|
MNY
MNY
MNY - Moneyweb Holdings Limited - Unaudited condensed financial results
for the six months ended 30 September 2010
Moneyweb Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration No: 1998/025067/06)
(JSE code: MNY ISIN code: ZAE000025409)
("Moneyweb" or "the company" or "the group")
UNAUDITED CONDENSED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED
30 SEPTEMBER 2010
Moneyweb records strong first half performance:
Revenue increased 19% to best since listing in 1999
Operating profit up 4% and net profit before tax up 1%
Ebitda margin at 16%, slightly down from the prior corresponding period
Positioned for meaningful growth
Condensed Group Statement of
Comprehensive Income
Note Unaudited Unaudited Audited
s
6 months 6 months 12
months
30-Sep-10 30-Sep-09 31-Mar-
10
R`000 R`000 R`000
Revenue 15 528 13 062 27 159
Advertising 15 171 12 615 26 159
Newsletters 357 447 1 000
Profit/(loss) before investment income, 2 436 2 333 3 941
fair value adjustment, depreciation,
amortisation and impairments
Depreciation and amortisation (627) (420) (962)
Investment income 268 148 358
Finance cost - - (34)
Fair value adjustment of investment and 2 5 7
financial instruments
Impairment of financial assets - - (1 118)
Loss on disposal of tangible asset - - (9)
Net profit before taxation 2 079 2 066 2 183
Taxation (662) (581) (732)
Profit from joint venture 129 161 175
Net profit for the period 1 546 1 646 1 626
Other comprehensive income
Exchange differences on translating (47) (165) (516)
foreign operations
Total comprehensive income for the 1 499 1 481 1 110
period
Reconciliation of headline earnings
Net profit for the period 1 546 1 646 1 626
Loss on disposal of tangible asset - - 9
Headline earnings/(loss) 1 546 1 646 1 635
Earnings per share (cents) 1.84 2.17 2.15
Headline earnings per share (cents) 1.84 2.17 2.16
Number of shares (000`s)
- Issued closing (net of treasury) 106 575 75 775 75 777
- weighted average 84 190 75 777 75 777
Condensed Group Statement of Financial
Position
Unaudited Unaudited Audited
30-Sep-10 30-Sep-09 31-Mar-
10
ASSETS R`000 R`000 R`000
Non-current assets
Tangible assets 2 440 2 184 2 226
Intangible assets 3 696 3 622 4 077
Investment in joint ventures 1 054 945 1 108
Other investment 16 12 14
Income tax receivable 100 - -
Deferred taxation 147 457 147
7 453 7 220 7 572
Current assets
Trade and other receivables 8 482 6 925 8 820
Cash and cash equivalents 23 038 3 607 5 935
31 522 10 532 14 755
Total assets 38 975 17 752 22 327
EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium 32 699 11 755 11 788
Accumulated profit 3 935 3 561 3 194
Ordinary shareholders` interest 36 634 15 317 14 982
Non-current liabilities
Current liabilities
Trade and other payables 1 956 1 197 2 520
Deferred revenue 385 83 3 873
Income tax payable - 1 155 952
2 341 2 435 7 345
Total equity and liabilities 38 975 17 752 22 327
Net asset value per share (cents) 34.4 20.2 19.8
Net tangible asset value per share 30.9 15.4 14.4
(cents)
Condensed Group Statement of Changes
in Equity
Share Share Translatio Accumulate Total
capita premiu n of d profit
l m foreign
operations
R`000 R`000 R`000 R`000 R`000
Balance at 1 April 2009 76 11 729 (363) 3 205 14 647
Total comprehensive income - - (516) 1 626 1 110
for the year ended 31 March
2010
Ordinary dividend paid - - - (758) (758)
Treasury shares purchased (17) - - (17)
0
Balance at 1 April 2010 76 11 712 (879) 4 073 14 982
Total comprehensive income - - (47) 1 546 1 499
for the six months ended 30
September 2010
Ordinary dividend paid - (758) (758)
- -
Ordinary shares issued 32 20 879 - - 20 911
Balance at 30 September 2010 108 32 591 (926) 4 861 36 634
Condensed Group Statement of Cash Flow
Unaudited Unaudite Audited
d
6 months 6 months 12 months
30-Sep-10 30-Sep- 31-Mar-10
09
R`000 R`000 R`000
Cash flows from operating activities
Cash (utilized)/generated by operations 1 (970) (778) 3 156
Movements in working capital (226) (231) (800)
Cash (utilized)/generated by operating (1 197) (1 008) 2 356
activities
Investment income 270 153 364
Finance cost - - (34)
Taxation paid (1 713) - (353)
Dividend paid (758) (762) (758)
Net cash flows from operating (3 398) (1 618) 1 575
activities
Cash flows from investing activities
Acquisition of intangible assets (75) (1 069) (1 795)
Acquisition of tangible assets (390) (1 605) (1 948)
Investment in joint ventures - (80) -
Repayment of loan receivable 56 - 90
Net cash flows from investing (409) (2 755) (3 653)
activities
Cash flows from financing activities
Ordinary shares issued 20 911 - -
Acquisition of treasury shares - (50) (17)
Net cash flows from financing 20 911 (50) (17)
activities
Net movement in cash and cash 17 104 (4 423) (2 095)
equivalents for the period
Cash and cash equivalents at beginning 5 935 8 030 8 030
Cash and cash equivalents at end of period 23 039 3 607 5 935
Notes to the Unaudited Condensed Financial
Results for the six months ended 30
September 2010
1. Cash generated by operations
Operating profit/(loss) before investment
income, fair value adjustment, depreciation 2 436 2 333 3 941
and amortisation and impairments
Adjustments:
Profit from joint ventures 129 161 175
Profit on disposal of tangible asset - - (9)
Impairment of financial asset - - (1 118)
Movement in deferred revenue (3 488) (3 107) 683
Foreign currency translation reserve (47) (165) (516)
(970) (778) 3 156
Financial results
During the half year to end September, Moneyweb continued to enjoy strong
revenue growth. Compared with the same period in 2009 revenue rose 19% to
just over
R15.5m, generating an operating profit of R2.4m. The improvement is due to
continuing growth in revenue experienced by Moneyweb`s core Internet
properties, moneyweb.co.za and mineweb.com and its three business radio
programmes SAFM, RSG and Lotus FM.
The operating margin reduced from 17.8% to 16% in relation to the
comparative period, which is attributable to additional costs arising from
internal restructuring designed to support the group`s strategic initiatives
and enhance its commercial capability, as well as the costs of completing
the Caxton transaction. All these elements are expected to accelerate
revenue growth, which we expect to materialise in the second half of the
year and beyond.
Earnings per share for the half year of 1.84 cents reflect the 35% dilution
resulting from the issue of 30.8m shares in August 2010, which gave rise to
net proceeds of R20.9m.
As consistent with prior comparative periods, shareholders are referred to
the note accompanying the cash flow statement for explanation of the impact
of deferred revenue on operating cash flows for the six month period. This
is solely attributable to the timing of a major headline advertising
renewal, the related cash being collected in the second six month period of
each financial year. Cash resources at the end of the period end stood at
R23m and the group has no debt. We expect our cash resources to improve
further in the second half of the year.
Operating results
Moneyweb`s core digital and broadcast platforms continue to perform robustly
and occupy positions of market leadership. According to Nielsen`s latest
Netrating estimates, the core audience on our flagship website
www.moneyweb.co.za has increased by 14% over the past year. This is pleasing
because our site has enjoyed good double digit growth since its genesis 13
years ago. However, in conjunction with ongoing increases in reach, we
continue to enjoy ever-increasing levels of user engagement across all our
sites, which adds greater scope and leverage to our business model and
related revenue streams.
Momentum at our international title www.mineweb.com also
continued to build during the half year with ongoing growth in
audience and advertising revenues.
Moneyweb`s daily radio programmes air during prime time on the
national broadcaster`s RSG, SAFM and Lotus FM radio stations,
and continue to enjoy leadership in the local market.
Prospects
During August 2010 the company sealed an important equity
partnership with Caxton Publishers & Printers Ltd, following
their subscription for 30.8m shares which resulted in
ownership of just under 35% of Moneyweb`s issued share
capital. We believe that this transaction offers meaningful
growth opportunities for the group.
In the second half of the year, we will work with Caxton to
roll out a national platform of community websites under the
single looklocal brand. We anticipate having at least 52
communities rolled out within 3 years. Our expectation is that
looklocal will extend our business model by creating a unique
platform that creates both local and national advertising
opportunities as well as future transactive revenue streams.
The first looklocal website went live in Benoni during October
2010 with roll out of other sites continuing.
Increased audience reach and greater community member
engagement, as well as ever growing trust in our brands, are
vital to allowing us to continue to grow our traditional
advertising revenues. We enter the second half of the year
with a good mix of confirmed bookings and opportunities. Our
relationship with Google remains important and we will expect
to see an increasing revenue contribution from this channel.
We expect Mineweb`s overall contribution to increase into the
second half of the year and we will be looking at launching
Moneyweb.com and our first Mineweb Apps to the international
market.
Various smaller initiatives are underway that 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 2011.
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 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, the 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 2010 and are in terms of IFRS.
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.
Changes to the Board
During the period under review, the following changes to the Board occurred:
Messrs TD Moolman and PG Greyling were appointed as non-executive directors,
effective 31 August 2010, Ms LM Hogg`s status changed from an executive to
that of a non-executive director, and the appointment of Dr A Smith as
executive chairman of the company was confirmed.
On Behalf of the Board
Dr Andrew Smith
Executive Chairman
2 November 2010
Corporate Information
Non executive directors: E A Jay; L Sipoyo; T Ncube; L M Hogg; T Moolman; P
Greyling
Executive directors: A Smith (Executive Chairman); A B Hogg; DG Wessels
Registered address: 20 The Piazza, Second Floor, Melrose Arch, 2196
Postal address: PO Box 8, Melrose Arch, 2076
Transfer secretaries: Computershare Investor Services (Pty) Limited
Auditors: BDO South Africa Incorporated
Designated Adviser: Vunani Corporate Finance
Date: 03/11/2010 07:05:02 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
