JSE-listed Kagiso Media reported improved turnover in the first half of the year, thanks to its recent acquisition of Juta.
Yesterday, the company said it improved turnover from continuing operations by 56%, to R709 million, in the six months to December. Profit from continuing operations only went up a percent, to R124.3 million. Last year, total profit was R574 million.
Core headline earnings, which are not a defined term under accounting rules, gained 9% to R115.3 million. Broadcasting accounted for the bulk of this, followed by its information and other unit, content and then new media.
Kagiso Media owns assets such as Jacaranda FM, East Coast Radio, Knowledge Factory, Mobil Alliance and Gloo. It previously sold its 50% stake in LexisNexis and acquired Juta and Company.
It says that revenue gained mostly due to the inclusion of Juta's results for the first time this period. "The seasonality of Juta's operations is expected to have a positive impact on profits in the next six months."
During the six months to December, it acquired an effective interest of 97.5% in market research company Kaufman Levin Associates for R26 million, which it paid for in cash. It also increased its shareholding in Gloo Digital Design and Knowledge Factory to 60% and 70%, respectively.
Kagiso says the new media division "continues to enjoy exceptional revenue growth" which gained 43% to R54.5 million. However, operating profit was flat due to ongoing investment in people, systems and marketing, to support the operations as they move from the early start-up stages to the next stage of growth.
Revenue from its information and other division was in line with expectations at R174.8 million, with Juta accounting for the bulk of this growth.
The broadcasting division saw revenue gain 14%, as Kagiso Media stations grew at a faster rate than the industry and increased market share between July 2012 and September 2012, the group says in its results commentary.
Cash generated from operations increased 15% to R167.5 million, mostly driven by the broadcasting division, and Kagiso has a cash balance of R416.9 million.
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