Foneworx Holdings' earnings were flat in the first half of the year, because of the negative impact of the 2010 Soccer World Cup on sales at two of its subsidiaries.
For the six months to December, revenue improved marginally by 0.9%, to R46.2 million, and gross profit dropped 5.6%, from R28.8 million to R27.2 million. Foneworx says the drop is because of higher sales costs at MediaWorx.
Its operating costs increased 16%, to R5.8 million, due to the start-up costs of its new Fax2Email platforms in Kenya, Zambia and Nigeria. Profit after tax grew 1%, to R9.8 million. Foneworx says the rest of the year will also be challenging, because of the “difficult” first six months.
However, the company is “positive” as it has expanded its BizWorx Fax2Email platforms in Zambia, Kenya and Nigeria. The company has also identified three other countries on the continent, and is doing preliminary work for launch later this year.
Foneworx has five operating entities, including BizWorx, which focuses on business-related products, and MediaWorx, which provides information and entertainment services. In development and piloting are CarbonWorx, DRWorx and IDWorx.
No one home
The listed company says two units, BizWorx and MediaWorx, were negatively impacted by the Soccer World Cup, which was held in the middle of last year.
BizWorx's services works on the basis that subscribers are in the office and carrying on “business as usual”, says Foneworx. The unit's offerings include Fax2Email, PC2Fax, document storage, fax on demand and auto receptionist.
“However, the World Cup had a negative impact on 'office occupancy' with a vastly reduced presence. Many office-goers were either at stadiums, fan parks or out of the country, thus reducing our business traffic,” says Foneworx.
MediaWorx's offerings were also impacted as people held off making decisions until the end of the tournament. MediaWorx provides information and entertainment services.
The company's share closed 5.41%, or 6c lower yesterday, at 105c. Its 52-week high was 130c on 16 December last year, while its 52-week low was on 4 May, when its share dropped to 82c.
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