Moneyweb, the JSE-listed Internet company, has posted year-end figures showing earnings per share of 2.2c, slightly above the listing forecast. It has also announced a joint venture with radio station Classic FM.
Moneyweb reported a turnover of R4 million for the year to March 2000, lower than the forecast figure of R5.8 million. The company says this can be attributed to the decision to close two Web sites that had not achieved their targets by the interim stage.
"The financial results reflect Moneyweb`s commitment to trading profitably and its conscious rejection of the philosophy of revenue growth at any costs," says the board.
The company attributes its operating profit of R1.4 million exceeding its forecast figure by 33% to the early action in closing the sites.
Earnings per share came in at 2.2c, up 10% on the forecast figure.
Flagship Web site Moneyweb.co.za has grown its page impressions from 220 000 to 350 000 a month. Moneyweb says Myownbusiness.co.za is flourishing and is expected to see profitability early in the new financial year.
Gauteng radio station Classic FM (CFM) has entered into a joint venture with Moneyweb to host and syndicate a daily, hour-long, business talk show.
Moneyweb will acquire a strategic shareholding in CFM from Liberty Group.
The deal will be settled by the issuing of five million new Moneyweb shares at 100c per share.
Moneyweb will also extend a loan of R2 million to CFM, which may be converted into a further equity stake in the radio station. Moneyweb`s stake in CFM will not exceed 19.9%.
In terms of the joint venture, Moneyweb and CFM will share revenue from advertising generated by the show on a 50/50 basis.
The deal is subject to approval of the Independent Broadcasting Association and the completion of a due diligence.
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