A Cabinet shuffle resulting in the appointment of a new communications minister, and the imminent launch of a new satellite television service bode well for Ellies' growth in the new financial year, the group says.
This morning, the company, which provides consumer-oriented audio-visual equipment, as well as renewable energy solutions, said revenue gained 16.6%, to R1.99 billion, in the year to April and after-tax profit moved 36.8% higher, to R224.8 million.
Its largest division, consumer goods, which houses decoders, aerials and renewables, grew revenue 14.1%, to R1.3 billion. The infrastructure division, operating as Megatron Federal, saw revenue come in 23% higher, at R687.9 million.
In a statement, Ellies says it is well positioned to participate and benefit from digital television roll-out and is "hopeful that with recent departmental changes" implementation will be imminent.
New offerings
CEO Wayne Samson says the launch of Open View HD, in October, will also be significant for Ellies, which provides equipment such as decoders, satellite dishes and aerials. He explains that, while the channel offering is still under wraps, the free-to-view satellite station will offer about 15 to 20 channels, with five of these in HD.
Samson says the encrypted offering does not require a subscription fee, but the initial cost will be around R1 900 for the equipment. It will target the lower to middle living standards segment, he adds.
Ellies is also hopeful, based on what it is hearing, that recently-appointed communications minister Yunus Carrim will drive digital television. Carrim took over from embattled former minister Dina Pule earlier this month.
SA was meant to switch on digital television towards the end of last year, but this was delayed by a court bid by etv to allow free-to-air broadcasters to handle encryption. Since then, the award of the tender for state-subsidised boxes has been delayed until October.
While the department has indicated it will switch on during the remainder of this year, there is still no clarity on conditional access, and no official launch date. Samson says Ellies hopes to gain about 50% of the retail market.
Ellies has invested about R50 million into getting ready for digital television, which includes property, plant, equipment and materials, says Samson. Although the group has been holding aerials in stock ready for launch, the investment has not gone wasted as it is shipping these in Africa, he notes.
Samson says part of the investment in property, which has now reached about R86.1 million, has been to cater for digital television. He notes the group decided in 2010 to secure its own premises and hopes to be rent free in about eight years.
Ellies' green initiative, which includes a range of solar power products such as invertors, is growing nicely, says Samson. He says the shop-in-a-shop offering is available in Massbuilt outlets, such as Builders Warehouse, Builders Express, and Builders Trade Depot, but is being expanded into other retailers.
Ellies says it has launched Ellies Connect, which will use the shop within a shop concept to expand media, visual entertainment and Internet connectivity to Ellies customers.
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