| Wed 10 Oct 2007, 10:27 | | MNY - Moneyweb - Unaudited results for the six mon |
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MNY
MNY
MNY - Moneyweb - Unaudited results for the six months ended 30 September 2007
MONEYWEB HOLDINGS LIMITED
(Registration No: 1998/025067/06)
ISIN code: ZAE000025409
Share code: MNY
("Moneyweb" or "the Company")
Unaudited results for the six months ended 30 September 2007
- Revenues rise 30% to new record for half year
- Ebitda margin improves to over 13%
- Headline earnings jump 144%
- Strong second half in prospect
- Announcement of BEE transaction imminent
Consolidated Income Statements
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30-Sep-07 30-Sep-06 31-Mar-07
R`000 R`000 R`000
REVENUE 12,355 9,538 19,114
Advertising 11,792 8,827 17,706
Newsletters 563 711 1,408
Operating profit before investment
income, fair value adjustment,
depreciation, amortisation and
impairment 1,614 764 1,957
Depreciation (376) (232) (434)
Investment income 23 9 32
Fair Value adjustment of investment - 3 2
Profit before taxation 1,261 545 1,557
Taxation (387) (178) (524)
Net profit for the period 874 367 1,033
Reconciliation of headline earnings:
Basic profit for the period 874 367 1,033
Profit on disposal of tangible asset - - (2)
Fair Value adjustment on investments - (3) (3)
Headline earnings 874 364 1034
Basic earnings per share(cents) 1,32 0.55 1,55
Fully diluted earnings per share
(cents) 1,32 0.55 1,55
Headline earnings per share (cents) 1,32 0.54 1,55
Fully diluted headline earnings per
share (cents) 1,32 0.54 1,55
Number of shares (000`s)
- issued closing (net of treasury
shares) 66 060 67 000 66,472
- weighted average 66 127 66 992 66,733
- fully diluted weighted average 66 193 67 057 66,798
Consolidated Balance Sheets
Unaudited Unaudited Audited
30-Sep-07 30-Sep-06 31-Mar-07
R`000 R`000 R`000
ASSETS
Non-current assets
Tangible assets 979 1,014 846
Intangible assets 1299 - 677
Other investment 23 24 23
Deferred taxation 250 499 251
2,552 1,537 1,797
Current assets
Trade and other receivables 5,294 2,956 5,505
Cash and cash equivalents 3,603 4,191 2,920
8,897 7,147 8,425
Total assets 11,448 8,683 10,222
EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium 4,938 5,383 5,169
Accumulated profit 2,099 1,313 1,980
Ordinary shareholders` interest 7,037 6,695 7,149
Current liabilities
Trade and other payables 3,564 1,560 2,522
Deferred revenue 600 309 335
Taxation 247 118 216
4,411 1,988 3,073
Total equity and liabilities 11,448 8,683 10,222
Net asset value per share (cps) 10,6 10,0 10,7
Net tangible asset value per share (cps) 8,7 10,0 9,7
Statement of changes in shareholders` equity
Share Capital Share Premium Accumulated Total
Profit
Balance at 1 April 2006 67 5,316 1,325 6,708
Net profit for the
year ended 31 March 2007 0 0 1,033 1,033
Ordinary dividend 0 0 (378) (378)
Treasury shares
Purchased - (214) - (214)
Balance at 1 April 2007 67 5,102 1,980 7,149
Net profit for the year
six months ended 30 Sep 2007 0 0 874 874
Ordinary dividend 0 0 (754) (754)
Treasury shares purchased 0 (231) 0 (231)
Balance at 30 September 2007 67 4,871 2,099 7,037
Consolidated cash flow statements
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30-Sep-07 30-Sep-06 31-Mar-07
R`000 R`000 R`000
Cash flows from operating activities
Cash generated by operations 1,880 639 1,858
Movements in working capital 1,254 (81) (1,668)
Cash generated by operating activities 3,133 559 190
Investment income 23 9 32
Taxation paid (356) - -
Dividend paid (754) (378) (378)
Net cash flows from operating
activities 2,045 191 (156)
Cash flows from investing activities
Acquisition of tangible assets (1,131) (79) (791)
Proceeds on disposal of tangible assets - 2 5
Net cash flows from investing
activities (1,131) (77) (786)
Cash flows from financing activities
Acquisition of treasury shares (231) - (215)
Net cash flows from financing
Activities (231) - (215)
Net movement in cash and cash
equivalents for the period (683) 114 (1,157)
Cash and cash equivalents at
beginning of period 2,920 4,077 4,077
Cash and cash equivalents at
end of period 3,603 4,191 2,920
Commentary
Moneyweb continued its progress during the half year to end September, reaping
the benefit of tough decisions taken in recent years.
Revenues rose 30% and are on track to post a record for the full financial year.
An expanding profit margin (13%) together with a further reduction in the number
of issued shares boosted headline earnings 144% to 1,32c a share.
The period began poorly with the broadcasting side hurt by disruptions to its
flagship Moneyweb Power Hour caused by its host station`s commitment to
broadcasting the Cricket World Cup. This setback was soon reversed, however,
with momentum building at the operating level towards the end of the reporting
period.
With the exception of the company`s offshore arm Mineweb.com, all areas of the
business made a positive contribution in the six months to end September. After
an extended period of losses, Mineweb returned to profitability towards the end
of the period under review.
The sharply increased depreciation charge reflects the past year`s investment in
a customised publishing system. This has been key to the company`s future as it
provides Moneyweb with the techno logy platform from which to embark upon its
strategy of introducing additional web sites.
For the first time in six years, new websites were launched during the period
under review. Established as partnerships with their editors, the new titles
set up during the first half of the financial year are tycoon.co.za;
politicsweb.co.za; sportingweb.co.za; and realestateweb.co.za
Operating cash flow trebled to R1,9m reflecting the underlying health of the
operations. After the investment in new technology, modest share buy-backs and
the payment of 2007`s dividend, a operating surplus of R683 000 raised the
company`s net cash balance to R3,6m.
Prospects
Notwithstanding an aggressive expansion programme, management expects the
stronger profit trend to continue during the second half of the financial year.
Two further websites are expected to be launched before the March year end.
The announcement of a Black Economic Empowerment transaction is imminent. This
will result in a modest injection of capital and position the company to apply
for broadcasting and online gambling licences.
Accounting Policies
The condensed interim consolidated financial statements are prepared in
accordance with IAS 34. - Interim Financial Reporting and the accounting
policies conform to IFRS. The accounting policies applied in the preparation of
the interim consolidated financial statements are consistent with the policies
in the previous year.
Andrew Smith Alec Hogg
Chairman Chief Executive Officer
Rosebank, Johannesburg
10 October 2007
Designated advisor
Deloitte and Touche Sponsor Services (Pty) Ltd
Date: 10/10/2007 10:27:02 Produced by the JSE SENS Department.
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