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e-tv shows SABC how it's done

Nov 06 2009 18:06 Marc Hasenfuss

Cape Town - Television broadcaster e-tv played a starring role for empowerment group Hosken Consolidated Investments in the six months to end-September 2009.

Results released on Friday showed that HCI's media unit - which mainly comprises e-tv - managed a 19% hike in operating profits to R331m, even though revenue only grew 2.7% to R766m.

The performance from e-tv, which has recently extended its core free-to-air offering with subscription channels, stands in stark contrast to the tatty financial position of state broadcaster SABC.

The pre-tax profit donation of R289m from e-tv represented over 33% of HCI's pre-tax profits for the interim period.

HCI CEO Johnny Copelyn said 64% held e-tv saw a continued rise in adspend during the interim period.

He said recently launched subscription channel eNews passed breakeven point and was expected to make its first contributions to profits during the second half of the year.

Copelyn reckoned e-tv's expansion into four channels - eTV, eNews, eAfricaTV and eAfrica News - was significant.

He said recently eAfrica News had been launched as a three-hour per day block, but would be developed into a 24-hour continental news channel.

The continued strong performance by e-tv, which also has Remgro/Venfin as a major shareholder, has caught the attention of market watchers.

Recently Finweek24.com, commenting on e-tv's additional broadcast platforms, asked whether a JSE listing was not in the offing to fund expansion plans.

More bright spots Aside from e-tv, there were a few more bright spots for HCI.

The group's investments in limited Payout Machine Gaming (R31m) and Golden Arrow Bus Services (R70m) increased their contributions at operating profit level.

HCI's mainstay gaming investments (via Tsogo Sun and to a lesser extent Gold Reef Resorts and Century Casinos) showed an small increase in operating profits to R773m, but this was offset by a marked drop in profits from hotels (which plunged to R239m from R366m last year).

HCI's biggest bruises came from its automotive engineering interests (a loss of R22m) and the Khusela coal venture (a loss of R7m). HCI's natural gas investment in the US and its 70% stake in clothing and textile group Seardel realised pre-tax losses of R42m and R51m respectively.

Overall HCI's earnings before interest, tax, depreciation and amortisation for the interim period dropped 6% to R1.45bn, while group pre-tax profits dropped 9% to R863m.

- Fin24.com

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MALEMA
Nov 09 2009 09:30 Report this comment

NATIONALIZE, WE MUST NATIONALIZE ETV, MINES, ETC ETC. SO WE CAN WELL AND TRULY PHUKE UP THE NATION.

PUTZ
Nov 09 2009 08:19 Report this comment

SA WILL ALWAYS MAKE PROFITS IF THE BUSINESS IS INDEPENDENTLY RUN - THERE ARE NO ANTI-MONOPOLY LAWS - A COMPANY CAN CHARGE 600% MARKUP AS THERE IS NOBODY TO COMPETE WITH, AND THEY COLLUDE ANYWAYS. THE SABC/TELKOM/ESKOM/VODA/MTN/etc WOULD LAST ABOUT A YEAR IN THE REAL WORLD BEFORE ALL THEIR SUBSIDIES RAN OUT. THE REAL PROBLEM IN SA IS THEY BELIEVE ISIDINGO IS REAL - EVERY TIME THEY FIRE SOMEBODY IT TURNS INTO A SOAP - DONT EVEN KNOW THE DIFFERENCE BETWEEN GIRL/BOY ANYMORE - CANNOT EVEN COUNT/READ

Deeno
Nov 09 2009 07:42 Report this comment

With all the bad service still they threaten you to pay TV license. I receive one every other day. But there is hope for people like me. read this article... http://www.timeslive.co.za/business/money/article174278.ece

ZION PAY
Nov 08 2009 09:59 Report this comment

It is difficult to choose between SABC and ETV. ETV is ok if you are prepared to watch goons wrestling until the end of time. At least the commentators believe it is for real. SABC is addicted to their own 7de Laan and its multitude of replays as with DOOL BATB ecet ad nausium. SABC proudly referes to itself as the national broadcaster yet cannot screen a rugby match. Who will subsidise SABC come 2010. Pathetic

Robin Grant
Nov 08 2009 08:57 Report this comment

eTV may have turned a profit, but their programming has also gone down the tubes. How many times are they going to re-run the same outdated movies. They used to show fairly recent movies but this practice has been changed. I for one don't even bother to watch eTV any more because there is absolutely nothing worth watching on the channel.

Bertie
Nov 08 2009 08:09 Report this comment

Just shows what can be achieved if you keep politics out of business. Well Done.

Motho
Nov 07 2009 19:27 Report this comment

Etv and SABC are incomparable in teh first. Although, both organisations are broadcasters, etv is private company while SABC is a public broadcaster. In principle, SABC has provide certain services if even they might be unprofitable. However, this is no way supporting poor corporate governance at SABC.

WTF
Nov 07 2009 15:24 Report this comment

Etv makes money because it hardly has any competition other than the SABC.The free to air TV channels in this country are bad qulaity and unprofessional yet the government refuses to open up the airwaves.One only has to look to a country like Greece which has over 30 free to air channels to see the difference.The goverment does not want to free the airwaves in fear of losing its grip on power.This lack of freedom is a hallmark of African countries. No wonder crime is so high..people are bored!


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