In the past 12 months, the South African Broadcasting Corporation (SABC) spent about R2 billion on business deals with black economic empowerment (BEE) companies and small and medium enterprises (SMEs).
Speaking at yesterday`s results presentation at the SABC`s headquarters in Johannesburg, CEO Dali Mpofu said: "In the past financial year, the SABC procured R2 billion worth of products and services from black-owned businesses and SMEs."
The corporation also reported it had achieved year-on-year profit growth of 97%, with profit rising from R194 million in the 2004/05 period, to R383 million in 2005/06.
Revenue was just shy of the R4 billion mark, up by more than R600 million from the previous year. Commercial (advertising) revenue contributed 75% of this, with government putting in R50 million and "other income" coming to R186 million.
The SABC`s licensing revenue division received a special congratulatory mention from CFO Robin Nicholson. Licences contributed R739 million - up from R568 million last year.
Juggling act
Mpofu noted the delicate balance that must be maintained between being a public service broadcaster, a socially responsible organisation and a financially healthy company.
"We are seeing a fundamental increase in local content. SABC3, for example, is currently running 43% local content, which is well above the Independent Communications Authority of SA`s quota of 35%," he said.
However, Mpofu also noted the SABC`s success should not be measured solely on financial performance.
"Important as this is as a barometer for efficient management, it is our delivery against the freedoms enshrined in the Constitution, and against the requirements of the broadcasting charter that shows our true performance."
Giant`s footprints
SABC chairman Sonwabo Eddie Funde pointed to the significant growth in the SABC`s footprint over the past five years. In terms of total countrywide coverage, SABC1 has increased from 82% to 89%, SABC2 from 85% to 91%, and SABC3 from 71% to 77%.
On the radio side, Ikwekwezi`s footprint increased from 30% to 81%, Ligwalagwala from 34% to 68%, and Ukhozi FM from 68% to 87%, he added.
However, COO Solly Mokoetle stated: "Radio listenership statistics were significantly lower than a year ago - except for combined community radio, which recorded significant growth."
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