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MNY
MNY
MNY - Moneyweb - Unaudited condensed financial results for the six
months ended 30 September 2009
Moneyweb Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration No: 1998/025067/06)
JSE code: MNY ISIN: ZAE000025409
("Moneyweb" or "the company" or "the group")
UNAUDITED CONDENSED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 30
SEPTEMBER 2009
Moneyweb breaks records in best ever half year
Core online community grows 24%; total visitors up 44%
Revenues rise 32% to best since listing in 1999
Operating and headline profits at record for half year
Ebitda margin expands to 17.8%
Company positioned for a strong second half
Condensed Group Income Statement
Notes Unaudited Unaudited Audited
6 months 6 months 12
months
30-Sep-09 30-Sep-08 31-Mar-
09
R`000 R`000 R`000
Revenue 13 062 9 846 20 979
Advertising 12 615 9 255 19 897
Newsletters 447 591 1 082
Profit/(loss) before investment income, 2 333 (1 197) (199)
fair value adjustment, depreciation,
amortisation and impairments
Depreciation and amortisation (420) (431) (856)
Investment income 148 213 598
Finance cost - - (27)
Fair value adjustment of 5 (6) (11)
investment
Profit on disposal of intangible 0 1 860 1 860
asset
Net profit before taxation 2 066 439 1 365
Taxation (581) (44) (741)
Profit from joint venture 161 - 644
Net profit for the period 1 645 395 1 268
Reconciliation of headline
earnings
Net profit for the period 1 645 395 1 268
Profit on disposal of intangible - (1 860) (1 414)
asset
Headline earnings/(loss) 1 645 (1 459) (146)
Earnings per share (cents) 2.17 0.52 1.67
Fully diluted earnings per share 2.17 0.52 1.67
(cents)
Headline earnings/(loss) per share 2.17 (1.91) (0.19)
(cents)
Fully diluted headline earnings/(loss) 2.17 (1.91) (0.19)
per share (cents)
Number of shares (000`s)
- Issued closing (net of 75 775 76 189 76 037
treasury)
- weighted average 75 777 76 189 76 037
- fully diluted weighted average 75 777 76 255 76 037
Condensed Group Balance Sheet
Unaudited Unaudited Audited
30-Sep-09 30-Sep-08 31-Mar-
09
ASSETS R`000 R`000 R`000
Non-current assets
Tangible assets 2 184 907 778
Intangible assets 3 622 2 420 2 776
Investment in joint ventures 945 - 863
Other investment 12 11 7
Deferred taxation 457 225 457
7 220 3 563 4 881
Current assets
Trade and other receivables 6 925 8 652 8 098
Cash and cash equivalents 3 607 5 695 8 030
10 532 14 347 16 128
Total assets 17 752 17 910 21 009
EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium 11 755 11 932 11 805
Accumulated profit 3 561 2 328 2 842
Ordinary shareholders` interest 15 317 14 260 14 647
Non-current liabilities
Current liabilities
Trade and other payables 1 198 2 656 2 598
Deferred revenue 83 718 3 190
Income tax payable 1 155 276 574
2 435 3 650 6 362
Total equity and liabilities 17 752 17 910 21 009
Net asset value per share (cents) 20.2 18.7 19.3
Net tangible asset value per share 15.4 15.5 15.7
(cents)
Condensed Group Statement of Changes in
Equity
Share Share Foreign Accumulated
Total
capital premium currency profit
translation
reserve
R`000 R`000 R`000 R`000
R`000
Balance at 1 April 2008 76 11 856 - 2 699
14
631
Net profit for the year ended 31 - - - 1 268
1 268
March 2009
Foreign currency translation - - (363) -
(363)
reserve
Ordinary dividend paid - - - (762)
(762)
Treasury shares purchased (127)
(127)
-
Balance at 1 April 2009 76 11 729 (363) 3 205
14
647
Net profit for the six months ended 30 - 1 645
1 645
September 2009 -
-
Foreign currency translation (165) -
(165)
reserve - -
Ordinary dividend paid - (762)
(762)
- -
Treasury shares purchased - (50) - -
(50)
Balance at 30 September 2009 76 11 679 (528) 4 089
15
317
Condensed Group Cash Flow
Statement
Unaudited Unaudited Audited
6 months 6 months 12 months
30-Sep-09 30-Sep-08 31-Mar-09
R`000 R`000 R`000
Cash flows from operating
activities
Cash (utilized)/generated by (780) (783) 2 969
operations 1
Movements in working capital (229) (1 657) (1 161)
Cash (utilized)/generated by (1 008) (2 440) 1 808
operating activities
Investment income 153 213 587
Finance cost - - (27)
Taxation paid - 7 (633)
Dividend paid (762) (766) (762)
Net cash flows from operating (1 618) (2 986) 975
activities
Cash flows from investing
activities
Acquisition of intangible assets (1 069) (447) (1 013)
Acquisition of tangible assets (1 605) (105) (217)
Investment in joint ventures (80) - (824)
Proceeds on disposal of - 1 860 1 860
intangible assets
Proceeds on disposal of tangible - - 4
assets
Net cash flows from investing (2 755) 1 308 (190)
activities
Cash flows from financing
activities
Acquisition of treasury shares (50) - (127)
Net cash flows from financing (50) - (127)
activities
Net movement in cash and cash (4 424) (1 678) 658
equivalents for the period
Cash and cash equivalents at 8 030 7 372 7 372
beginning
Cash and cash equivalents at end 3 607 5 695 8 030
of period
Notes to the Unaudited Condensed
Financial Results
For the six months ended 30
September 2009
1. Cash generated by operations
Operating profit/(loss) before
depreciation and amortisation 2 333 (1 197) (199)
Adjustments:
Profit from joint ventures
161 - 644
Movement in deferred revenue
(3 107) 414 2 887
Foreign currency translation
reserve (165) - (363)
(780) (783) 2 969
Financial results
During the half year to end September, Moneyweb enjoyed strong growth in
its core audiences and its highest ever revenues and profit of any
six-month period since. Compared with the same period in 2008, revenues
rose 32,6% to just over R13m. This generated operating profits of
R2,3m translating into a profit margin of 17.8%. The improvement is due to
strong growth in revenues at the core Internet properties and excellent
advertising support on Moneyweb`s three business radio programmes.
Profits are not comparable with the same period in 2008 as those numbers
were distorted by the settlement of a defamation suit in the London
High Court. Although not strictly comparable for seasonal reasons, as an
indication of the performance, operating profit in the half year to
September was 133% above that of the previous six months.
Earnings per share of 2,17c in the six months under review are up four-
fold on the comparable period last year and comfortably exceed the 1,67c
posted for the previous full financial year. At the headline earnings
level, a turnaround of 4c a share was achieved.
The company`s relocation to new offices in Melrose Arch was achieved
timeously and comfortably within budget. Other capital investments during
the half year included the purchase of the Moneyweb.com and Moneyweb.co.uk
URLs; development of the financial aggregator,
Moneywebmarket.co.za; and the comprehensive re-design of the flagship
Moneyweb.co.za site.
As planned, these capital investments exceeded the half-year`s operating
profit, resulting in a drop from a net R5.2m in cash holdings at the March
year
end to R3.6m at end September. Shareholders are referred to the note
accompanying the cash flow statement for explanation of the impact of
deferred revenue. The company continues to adhere to its policy of
maintaining a strong, debt-free balance sheet.
Operating results
Moneyweb`s Internet Publishing business continues to benefit from lower
cost and more readily available bandwidth in South Africa; and rapid
expansion of its international operation, Mineweb.com. The core audience
of its eight websites - unique visitors entering via the home page -
rose 24% year-on-year to 221 500 people during September 2009.
Total unique visitors to the Moneyweb websites, a measure which includes
sporadic and accidental visitors, spiked to 628 000 in September,
up 44% year on year and boosted by strong growth into the global arena by
Mineweb.com. Together with the radio and newspaper audiences,
Moneyweb`s products now reach over 1,5m people daily.
The average core monthly audience at flagship website Moneyweb.co.za fell
by 8.5% to 91 000, due to a cooling off in peripheral interest as
the financial world settled down after the panic during 2008. Momentum at
the company`s international title Mineweb.com continued to build
during the half year with its core average monthly audience up 39% to 72
000 people.
Three of the niche websites launched in 2007 - politicsweb; realestateweb;
and moneywebtax - continued to grow exponentially in the half year
and now have their own dedicated communities of 17 000; 12 500 and 8 500
people respectively.
The company`s daily radio programmes aired during prime time on the
national broadcaster`s RSG, SAFM and Lotus FM radio stations, enjoyed
growth in terms of both audience and advertising growth. Higher
advertising was also enjoyed by the partnership with The Citizen
newspaper, for whom Moneyweb produces the business
section.
Prospects
The company`s improved financial performance has been a decade in the
making and is likely to continue despite the broader economic recession.
Although at an early stage, introduction of cheaper and more plentiful
broadband in South Africa is having a clear impact on the company`s
financial situation. This is evident in higher demand by advertisers for
exposure on the company`s websites both directly and through Google
Adsense. The trend is expected to accelerate.
The company`s launch of South Africa`s first independent financial
services aggregator, Moneywebmarket.co.za, has been warmly received by the
Moneyweb community. Usage is expected to gather momentum as bandwidth
provision expands and knowledge grows around the benefit of being
able to shop online for directly comparable car and home insurance from
numerous providers. This project, which has taken almost three years from
gestation to launch, will start making a contribution to profit in the
second half of the current financial year.
Moneyweb`s cautious expansion into the international arena began with the
launch of Mineweb.com in 2000. Today a quarter of the company`s full
time staff are based outside of the South African home base and a similar
portion of its revenue is generated in hard currencies. The trend will
continue through the launch in January of Moneyweb.com, driven by
Moneyweb`s now-US based former head of editorial Felicity Duncan. The
first step into non-SA Africa is also being taken through
Botswana. Both projects are expected to start making a contribution,
albeit small, in the latter stage of the current financial year.
Various smaller initiatives are underway which will enhance the company`s
audience reach and financial performance. The directors are confident
that the trend will continue in the second half of the year to end March
2010.
Dividend policy
In line with group policy no dividend has been declared for the interim
period.
Post balance sheet events
There are no material events subsequent to the end of the interim period
that have not been reflected in the interim financial statements or that
require further disclosure.
Basis of preparation
Statement of compliance
The condensed financial statements comprise a consolidated balance sheet,
a consolidated income statement, consolidated statement of changes
in equity and consolidated cash flow statement for the six months ended 30
September 2009.
The condensed financial statements have been prepared in accordance with
the recognition and measurement criteria of International Financial
Reporting Standards (IFRS) and the presentation and disclosure
requirements of IAS34: Interim Financial Reporting, JSE Listings
Requirements
and South African Companies Act.
The same accounting policies and methods of computation are followed in
the interim financial statements as compared with the annual financial
statements for the year ended 31 March 2009.
Basis of measurement
The condensed financial statements have been prepared on the historical
cost basis with the exception of certain financial instruments that are
stated at fair value.
Going concern
The condensed financial statements have been prepared on the going-concern
basis since the directors have every reason to believe that the
company has adequate resources in place to continue in operation for the
foreseeable future.
On behalf of the Board
Alec Hogg
Chief Executive Officer
30 October 2009
Corporate Information
Non executive directors: A Smith (Chairman); E A Jay; L Sipoyo; T Ncube
Executive directors: A B Hogg (CEO); L M Hogg; DG Wessels
Registration number: 1998/025067/06
Registered address: 20 The Piazza, Second Floor, Melrose Arch, 2196
Postal address: PO Box 8, Melrose Arch, 2076
Company secretary: D G Wessels
Telephone: (011) 344 8600
Facsimile: (011) 344 8601
Transfer secretaries: Computershare Investor Services (Pty) Limited
Auditors: BDO Spencer Steward (Jhb) Inc
Designated Adviser: Vunani Corporate Finance
Date: 30/10/2009 16:12:01 Produced by the JSE SENS Department.
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