Earnings rise for Kagiso Media

2011-02-21 17:52

Johannesburg - Kagiso Media [JSE:KGM] reported on Monday that its diluted headline earnings per share (HEPS) rose 31% to 98.6 cents for the interim period to December 2010 from 75.5c.

Revenue grew 12.4% to R515.3m from R458.4m despite increasing price competition and additional low-yielding advertising inventory released into the market by the TV sector.

For the period under review, earnings per share were higher than the comparable period at 98.8 cents (2009: 72.4c), with headline earnings per share rising 98.8 cents (2009: 75.7c).

Kagiso Media said the earnings per share (EPS) was higher than the comparative period, mainly due to the group's reorganisation, which happened in July 2010.

"The reorganisation was undertaken to centralise services, reduce the group's cost structure and result in a reduced group tax charge," it said.

Kagiso Media declared an interim dividend of 50 cents (2010: 35c).

The operating margin improved as a direct result of revenue growth and focus on cost management.

Operating profit increased from R155.6m to R179.9m.