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Johannesburg - Media and entertainment group Avusa [JSE:AVU] on Thursday reported a 17% increase in diluted headline earnings per share to 174c for the year ended March 2011 from 149c a year ago.
Revenue grew 13% to R5.3bn, while profit from operations was 30% higher R324m.
These financial results included the Retail Solutions business for five months. Avusa acquired the Retail Solutions business, comprising Hirt & Carter and Universal Print Group, from UHC Communications.
The group said the Retail Solutions business unit had "performed well above expectations".
Avusa said the R800m acquisition was inexpensive, timeous and strongly supported its strategy to grow new markets, diversify revenues and increase enterprise-wide earnings.
The group's traditional businesses satisfy discretionary income spend, where consumer confidence has not yet fully returned, it said.
"While we have retained or grown volumes and market shares, the effects of price deflation and our continuing prudent investment in digital has kept earnings flat," it said.
During the review period, a three-year revolving credit facility of R230m was raised to part-finance the Retail Solutions acquisition. Avusa's balance sheet remained strong, the group said.
The media business unit enjoyed strong profit growth despite the uneven nature of the economic recovery, Avusa said.
"Our newspapers grew advertising revenue by 10%, aided by the diversification of our revenue streams after restructuring the advertising team to focus on key advertising sectors," it added.
The Times had enjoyed strong circulation growth, producing its first full-year profit and was now well entrenched as an English-language daily newspaper in Gauteng, KwaZulu-Natal and the Western Cape.
While its digital businesses performed solidly, Avusa said profit contributions were impacted by significant investments in new-generation products and in I-Net Bridge's BusinessLive initiative.
As for the retail business unit, this reflected a good performance in academic book retail at Van Schaik Bookstore, but disappointing results from general book retail at Exclusive Books.
Elsewhere, the entertainment business's profitability was impacted by losses of R17m incurred by the interactive gaming business, including stock write-offs of R19m, and a loss in the music business of R12m.
"While Nu Metro Cinemas had a positive start to the year, weaker content in the second half of the year affected overall performance. Although cost-control remained a focus, administered prices such as electricity and rates and taxes increased sharply," Avusa said.
Going forward, Avusa said it would see the benefits in the coming year of the growing annualised contribution from Retail Solutions and of the current positive indications of improving advertising support for media.
Revenue grew 13% to R5.3bn, while profit from operations was 30% higher R324m.
These financial results included the Retail Solutions business for five months. Avusa acquired the Retail Solutions business, comprising Hirt & Carter and Universal Print Group, from UHC Communications.
The group said the Retail Solutions business unit had "performed well above expectations".
Avusa said the R800m acquisition was inexpensive, timeous and strongly supported its strategy to grow new markets, diversify revenues and increase enterprise-wide earnings.
The group's traditional businesses satisfy discretionary income spend, where consumer confidence has not yet fully returned, it said.
"While we have retained or grown volumes and market shares, the effects of price deflation and our continuing prudent investment in digital has kept earnings flat," it said.
During the review period, a three-year revolving credit facility of R230m was raised to part-finance the Retail Solutions acquisition. Avusa's balance sheet remained strong, the group said.
The media business unit enjoyed strong profit growth despite the uneven nature of the economic recovery, Avusa said.
"Our newspapers grew advertising revenue by 10%, aided by the diversification of our revenue streams after restructuring the advertising team to focus on key advertising sectors," it added.
The Times had enjoyed strong circulation growth, producing its first full-year profit and was now well entrenched as an English-language daily newspaper in Gauteng, KwaZulu-Natal and the Western Cape.
While its digital businesses performed solidly, Avusa said profit contributions were impacted by significant investments in new-generation products and in I-Net Bridge's BusinessLive initiative.
As for the retail business unit, this reflected a good performance in academic book retail at Van Schaik Bookstore, but disappointing results from general book retail at Exclusive Books.
Elsewhere, the entertainment business's profitability was impacted by losses of R17m incurred by the interactive gaming business, including stock write-offs of R19m, and a loss in the music business of R12m.
"While Nu Metro Cinemas had a positive start to the year, weaker content in the second half of the year affected overall performance. Although cost-control remained a focus, administered prices such as electricity and rates and taxes increased sharply," Avusa said.
Going forward, Avusa said it would see the benefits in the coming year of the growing annualised contribution from Retail Solutions and of the current positive indications of improving advertising support for media.
