Johnnic`s digital media division cut its losses significantly in the six months to end-September.
A loss of R1.9 million before interest, taxation, depreciation and amortisation (EBITDA) is an 82% improvement on the R10.7 million loss for the same period last year. Revenue grew 63% to R63.9 million.
The division consists of 10 online and multimedia companies held mainly through Johnnic e-Ventures.
CEO Neil Jacobsohn says the division is on track to break even at the EBITDA level by the March year-end.
He says while the performance is pleasing in a period that saw the demise of a number of local online ventures, the battle is far from over. "South African companies are still slow in recognising the benefits that are flowing worldwide from using Internet technology to improve the processes of doing business."
He says a number of global studies confirm that significant efficiencies and cost savings can be achieved by implementing Web-based services.
Johnnic Digital has over the past year withdrawn entirely from the high-risk consumer Internet market, with its 10 companies delivering content and services, using electronic delivery platforms, to the business and learning markets.
The largest of the companies, I-Net Bridge, provides specialist content and services to the professional investment community and Internet tools, services and content to the corporate market.
"Despite brutal conditions in the financial markets, I-Net Bridge has performed exceptionally well and has continued to show growth," Jacobsohn says.
He says he is looking forward to a strong second half of the year and is positive about the local e-business market.
Related stories:
Johncom enjoys fruits of new focus
Mobile growth helps Johnnic
Share
