Openview and E-tv owner reports massive drop in profits

3 years ago 2

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E-tv owner eMedia has reported a half-year profit from continuing operations of R144.8 million, down from R180.2 million a year ago.

This represents a 19.7% decrease compared to April–September period a year ago.

It attributed the decrease to the contraction of South Africa’s TV advertising market and the negative impact of the rand-dollar exchange rate.

The total TV advertising spend was 8% less than the same period in the previous year, eMedia said.

eMedia’s revenue increased by 2.1% to R1.5 billion, while operating profit decreased 17.6% from R241.9 million to R199 million.

“A remarkable journey of success is unfolding as the eMedia Group releases positive and very satisfactory half-year results, despite the tough economic climate,” eMedia said in a press statement accompanying the results.

It said the first six months of the financial year saw an increase in the intensity of load-shedding across South Africa.

This directly impacted the “number of eyeballs” watching television, with the Average Minute Rating (AMR) decreasing by 16.5% compared to the same six-month period last year.

However, eMedia noted that the AMR for E-tv decreased by 5%, showing that its increased market share has helped the company.

“It shows that we are doing something right, and that our programming is in line with audience demand,” said eMedia CEO Khalik Sherrif.

Sherrif said they could not downplay the impact load-shedding has on the business and the rest of the industry.

E.tv is the main revenue generator for the company and improved its market share from 21.8% to 23.7%.

eMedia reported that Openview is in over 3 million households and recorded an increase in market share from 10% to 12.5%.

“The outstanding performance in the multi-channel business has come from eExtra, the two movie channels (eMovies and eMovies Extra), as well as eReality,” eMedia noted.

“These channels are continually in the Top 10 [direct-to-home] channels in the country and display the strength of content curation in the Group.”

eMedia said the Group had a combined market share of 36.2% in prime time on 30 September, up from 31.8% in the prior period, and 33.3% share for 06:00 to 24:00. This compares to the SABC at 27.3%, and DStv’s share at 30.5%.

“The eMedia Group continues to be the biggest broadcaster in South Africa, and this market share stands the group in good stead when the economy turns,” eMedia stated.