During the year under review, group revenue increased by 7% from R250.8 million in 2022 to R268.7 million. In line with the increase in revenue, profitability recovered satisfactorily resulting in an operating profit of R46.2 million compared to a prior year of R39.8 million. Various revenue initiatives implemented over the last year as well as increased market share have resulted in improved performance. During the year, 701 775 shares (2022: 79 174) were repurchased to the value of R22,6 million (2022: R2.5 million) and dividends of R23.3 million (2022: R14.3 million) were paid. This has resulted in a cash balance of R82 million (2022: R91.8 million) at the end of the year. The earnings per share for the year improved from 372.2 cents in 2022 to 485.5 cents.
The group generated cash from operating activities of R48.5 million (March 2022: R47.1 million), paid tax of R11.6 million (2022: R10 million), spent R6.3 million (2022: R3.6 million) on capital expenditure and paid dividends to its equity holders and non-controlling interest holders of R28.7 million (2022: R20 million).
Operations
Operations throughout the various business units performed well during the year, despite the demanding trading conditions and challenging economic circumstances. Innovation and tight cost control remain imperative focus points.
Algoa FM produced excellent results for the year ended 31 March 2023. Collectively, national and direct sales contributed to Net Radio Revenue ending 12% above budget, which together with tight financial controls, resulted in EBITDA last experienced pre-Covid. This performance was achieved despite a magnitude of conditions such as the severe water crisis, failing municipal infrastructure, disruptive power outages and rising inflation, which was further exacerbated by the State of Disaster, which was only lifted during April of 2022. During the period under review, audiences have grown, online engagement is on an upward trajectory, and cash flow remains positive.
Central Media Group (“CMG”) delivered a solid performance in 2023. OFM EBITDA improved despite continued unfavourable trading conditions. Mahareng Publishing and Digital Platforms both maintained their marketshare compared to the prior year through innovation and maintaining strong client relationships. Third party suppliers and input costs into each business remain a challenge and sustainability of the business units will continue to be a focus into the new financial year.
MediaHeads 360 has come out of a difficult year and though they ended the fiscal with a profit they fell short of achieving their 2023 target and ended with an EBITDA of 69% lower than the prior year. The current economic climate and load-shedding crisis have impacted on linear television’s performance, in turn hampering the company’s diversification strategy into the television realm. The focus for the upcoming financial year is to cement the business’s television strategy and long-term vision.
United Stations continued to grow its market share and increase advertiser demand across its full portfolio of media platforms, by aggressively leveraging the many marketing tools at its disposal, including events, streaming, activations, content and marketing services. The team worked hand in hand with its media clients to integrate their assets and as a result, has generated valuable advantages in a highly contested media marketplace. The overriding intention is to create a much broader and more lucrative business than just terrestrial radio.
Moneyweb Despite enormous effort on Moneyweb’s behalf, the performance for the year did not deliver as expected. Despite the shortfall, we are seeing marginal growth of 8% year-on-year. The challenge remains growing revenue to required levels to ensure Moneyweb returns to a healthier financial position. As a result, we are focusing on adding more alternative revenue models to complement the current advertising and subscription streams.
Dividends
An interim dividend for the period ended 30 September 2022 of 100 cents per ordinary share (gross) was declared (September 2021: 80 cents) and paid on 19 December 2022. Due to the cash reserves available, a final dividend (dividend no. 20) for the year ended 31 March 2023 of 250 cents per ordinary share (gross) (March 2022: 200 cents gross) was declared.
Prospects
The board expects the trading conditions for the 2024 financial year to remain challenging due to the unpredictable economy.