{"id":51928,"date":"2014-01-21T11:00:24","date_gmt":"2014-01-21T09:00:24","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=51928"},"modified":"2014-01-22T09:35:09","modified_gmt":"2014-01-22T07:35:09","slug":"ellies-interim-profit-slides","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/hardware\/51928\/ellies-interim-profit-slides\/","title":{"rendered":"Ellies interim profit slides"},"content":{"rendered":"

Ellies<\/a>, the JSE-listed\u00a0electronics distributor, has on Tuesday (21 January) reported a 3.8% decline in revenue for the six months ended October 2013, to\u00a0R1.08 billion.<\/p>\n

Headline earnings per share was considerably lower, off 40.9% at 25.09 cents, from 42.46 cents in 2013.<\/p>\n

Profit before interest, taxation, depreciation and amortisation (ebitda) declined to R123.8 million, from R198 million before.<\/p>\n

The group’s operational divisions comprise consumer and commercial goods and services, renewable energy, power management, water and telecommunications infrastructure.<\/p>\n

“The period under review has been challenging for the group. During the prior period, the group enjoyed the majority of the benefits derived from the Eskom consumer programme,” Ellies said.<\/p>\n

Ellies won the rights to supply decoders for OpenView HD (OVHD), a free to air satellite provider, in the second half of 2013.<\/p>\n

Ellies said that cash flows from operating activities declined by R132 million as a result of the working capital requirements to roll out the OVHD programme. A R150 million two year facility was raised to fund this.<\/p>\n

Looking ahead, the\u00a0group said its diversification into new products and ventures together with its alignments with leading technology partners, “enables the group to build on its existing skills, infrastructure and customer base”.<\/p>\n

“Management believes that the current difficult trading conditions will continue. We endeavour to leverage off our existing core competencies, our capacity and customer base,” Ellies said.<\/p>\n

Digital TV prospects<\/strong><\/p>\n

Ellies said that the late launch of OVHD in October, and stock placement into the retail market failed to take full advantage of the festive period. The roll out is expected to gain traction in the coming months.<\/p>\n

Sales of Multchoice’s DStv remain constant and it is anticipated to maintain its share in the entertainment market, the group said.<\/p>\n

It said that the Digital Terrestrial Television (DTT) migration roll-out in South Africa is keenly anticipated in the short term.<\/p>\n

New production machinery has been installed for increased local production and employment. “In the interim we continue to export DTT products into Africa,” Ellies said.<\/p>\n

Telecommunications<\/strong><\/p>\n

Ellies said that\u00a049% of its towers business unit was sold over the reporting period to allow for a broad-based ownership structure. “Growth in both revenue and earnings is expected.”<\/p>\n

Within South Africa, there is a growing trend amongst telecoms operators to secure electricity supply to meet their stringent up-time requirements, whilst investing in long-term strategies to mitigate rising energy costs, Ellies said.<\/p>\n

“Our key products of ‘green’ sites and the Integrated Power System continue to represent the largest growth within the business unit. As the uptake of the technology increases we are well placed to capitalise on this trend.”<\/p>\n

The group said its investment in SkyeVine has begun to reflect improvements. It is anticipated that these positive signs will continue.<\/p>\n

More on Ellies<\/h3>\n

Ellies expects a drop in earnings<\/strong><\/a><\/p>\n

Platco outlines OpenView channel plans<\/strong><\/a><\/p>\n

Ellies talks up \u201cfree-to-view\u201d TV<\/strong><\/a><\/p>\n

New free TV operator in South Africa<\/strong><\/a><\/p>\n

Ellies hopeful over DTT contract<\/strong><\/a><\/p>\n

Ellies delivers strong earnings<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Ellies reported a 3.8% decline in revenue for the six months ended October 2013, to R1.08 billion.<\/p>\n","protected":false},"author":10,"featured_media":52005,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[557,1164,26,6340,3201],"class_list":["post-51928","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hardware","tag-ellies","tag-eskom","tag-headline","tag-openview-hd","tag-skyevine"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/51928","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=51928"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/51928\/revisions"}],"predecessor-version":[{"id":51939,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/51928\/revisions\/51939"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/52005"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=51928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=51928"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=51928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}