JSE-listed holding company Johnnic has grown its revenue by 42% for the year to March, after disposing of the bulk of its non-core assets. The company will also continue its drive into Africa.
<B>Salient figures</B>
Johnnic results for the year to March 2002
Previous year`s figures in parentheses:
Revenue: R15.67b (R11b)
EBITDA: R3.98b (R3b)
Headline earnings per share: 313c (420c)
Current assets: R5.5b (R4b)
Current liabilities: R6.3b (R4.98b)
Cash and cash equivalents: R240m (R321.7m)
The bulk of the growth in revenues occurred in the telecommunications businesses where M-Cell`s revenue rose 49% to R12.4 billion, driven primarily by its growth in Nigeria.
The media and entertainment businesses also grew their revenues by 13% and 22% respectively.
Earnings before interest, depreciation, taxation and amortisation grew by 31% for the year under review.
However, headline earnings declined 30% from last year to R512 million as a result of once-off foreign exchange gains of R103.8 million earned last year on MIH offshore cash proceeds.
In addition, the previous year reflected an interest income of over R100 million earned on a R3 billion cash holding the group had prior to subscribing to the Johncom rights offer.
The black empowerment holding company reduced its debt to R434.5 million at the year-end and further still to R150 million subsequent to closing books. This compares to the R725 million interim debt figure.
The group disposed of many of its non-core assets during the reporting period, including its remaining interests in South African Breweries, various properties and a portion of its shares in MIH Limited.
Subsequent to year-end, the remaining shares in MIH were disposed of along with Johnnic`s investment in Sedgebrooke Investment.
Telecommunications was the star performer for the company during the financial year, contributing the bulk of total revenue for the year.
M-Cell subsidiary MTN Nigeria contributed 11% of M-Cell`s revenue for the year and management remains confident of further growth.
However, the group`s finance cost of R580 million for the year was associated mainly with the Nigerian operation`s start-up costs.
A brief look at MTN`s performance shows the service provider growing overall subscribers from 3.5 million to 4.8 million during the course of the year.
Johnnic management says the focus placed on subscriber value rather than subscriber volume enabled it to maintain margins.
MTN grew its postpaid subscriber base by 12% to 852 000 subscribers with an average revenue per user at R561 per month.
The prepaid sector grew by 23% to 3 million, but the group says the average revenue per user in this sector dropped to R105 per month.
While Johnnic has disposed of most of its non-core assets, it still holds 100% of Gallagher Estate and an 80% interest in casino operation Durban Add-Venture.
Johnnic CEO Jacob Modise has revealed that while the investment community can still expect some more corporate action, the group had not made a firm decision on further unbundling moves.
However, the group did announce that it is considering an invitation to apply for the 51% interest in the second national telecoms operator.
No dividend was declared for the year as the company wishes to retain capital for continued growth.
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