Fin24

Kagiso revenue tops R1bn

2013-09-18 08:32

Cape Town - Kagiso Media [JSE:KML] announced on Wednesday that it topped R1bn in revenue for the first time to post a 30.8% increase in core headline earnings to R252.9m in the year to end-June 2013 compared with R193.4m in the previous comparable period.

It said in a statement that top and bottom line performance was bolstered by the full-year effect of the Juta acquisition.

Revenue rose 39.7% to R1.336bn in the review period from R956.5m before, while headline earnings per share came in at 168.8 cents from 135.5c before, an increase of 24.6%.

A final dividend of 40c per share was declared, up 33% from the previous period.

CEO Mark Harris said the “solid set of results” came on the back of improved trading conditions in Kagiso's segments of the media market. The group also drew significant benefit from the first full-year contribution of Juta & Co.

The after-tax contribution of associates rose by 45% to R32.1m (2012: R22.2m), driven by the strong performance of Kaya FM, supported by holdings in OFM, Heart 104.9 and Gagasi 99.5.

Harris said concerns over a consumer spending downturn in the fiscal year did not materialise, as trading conditions in South Africa in their categories generally improved.

“Once again, the media and communications industry relevant to our business segments reflected strong growth. The flow-through of radio media campaigns by the financial sector continued and, more recently, the telecommunication and automobile sectors positively influenced group results.”

Looking to the future Harris said digital is, and will be, core to everything Kagiso does. "New approaches, innovation and creativity will enable Kagiso Media to grow and compete. Strategically, this may require a longer term view of growth-related investments."