Times Media Group (TMG) delivered a maiden dividend of 25 cents per share in announcing interim results for the period ended December 2013, despite continued difficult trading conditions.<\/p>\n
The group reported a diluted headline earnings per share of 172 cents from continuing operations, compared with 18 cents before.<\/p>\n
Revenue was flat at R2.142 billion, from R2.137b billion in the comparative period, while profit from operations improved to R325 million, from R63 million in 2012.<\/p>\n
“The period under review has been an eventful one for TMG. We concluded the disposals of I-Net Bridge, Random House Struik, Van Schaik Bookstore, Exclusive Books, Mega Digital and Nu Metro Cinemas, while acquiring several new businesses,” TMG said.<\/p>\n
“We continued our diversification into the broadcast medium, capitalising on the group’s powerful content base. Notably, we reduced our acquisition debt from R698 million to
\nR338 million as at the reporting date and to R298 million at the end of January 2014, through increased cash flow from operational efficiencies and proceeds from the disposal of non-core assets.”<\/p>\n
TMG said that the six month period has been a difficult trading period across the board for the group.<\/p>\n
However, it noted that several new sales initiatives have been successful. “We believe it is still possible to reduce operating costs in the Media division further, and we have embarked on several initiatives.”<\/p>\n
During the next six months, TMG said it will move its broadcast (TV and radio), films, music and certain digital businesses into a new division, reflecting an increased investment and focus in the broadcast and content arena.<\/p>\n
“The broader nature of our business compels us to work across various media platforms,
\nespecially for advertising sales,” TMG said.<\/p>\n
Media<\/strong><\/p>\n The group’s media division includes Sunday Times, Sowetan, Business Day, The Times, Daily Dispatch, The Herald, Financial Mail, TM Live (digital platforms: BDLive, Sowetan Live, Times Live, etc), magazine division, TV channel and production business.<\/p>\n TMG said this division achieved double-digit EBITDA growth during tough trading conditions and was ahead of the comparable period.<\/p>\n “Star performers were TM Live and the broadcast operations, which enjoyed record growth on the back of sharply increased revenues. TM Live delivered an EBITDA growth of 236% while broadcast profits grew by 580%.<\/p>\n “Our Magazine operation enjoyed an EBITDA growth of 70%, mainly from new titles The group noted that newspaper revenue was flat, but profit margins were maintained by reducing cost of sales and overhead increases below those of 2012.<\/p>\n “Restructuring our wholly-owned BDFM unit has been difficult, but we have returned it to profitability. Media’s half-year figures include retrenchment costs of R5 million,” TMG said.<\/p>\n TMG said that as it enters a new era with multiple new-media acquisitions, fundamental changes need to be made in how it interacts with the advertising industry from a sales perspective. Cross-media selling will be essential moving forward, it said.<\/p>\n Looking ahead, TMG said that the business environment in South Africa remains difficult, “but continues to provide selected opportunities. The broader African market offers exciting opportunities in broadcast sectors showing double-digit growth”.<\/p>\n Times Media bolsters radio portfolio<\/strong><\/a><\/p>\n Times Media: sales almost done<\/strong><\/a><\/p>\n TMG offloads Nu Metro Cinema<\/strong><\/a><\/p>\n Times Media sells I-Net Bridge<\/strong><\/a><\/p>\n Times Media finds buyer for Exclusive Books<\/strong><\/a><\/p>\n
\ndelivered to our vast TMG subscriber base,” it said.<\/p>\nMore on TMG<\/h3>\n