Kagiso Media tops a billion rand in revenue, posts 30.8 per cent increase in core headline earnings - CNBC Africa

Kagiso Media tops a billion rand in revenue, posts 30.8 per cent increase in core headline earnings

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Core headline earnings were 30 per cent higher at 252.9 million rand for the year ended 30 June 2013 from the previous year’s 193.4 million rand.

“Concerns over a consumer spending downturn in the fiscal year did not materialise as trading conditions in South Africa, and in our categories, generally improved,” the group said in a statement.

“In particular, the radio assets have outperformed the market median in advertising spend. The introduction of Juta into the portfolio has assisted significantly in driving both top line and bottom line growth.”

[DATA KGM:Kagiso Media] is a black-owned and managed investment holding company that radio assets such as East Coast Radio in KwaZulu-Natal, Jacaranda FM, New Media company Acceleration Media and the Kagiso MSN division, in a partnership with Microsoft.

Operating profit increased from 259.6 million rand in 2012 to 283 million rand, and headline earnings were up 24.6 per cent to 225.8 million rand from 181.3 million rand.

A final dividend of 40 cents per share was declared, and is up 33 per cent from the previous year.

Its content division, which includes Urban Brew Studios, had a difficult year as margins were placed under significant pressure, but revenue increased from 211.7 million rand to 244.7 million rand.

Corporate revenue however decreased from 3 million rand to a million rand.

Revenue for the group’s broadcasting segment was up 14.2 per cent from 586.4 million rand in the previous year to 669.8 million rand. The 14 per cent improved performance was better than the industry average of 12 per cent, the group said.

“The inclusion of Juta in the 2013 results provided significant impetus to revenue and profit growth, for the Information and Other segment. The law business remains the market leader in South Africa while the academic division has reflected good growth in a category only growing at 2% in the year under review,” the group said.

Its information segment revenue grew significantly from 74.8 million rand to 310.7 million rand.

The group’s new media segment’s revenue also showed significant growth, from 79.7 million rand to 108.5 million rand.  

In September 2012, the group acquired Kaufman Levin Associates Proprietary Limited (KLA) for the total purchase price of 27 million rand.  

 “The Kagiso Media group, having just delivered a solid set of results will not sit back, as always there is serious focus to deliver growth in the coming year,” the group added.

“The maturity throughout the organisation enables the group to face prevailing market conditions with confidence.”