Wrap Text
Unaudited Consolidated Condensed Interim Results
for the six months ended 30 September 2018
eMedia Holdings Limited
The company's shares are listed under the Media sector of the JSE Limited.
Registration number: 1968/011249/06
(Incorporated in the Republic of South Africa)
JSE Share Codes
Ordinary Shares: EMH IZIN: ZAE000208898
N-Ordinary Shares: EMN IZIN: ZAE000209524
Unaudited Consolidated Condensed Interim Results
for the six months ended 30 September 2018
COMMENTARY
The period under review resulted in the Group ending the period showing a profit from
continuing operations of R48.4 million compared to a profit of R18.8 million in the
prior period, an increase of 158,3%. The loss from discontinued operations amounted
to R29.5 million resulting in the profit for the period ending on R18.9 million
compared to a loss of R0.7 million in the prior period. Revenue reflected an increase
of 5.3% ending the period on R1.2 billion despite the tough economic conditions.
Included in the profit are the losses attributable to the continued investment into
the multi-channel business (OpenView and e.tv multichannel) of R84.3 million compared
to R117.3 million in the prior year. Box activations have continued steady growth and
at 30 September 2018, 1 432 521 boxes were activated, compared to 1 008 114 boxes for
the prior period. EBITDA for the Group ended the period on R164.2 million compared
to R128.6 million for the prior period, an increase of 27.7% year-on-year. Included
in the profit from continuing operations is the profit on the sale of Da Vinci Media
of R11.4 million. The Group's only asset is a 67.7% stake in eMedia Investments
Proprietary Limited ("eMedia Investments").
EMEDIA INVESTMENTS
e.tv terrestrial
The six-month period ended 30 September 2018 has seen the market share of e.tv
remain fairly constant but has seen an increase in a key revenue driver, LSM 8 to
9, from 11.80% market share to 13.90% market share. e.tv's advertising revenue has
seen a slight decrease year on year in a very challenging economic environment.
Programming and other cost of sales decreased by 12% from R326 million to R285.6
million. Management is re-looking at the schedule in order to maximize slots that
are currently unprofitable. A new local drama, 'Imbewu: The Seed', was introduced in
April 2018 and is performing well. This should help improve the revenue in e.tv, as
well-performing local dramas are the biggest revenue drivers. Costs are being well
maintained in the business with operating expenses increasing from R250.9 million to
R269.9 million, a movement of 8% year-on-year and e.tv is showing signs of improved
performance and recovery.
e.tv Multichannel and Platco
As mentioned, included in the results are losses of R84.3 million from the continued
investment into the multi-channel businesses from which significant revenue is not
yet being derived. Advertising revenue has however shown significant improvement,
increasing by 161% from R22.2 million in the previous year to R57.9 million. The
OpenView platform has increased its viewership capacity to 1 432 521 boxes activated
at the end of the period. With this ever-improving rollout, and when digital
terrestrial television starts, the Group will be in a good position to increase its
revenue base.
eSat.tv (eNCA)
eNCA continues to perform well and continues to be the most watched 24-hour news
station on DStv with over 50% market share. Advertising revenue in eNCA still shows
good growth ending the period on R57.0 million, up 10% from R52.0 million in the
previous year. Costs continue to be well maintained with cost of sales showing no
increase and amounting to R133.6 million compared to R133.5 million in the prior
period. eNCA had a relaunch and rebranding in July 2018, and initial feedback is
generally positive.
Certain of the Group's other subsidiaries have performed satisfactorily for the six
month period. These include Sasani Africa and Strika Entertainment. YFM has also
shown a turnaround from the previous period.
Management continues to review the non-core and peripheral businesses and will exit
these businesses when opportunities arise. During the current period, the sale of
Da Vinci Media was concluded, as well as the beginning of the process to close
certain of the Silverline 360 operations. The operations of Refinery JHB, Moviemart
and the Head Office functions will cease on 31 October 2018 and have been reflected as
discontinued operations.
STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
30 September 30 September 31 March
2018 2017 2018
R000's R000's R000's
ASSETS
Non-current assets 5 870 422 7 589 977 5 726 730
Property, plant and equipment 869 542 903 699 784 492
Plant and equipment 268 833 294 839 183 785
Owner occupied property 600 709 608 860 600 707
Intangible assets 2 524 114 2 590 434 2 537 697
Goodwill 2 228 978 3 778 264 2 153 800
Equity-accounted investees 147 642 209 498 143 495
Long-term receivables 16 110 17 108 14 398
Deferred tax assets 84 036 90 974 92 848
Current assets 1 428 354 1 605 602 1 368 035
Inventories 15 039 18 119 9 714
Programming rights 809 605 929 956 870 674
Trade and other receivables 422 842 462 421 384 408
Current tax assets 49 926 15 154 16 950
Cash and cash equivalents 130 942 179 952 86 289
Assets of disposal groups 19 672 22 985 262 792
Total assets 7 318 448 9 218 564 7 357 557
EQUITY AND LIABILITIES
Total equity 5 583 597 7 186 738 5 558 961
Stated capital 6 762 797 6 762 797 6 762 797
Treasury shares (10 870) (7 913) (10 870)
Reserves (2 176 038) (605 365) (2 189 959)
Equity attributable to owners of the Company 4 575 889 6 149 519 4 561 968
Non-controlling interest 1 007 708 1 037 219 996 993
Non-current liabilities 665 059 782 917 684 252
Deferred tax liabilities 526 502 537 075 533 342
Borrowings 135 390 241 338 150 910
Operating lease accruals 3 167 4 504 -
Current liabilities 1 064 810 1 248 909 1 009 169
Current tax liabilities 5 646 7 752 11 512
Current portion of operating lease accruals 208 - -
Current portion of borrowings 397 556 434 533 409 452
Trade and other payables 610 309 805 235 587 176
Bank overdraft 51 091 1 389 1 029
Liabilities of disposal groups 4 982 - 105 175
Total liabilities 1 734 851 2 031 826 1 798 596
Total equity and liabilities 7 318 448 9 218 564 7 357 557
Net asset value 4 575 889 6 149 518 4 561 968
Net asset value per share
after treasury shares (cents) 1 030 1 383 1 027
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
6 Months 6 Months* Restated
30 September 30 September 31 March
2018 2017 2018
R000's R000's R000's
Continuing operations
Revenue 1 247 598 1 184 936 2 401 858
Cost of sales (605 211) (595 255) (1 221 226)
Gross profit 642 387 589 681 1 180 632
Other income 4 665 4 416 16 409
Administrative and other expenses (482 820) (465 516) (961 964)
Earnings before interest, taxation,
depreciation and amortisation 164 232 128 581 235 077
Depreciation and amortisation (78 857) (76 520) (153 576)
Impairments - - (1 597 211)
Operating profit/(loss) 85 375 52 061 (1 515 710)
Finance income 3 217 4 454 8 547
Finance expenses (18 390) (21 288) (43 046)
Share of (loss)/profit of
equity-accounted investees,
net of taxation (375) (279) 1 289
Investment surplus on disposal
of associate 11 232 - -
Profit/(loss) before taxation 81 059 34 948 (1 548 920)
Taxation (32 623) (16 193) (32 155)
Profit/(loss) for the year
from continuing operations 48 436 18 755 (1 581 075)
Discontinued operations
Loss for the period from
discontinued operations, net of taxation (29 456) (19 485) (31 845)
Profit/(loss) for the period 18 980 (730) (1 612 920)
Other comprehensive profit/(loss),
net of related taxation
Items that are or may be reclassified
to profit or loss
Foreign operations - foreign
currency translation differences 9 907 4 103 (6 735)
Reclassification of foreign
currency differences on disposal - 722 (723)
Other comprehensive profit/(loss),
net of taxation 9 907 4 825 (7 458)
Total comprehensive profit/(loss)
/income for the period 28 887 4 095 (1 620 378)
Profit/(loss) attributable to:
Owners of the Company 11 317 (2 494) (1 579 005)
Non-controlling interest 7 663 1 764 (33 916)
18 980 (730) (1 612 920)
Total comprehensive income/(loss)
attributable to:
Owners of the Company 18 023 772 (1 584 053)
Non-controlling interest 10 864 3 323 (36 325)
28 887 4 095 (1 620 378)
*6 Months ended 30 September 2017 restated for discontinued operations
STATEMENT OF CHANGES IN EQUITY
Stated Treasury Other Retained
Capital Shares Reserves Income
R000's R000's R000's R000's
Balance 31 March 2017 6 762 797 (7 221) (7 488) (592 944)
Loss - - - (1 578 773)
Foreign currency
translation reserve - - (5 049) -
Share buy-back - (3 649) - -
Change in ownership - - - (5 705)
Disposal of share interest - - - -
Dividends paid - - - -
Balance 31 March 2018 6 762 797 (10 870) (12 537) (2 177 422)
Profit - - - 11 317
Foreign currency translation reserve - - 6 706 -
Common control reserve arising
on the acquisition of Niveus 13 - - (4 102) -
Dividends paid - - - -
Balance 30 September 2018 6 762 797 (10 870) (9 933) (2 166 105)
Equity Non-controlling Total
Owners Interest Reserves
R000's R000's R000's
Balance 31 March 2017 6 155 144 1 026 541 7 181 685
Loss (1 578 773) (34 147) (1 612 920)
Foreign currency translation reserve (5 049) (2 409) (7 458)
Share buy-back (3 649) - (3 649)
Change in ownership (5 705) 5 705 -
Disposal of share interest - 1 648 1 648
Dividends paid - (345) (345)
Balance 31 March 2018 4 561 968 996 993 5 558 961
Profit 11 317 7 663 18 980
Foreign currency translation reserve 6 706 3 201 9 907
Common control reserve arising on
the acquisition of Niveus 13 (4 102) - (4 102)
Dividends paid - (149) (149)
Balance 30 September 2018 4 575 889 1 007 708 5 583 597
STATEMENT OF CASH FLOWS
Unaudited Unaudited* Restated
30 September 30 September 31 March
2018 2017 2018
R000's R000's R000's
Cash from operating activities
Cash flows from operating activities 173 618 56 393 109 286
Net finance costs (16 068) (18 815) (38 777)
Taxes paid (32 125) (27 344) (49 543)
Net cash inflow from operating activities 125 425 10 234 20 966
Cash used in investing activities
Acquisition of property,
plant and equipment (66 713) (26 650) (56 962)
Acquisition of plant and equipment (62 168) (26 650) (54 449)
Acquisition of owner-occupied properties (4 545) - (2 513)
Proceeds from sale of
property, plant and equipment 637 3 323 27 670
Book value of assets disposed 172 1 864 2 298
Surplus on disposal 465 1 459 25 372
(Repayment)/advances of financial assets (426) 2 584 2 153
Acquisition of subsidiary,
net of cash acquired (4 996) - -
Net cash flows of discontinued operations - 13 900 16 928
Additions to intangible assets (6 587) (18 503) (22 376)
Loans advanced to equity accounting investees (4 943) (5 055) (9 964)
Net proceeds from disposal of associates 8 223 - -
Net cash used in investing activities (74 805) (30 401) (42 551)
Cash (used in) from financing activities
Repayment of borrowings (87 138) (82 264) (188 424)
Settlement of forward exchange contracts - - (11 743)
Borrowings raised 1 419 85 726 150 188
Share buy back - (692) (3 649)
Proceeds from disposal of shares
to non-controlling interest - 2 570 2 570
Dividends paid to non controlling interest (149) - (345)
Net cash (used in) from financing activities (85 868) 5 340 (51 403)
Net change in cash and cash equivalents (35 248) (14 827) (72 988)
Cash and cash equivalents at beginning
of the year 116 656 192 510 192 510
Effect of movements in exchange rates
on cash held 3 490 880 (2 866)
Cash and cash equivalents at end
of the year 84 898 178 563 116 656
Cash and cash equivalents comprise the
following
Cash and cash equivalents 135 989 179 952 117 685
Bank balances 130 942 179 952 86 289
Cash in disposal group assets held for sale 5 047 - 31 396
Bank overdrafts (51 091) (1 389) (1 029)
84 898 178 563 116 656
*6 Months ended 30 September 2017 restated for discontinued operations
EARNINGS, DILUTED AND HEADLINE EARNINGS PER SHARE
Unaudited Unaudited
Gross Net
R000's R000's
For the year ended 30 September 2018
Profit attributable to equity owners of the parent 11 317
IAS 16 gains on disposal of plant and equipment (105) (76)
Profit from of disposal of associate (7 603) (7 603)
IFRS 3 impairment of goodwill 11 239 11 239
Headline earnings 14 877
For the year ended 30 September 2017*
Loss attributable to equity owners of the parent (2 494)
IAS 16 gains on disposal of plant and equipment (988) (711)
IAS 16 impairment of plant and equipment 7 5
IAS 21 foreign currency translation reserve
reclassified to profit or loss 489 489
IFRS 10 loss on the loss of control of a subsidiary (634) 271
Headline earnings (2 440)
*6 Months ended 30 September 2017 restated for discontinued operations
Unaudited Unaudited*
30 September 30 September
2018 2017
R'000 R'000
Basic earnings (R'000)
Earnings/(loss) 11 317 (2 494)
Continuing operations 31 254 10 697
Discontinued operations (19 937) (13 191)
Headline earnings/(loss) 14 877 (2 440)
Continuing operations 23 576 10 457
Discontinued operations (8 699) (12 897)
Basic earnings per share (cents)
Earnings/(loss) 2,55 (0,56)
Continuing operations 7,03 2,41
Discontinued operations (4,48) (2,97)
Headline earnings/(loss) 3,34 (0,55)
Continuing operations 5,30 2,35
Discontinued operations (1,96) (2,90)
Weighted average number of
shares in issue - 30 September ('000) 444 481 444 597
Issued shares as at 1 April ('000) 444 597 445 737
Effect of own shares held ('000) (116) (1 140)
Net number of shares in issue - 30 September ('000) 444 152 444 489
Number of shares in issue - 30 September ('000) 445 737 445 737
Number of treasury shares in issue - 30 September ('000) (1 585) (1 248)
*6 Months ended 30 September 2017 restated for discontinued operations
BASIS OF PREPERATION
The unaudited consolidated condensed results for the six months to September 2018
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 2018.
These results have been prepared under the supervision of the Financial Director,
A S Lee (CA) SA, and have not been audited or reviewed by the Group's auditors, Grant
Thornton Johannesburg Partnership.
SIGNIFICANT ACCOUNTING POLICIES
Except as described below, the accounting policies applied in these interim financial
statements are the same as those applied in the Group's consolidated financial
statements as at and for the year ended 31 March 2018.
The changes in accounting policies are also expected to be reflected in the Group's
consolidated financial statements as at and for the year ending 31 March 2019.
The Group has adopted IFRS 15 Revenue from Contracts with Customers and IFRS 9
Financial Instruments from 1 January 2018 but they do not have a material effect on
the Group's financial statements therefore no restatement of prior year numbers are
required.
STATED CAPITAL
As at 30 September 2018, no changes to Stated Capital occurred.
DISPOSAL GROUP ASSETS/LIABILITIES HELD FOR SALE
Operations reported as disposal group assets/liabilities held for sale at
30 September 2018 relate to the operations of Refinery Johannesburg Proprietary
Limited, Moviemart Proprietary Limited and the head office operations of Silverline
Three Sixty Proprietary Limited. These entities will cease operations from
31 October 2018.
Discontinued operations as disclosed in the statement of comprehensive income
consist of the following:
Unaudited Unaudited*
30 September 30 September
2018 2017
R000's R000's
Revenue
Longkloof Limited Group - -
e.Botswana Proprietary Limited
and e.tv Botswana Proprietary Limited - 1 537
Lalela Music Proprietary Limited and Lalela Music LLC Z - -
Silverline Three Sixty Proprietary Limited 20 818 16 123
Total revenue 20 818 17 660
Loss from discontinued operations
Longkloof Limited Group 52 2 160
e.Botswana Proprietary Limited and
e.tv Botswana Proprietary Limited - (8 061)
Lalela Music Proprietary Limited and Lalela Music LLC - 3 186
Silverline Three Sixty Proprietary Limited (29 508) (16 770)
Total loss (29 456) (19 485)
*6 Months ended 30 September 2017 restated for discontinued operations
Disposal groups held for sale as disclosed in the statement of financial position
comprise the following:
Property,
plant Trade and other Cash and cash Total
equipment Inventories receivables equivalents assets
R'000 R'000 R'000 R'000 R'000
Assets
30 September 2018
Longkloof
Limited Group 283 - - 4 082 4 365
Silverline Three
Sixty Proprietary
Limited 2 034 3 918 8 390 965 15 307
Total assets 2 317 3 918 8 390 5 047 19 672
30 September 2017
Sabido Properties
Proprietary Limited 22 985 - - - 22 985
Unaudited Unaudited
30 September 30 September
2018 2017
R000's R000's
Liabilities
Silverline Three Sixty Proprietary Limited 4 982 -
Total liabilities 4 982 -
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 2018.
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
Chief executive officer, A van der Veen, resigned from the board effective
30 November 2018.
K Sherrif has been appointed as an executive director of eMedia Holdings as of
13 November 2018.
DIVIDEND TO SHAREHOLDERS
The directors have resolved not to declare an interim dividend for the period ended
30 September 2018.
On behalf of the board
JA Copelyn A S Lee
Chairperson Financial Director
Cape Town
21 November 2018
CORPORATE INFORMATION
eMedia Holdings Limited
The company's shares are listed under the Media sector of the JSE Limited
COMPANY REGISTRATION NUMBER:
1968/011249/06 (Incorporated in the Republic of South Africa)
JSE SHARE CODES:
Ordinary Shares: EMH IZIN: ZAE000208898
N-Ordinary Shares: EMN IZIN: ZAE000209524
REGISTERED OFFICE
5 Summit Road
Dunkeld West
Hyde Park
Johannesburg
2196
Private Bag X9944
Sandton 2146
DIRECTORS
JA Copelyn* (Chairman)
A van der Veen (Chief executive officer)
K Sherrif
AS Lee (Financial director)
TG Govender*
Y Shaik*
VE Mphande*^
L Govender*^
RD Watson*^
(*Non-executive ^Independent)
COMPANY SECRETARY
HCI Managerial Services Proprietary Limited
TRANSFER SECRETARIES
Computershare Investor Services Proprietary Limited
Rosebank Towers, 15 Biermann Avenue,
Rosebank, 2196
PO Box 61051 Marshalltown, 2107
AUDITORS
Grant Thornton Johannesburg Partnership
Practice Number: 903485
@Grant Thornton
Wanderers Office Park
52 Corlett Drive
Illovo, 2196
Private Bag X10046
Sandton, 2146
BANKERS:
Standard Bank of South Africa
SPONSOR:
Investec Bank Limited
100 Grayston Drive
Sandton, Sandown, 2196
WEBSITE:
http://www.emediaholdings.co.za
Date: 21/11/2018 02:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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