MIH-owned M-Web Africa more than halved its losses in the six months to 30 September 2001 despite competition from Absa`s free Internet offering.
MIH results for the period show that M-Web Africa`s subscriber base was maintained at 245 000. The operation`s loss before interest, tax, depreciation and amortisation (EBITDA loss) improved from R136 million a year earlier to R61 million.
MIH Limited CEO Cobus Stofberg says the integration of M-Web`s Internet operations into the television platform since M-Web`s delisting from the JSE has progressed well.
Overall, however, the group recorded a reduced EBITDA loss of $1 million (2000: $4 million loss) on consolidated revenues of $364 million, the strong EBITDA growth in subscriber platforms being partially offset by the increased development cost of the MIH Technologies businesses.
"The strong growth in MIH`s African pay-television revenues and the continuing migration of subscribers from analogue services to higher value digital services has continued but the 62% growth in local currency EBITDA was mitigated by the strong US dollar," Stofberg says.
"In the six months under review we have focused on driving efficiencies and reducing operational cash burn across the group. There is no doubt that recent months have presented many industries with tough challenges demanding equally tough responses.
"Our core subscriber platforms businesses performed well but we have had to rigorously cut costs and scale some of the other MIH Technologies businesses."
The Mindport broadband business has been discontinued, resulting in a loss from discontinuing operations of $23 million.
Stofberg says the closure of the business is in line with the slowdown in broadband service revenues and market forecasts.
Interactive television software developer OpenTV has deployed its software in 20 million set-top boxes, with more than 48 network operators.
Irdeto Access, the group`s conditional access business and the world`s fourth-largest provider of such encryption products, deployed more than a million personalised digital smart cards during the period, taking total deployments to seven million.
"We will continue to focus on building the value of subscription services and the technologies we need to support their success," says Stofberg. "Our target is to reach positive EBITDA in the second half of this financial year and group consolidated EBITDA breakeven in the 2003 financial year."
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