Johannesburg - Media24, the print and media publishing business of Naspers, has recorded a trading profit of R217m as it cuts costs and streamlines its operations.
This is according to Media24’s interim report for the six months ended September 30 2015.
The company further reported consolidated revenue of R4bn for the period, which is only marginally up on the prior year.
The company said that its printing revenue grew by 5% year-on-year “driven by diversification into adjacent revenue streams”, book sales increased 7% and print advertising revenue declined by 6% year on year.
However, digital advertising delivered stronger revenue growth of 13%.
The company further announced a R142m investment in growth opportunities and that its core headline earnings ended the period on a profit of R36m compared to a loss of R51m in the prior year.
“This solid financial performance was largely due to group-wide efforts to reduce costs and streamline our traditional businesses,” said the company in its report.
“The subdued topline growth for the period reflects the impact of ongoing structural changes in the media industry – with advertising and circulation revenues most vulnerable – and a sluggish economy.
“On the digital front, mobile audiences grew rapidly and now outpace desktop users across our digital platforms. We continue to invest in digital media, ecommerce and online recruitment classifieds to diversify Media24’s portfolio and ready the business for long-term viability, with the consequent short-to medium-term impact on profitability,” added Media24.
*Fin24 is part of Media24 which is owned by Naspers.