Aqua Online, which is awaiting regulatory approvals to delist from the JSE, incurred a headline loss of R10.3 million for the six months to end-December.
<B>Salient figures</B>
Aqua Online Holdings results for the six months to 31 December 2002.
Year-earlier figures in parentheses:
Revenue: R14.48m (R43.04m)
EBITDA: -R3.95m (R5.62m)
Income before tax: -R11.15m (-R3.46m)
Attributable income: -R11.15m (-R3.82m)
Headline earnings: -R10.34m (R3.26m)
HEPS: -3.95c (1.23c)
EPS: -4.26c (-1.44c)
Current assets: R17.22m (R56.56m)
Bank and cash: R10.58m (R42.17m)
Current liabilities: R6.05m (R7.98m)
Cash generated from operations: -R4.33m (R2.64m)
Cash flows from operating activities: -R7.51m (R18.93m)
NAV per share: 9.98c (25.93c)
NTAV per share: 7.15c (22.76c)
The headline loss compares with headline earnings of R3.26 million for the same period a year before.
"Aqua continues to experience difficult trading conditions both in the online gaming industry and e-services market," says CEO Brent Shahim.
The gaming division's revenues dropped as a result of continued pressure on clients' businesses as well as the strengthening of the rand, since the division's revenues are dollar-denominated.
Since the relocation of the division, all of the group's business operations are conducted outside SA.
Shahim says the enablement division has been rationalised and has since stabilised, although it experienced margin pressure during the six months.
He says headline earnings were also affected by the total retrenchment and relocation costs of R2.6 million.
Aqua's proposal to delist involves a series of deals to dispose of its gaming and enablement divisions as going concerns. The proceeds will be used to delist the company, which will be carried out by a voluntary winding-up of the listed shell after the disposals.
Shahim says there was some confusion when the group announced the delisting proposal in December. There was a misperception that the business units were liquidating, whereas they were being sold.
"Once the gaming and enablement divisions are sold, Aqua Online Holdings will become a listed cash shell on the JSE. We will be returning the cash to the Aqua shareholders via the distribution after a voluntary liquidation of the listed entity."
Aqua is to make an initial distribution of 14c a share to its shareholders.
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