tight cost control
remain an imperative.
Algoa FM delivered a good performance with revenue up by 5% resulting in an increase in
profitability. The station delivered improved revenues with both national and direct activations
exceeding the previous year. Algoa FM's current audience figures are marginally up year on year.
A new Greenfields licence, Rhythm FM, plans to go to air by the end of June 2017. This new
commercial stations broadcast footprint will cover both Mthatha and Butterworth in the Eastern
Cape which falls outside the footprint of Algoa FM. Algoa FM was nominated in 10 categories
for the Liberty Radio Awards 2017 and won the best Multi-Media Campaign as well as the Best
Promotion, Stunt or Event awards.
Despite difficult trading conditions, Central Media Group managed to grow revenue by 4,5%,
resulting in an increase in profitability. OFM felt the effects of the national slow-down in advertising
expenditure. A new audience measurement platform (BRC-RAM) was released in this year and this new research
has produced a significantly different radio listening landscape. Despite a lower cumulative audience, OFM has
the highest Time Spent Listening (TSL) in South Africa's commercial radio sector. Digital Platforms
increased profitability on the back of a greater focus on service revenues. Redstar Agency also
increased profitability, albeit off a low base. Mahareng Publishing continued to grow by launching
a new local newspaper called Bloemfontein Courant Voice, resulting in revenues increasing as
the title gained momentum. The late break in the drought has given many businesses hope for
the winter season. Central Media has a number of lucrative prospects in the project pipeline as
a potential offset of the continued advertising recession. While trading conditions remain tough,
Central Media is still ideally positioned as the premier media company in its broadcasting footprint.
RadioHeads has established itself as a leading player in the Content Marketing space for South
African Radio with increased revenue and a profitable bottom line. Radio Heads, with its leveraging of content
across multiple platforms, is now a preferred supplier for some of the major Agencies
in the country. Its maiden sojourn into the space of TV Production over the past year, together with
the effective use of "first in the country" mobile broadcast technology, positions RadioHeads as
innovative and ahead of the curve. In the year ahead RadioHeads will continue to create and own
new Radio properties to ensure its future sustainability.
United Stations is a specialist media sales company, representing the on-air and digital assets
of a network of radio stations. It is equipped to maximise the revenue of its various platforms by
providing marketing solutions to advertisers and agencies. Revenue and profitability was down year
on year as the company focused on the execution of fundamental steps to restructure its fixed costs
and diversify its mix of media platforms. This process is now complete and the consequent platform
mix offers good potential for growth.
DIVIDENDS
An interim dividend (dividend number 10) of 100 cents per ordinary share (gross) was declared for
the period ended 30 September 2016. (2015: 100 cents gross) and paid on 16 January 2017. The
final dividend (dividend number 11) for the year ended 31 March 2017 is 250 cents per ordinary
share (gross) (2016: 250 cents per share).
DECLARATION OF FINAL DIVIDEND NUMBER 11
The board has declared a final dividend (dividend number 11) of 250,00 cents per ordinary share
(gross) for the year ended 31 March 2017. 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 20%
- the gross dividend amount is 250,00 cents per ordinary share for shareholders exempt from
DWT
- the net dividend amount is 200,00 cents per ordinary share for shareholders liable for DWT
- the company has 8 054 424 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 Tuesday, 4 July 2017
Shares will trade ex-dividend from Wednesday, 5 July 2017
The record date will be Friday, 7 July 2017 and payment will be made on Monday, 10 July 2017
Share certificates may not be dematerialised/rematerialised between Wednesday, 5 July 2017 and
Friday, 7 July 2017, both days inclusive.
EVENT SUBSEQUENT TO THE REPORTING PERIOD
On 5 May 2017 AME made an offer to the board of Moneyweb Holdings Limited ("Moneyweb") to
acquire all the issued share capital of the company, other than treasury shares and shares already held
by AME. The transaction will be implemented by way of a scheme of arrangement with a cash offer of
26 cents per Moneyweb share or a share offer of one AME share for every 250 Moneyweb shares
at a value of 28 cents per Moneyweb share. AME estimates that the transaction will be completed
by 31 August 2017.
Full details are available on the AME web site www.ame.co.za and on SENS.
PROSPECTS
The board expects the trading conditions for the 2018 year to remain challenging.
ACG Molusi
Independent Non-executive Chairman
25 May 2017
These provisional 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 2016.
These results have been reviewed by Grant Thornton and their unqualified review report is available
for inspection at the company's registered office.
Michelle Mynhardt CA(SA)
Financial Director
CORPORATE INFORMATION SPONSOR
AFRICAN MEDIA ENTERTAINMENT Arbor Capital Sponsors (Pty) Ltd
LIMITED Registration number 2006/033725/07
Incorporated in the Republic of South Africa Ground Floor, One Health Building
Registration number 1926/008797/06 Woodmead North Office Park
JSE code: AME ISIN: ZAE000055802 54 Maxwell Drive
("AME", "the company" or "the group") Woodmead, 2191
Suite #439, Private Bag X29
REGISTERED OFFICE Gallo Manor, 2052
Block A, Oxford Office Park
No 5, 8th Street, Houghton Estate, DIRECTORS
Johannesburg, 2198 ACG Molusi (Independent Non-executive
PO Box 3014, Houghton, 2041 Chairman)
TRANSFER SECRETARIES KL Tlhabane (Independent Non-executive)
Computershare Investor Services (Pty) Ltd MJ Prinsloo (Independent Non-executive)
Registration number 2004/003647/07 N Sooka (Independent Non-executive)
Rosebank Towers, 15 Bierman Avenue M Mynhardt (Executive Financial)
Rosebank AJ Isbister (Executive)
PO Box 61051, Marshalltown, 2107
Telephone: +27 11 370 5000 COMPANY SECRETARY
Telefax: +27 11 688 5238 C Roberts
www.ame.co.za
Date: 25/05/2017 05:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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