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Avusa's advertising woes continue

Jun 24 2010 08:13

Company Data

Avusa Ltd [JSE : AVU]

Last traded R20.00
Change R0.00
% Change 0.00%
Cumulative volume 360
Market cap R2.49bn

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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Share Share line Print

Johannesburg - Avusa [JSE:AVU], the media and entertainment group, on Thursday reported a 38% drop in full year diluted headline earnings to 149c a share from 242c previously.

The group said profit for the year had declined 46% to R179m for the year to end March 2010, from R332m for the year to end March 2009 as softer economic activity in a recessionary climate saw reduced support for Avusa's main value driver of advertising.

A dividend of 75c a share was declared.

Revenue from continuing operations decreased 4% from R4.9bn to R4.7bn.

This, together with a reduced gross margin due to recessionary market conditions, resulted in gross profit being 167 million rand, or 9%, lower at R1.7bn than the comparative period's R1.8bn.

The implementation of group-wide cost-cutting initiatives decreased operating costs by 2% to R1.3bn.

Advertising revenues were 17% lower than the prior year with the resultant operating profit at R247m, 39% below that of the comparative year's R405m.

For the half year Avusa had reported an operating profit 61% below the prior year but the second half operating profit contribution was stronger.

Avusa's financial position remains ungeared.

The company held net cash of R504m at end March 2010.   

 - I-Net Bridge

 
 
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