Naspers cuts staff at print ops

Johannesburg - Costs are being cut and headcounts reduced at Naspers' print media operations in South Africa, the media giant said on Wednesday.

It was releasing its results for the six months ended September 30 2008.

"The print media operations in South Africa generated marginal revenue growth of 4%.

"In light of depressed macro-economic conditions, costs are being cut and headcount reduced... prudent capital expenditure disciplines are also in place," the company said, adding that advertising felt the pinch more directly.

However, the company said that strategic investments made over the past few years in internet and pay-television operations "have positioned us well for the years ahead".

The pay-television businesses, traditionally not sensitive to the economic cycle, continued to grow with the equated subscriber base increasing by 171 000 households.

Naspers's technology business increased revenues by 51% as a result of organic growth and acquisitions.

Advertising revenues comprised 16% of the company's total revenue base, so the recent downward pressure on advertising revenues, which grew by five percent on a comparative basis, had had" a limited impact on the group".

Looking ahead, Naspers said it expected that the recent market turmoil would slow consumer spending.

"However, we expect the major emerging markets in which we operate to continue growing, albeit at a slower pace.

"Our businesses will adapt their strategies to this trend."

Naspers reported that for the six months ended September 30 2008, revenue grew by 32% and core headline earnings increased to R1.76bn.

Operating profit before amortisation and other gains/losses grew by 7% to R2.4bn.

- Sapa

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