The eMedia Holdings group says a reduction in load-shedding and greater political stability helped boost its earnings for the half year to end-September.
Advertising, its largest source of revenue, ended the period at R1.222bn, a 7.1% increase. The biggest contributor to the rise was “the sustained prime-time market share as well as e.tv now holding the place as the top channel in the country”, it said.
Total revenue was up to R1.58bn from R1.51bn previously.
The e.tv owner said it “managed to remain the biggest broadcaster” in SA with an overall prime-time share of 35% compared with its competitors, one being at 30.7% and the other 27.6%.
“A sustained discontinuation of load-shedding as well as the hopeful sentiment around the establishment of the government of national unity has seen a positive impact on the rand and the economy as a whole,” the group said.
“The prolonged break from load-shedding has seen an increase in the number of eyeballs watching television which, in turn, has seen the television advertising cake end higher than the prior year for the first time in a long time, excluding the year after Covid-19.”
In 2022, advertising revenue across SA’s television sector dropped almost R500m as businesses and consumers tightened their belts in the economic slowdown.
“The only negative impact on the results was the higher-than-usual legal fees in relation to the fight with MultiChoice, which has now been settled, and the performance of Media Film Service, which has not yet recovered from the effect of the writers and actors’ strike in Hollywood.”
Profit for the period from continuing operations stood at R148.1m, up 14.8% compared with the prior comparable period, driven by the increased advertising revenue.
Earnings before interest, tax, depreciation and amortisation amounted to R282.8m for the period, an increase of 10.9%.
Headline earnings per share, which strip out the effect of one-off financial events, grew 14.9% to 22.42c.
Shares in eMedia, which are relatively illiquid, were unchanged on Monday at R3.11, giving the company a R1.41bn market value.
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