| Thu 10 Nov 2011, 9:29 | | MNY - Moneyweb Holdings Limited - Unaudited condensed financial results for |
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MNY
MNY
MNY - Moneyweb Holdings Limited - Unaudited condensed financial results for
the six months ended 30 September 2011
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
2011
Condensed Group Statement of Comprehensive Income
Notes Unaudited Unaudited Audited
6 months 6 months 12 months
30-Sep-11 30-Sep-10 31-Mar-11
R`000 R`000 R`000
Revenue 15 987 15 528 35 367
(Loss)/ profit before investment income,
fair value adjustments, depreciation,
amortization, impairments and exchange losses (2 858) 2 436 (2 159)
Depreciation and amortisation (719) (627) (1 212)
Investment income 686 268 840
Finance costs - - (139)
Fair value adjustment of investment 69 2 1
and financial instruments
Impairment of financial assets - - (116)
Foreign exchange (loss) gain (81) - (112)
Loss on write-off of intangible asset - - (843)
Net(loss)/ profit before taxation (2,903) 2 079 (3 740)
Taxation - (662) (287)
Profit from joint ventures 211 129 271
Net (loss)/ profit for the period (2 692) 1 546 (3,756)
Other comprehensive income
Exchange differences on translating 166 (47) (32)
foreign operations
Total comprehensive (loss)/ income (2 526) 1 499 (3 788)
for the period
Reconciliation of headline (loss) /
earnings
Net(loss) / profit for the period (2 692) 1 546 (3 756)
Loss on write-off of intangible asset - - 843
Headline (loss) / earnings (2 692) 1 546 (2 913)
(Loss) / earnings per share (cents) (2.52) 1.84 (3.94)
Headline (loss)/earnings per share (cents) (2.52) 1.84 (3.06)
Number of shares in issue (000`s)
- issued closing (net of treasury) 106 575 106 575 106 575
- weighted average 106 575 84 190 95 352
Condensed Group Statement of Financial Position
Unaudited Unaudited Audited
30-Sep-11 30-Sep-10 31-Mar-11
Assets R`000 R`000 R`000
Non-current assets
Tangible assets 1 617 2 440 1 988
Intangible assets 2 543 3 696 2 808
Investment in joint ventures 1 045 1 054 1 334
Other investment 15 16 15
Income tax paid in advance - 100 -
Deferred taxation 136 147 136
5 356 7 453 6 281
Current assets
Trade and other receivables 12 479 8 483 8 838
Other financial assets 15 614 - 15 015
Cash and cash equivalents 8 268 23 039 9 209
Income tax paid in advance 1 216 - 823
37 577 31 522 33 885
Total assets 42 933 38 975 40 166
Equity and Liabilities
Capital and reserves
Share capital and premium 32 732 32 699 32 732
Foreign currency translation reserve (745) (926) (911)
Accumulated profit (3 133) 4 861 (441)
Ordinary shareholders` interest 28 854 36 634 31 380
Non-current liabilities
Current liabilities
Trade and other payables 6 006 1 956 3 748
Deferred revenue 8 073 385 5 038
14 079 2 341 8 786
Total equity and liabilities 42 933 38 975 40 166
Net asset value per share (cents) 27.1 34.4 29.4
Net tangible asset value per share 24.7 30.9 26.8
(cents)
Condensed Group Statement of Changes in
Equity
Share Share Foreign Accumulate Total
capita premium currency d profit
l translatio
n reserve
R`000 R`000 R`000 R`000 R`000
Balance at 1 April 2010 76 11 712 (879) 4 073 14 982
Total comprehensive income - - (32) (3 756) (3
for the year ended 31 March 788)
2011
Ordinary dividend paid - - - (758) (758)
Ordinary shares issued 31 20 913 - - 20 944
Balance at 1 April 2011 107 32 625 (911) (441) 31 380
Total comprehensive income - - 166 (2 692) (2
for the six months ended 30 526)
September 2011
Balance at 30 September 2011 107 32 625 (745) (3 133) 28 854
Condensed Group Statement of Cash
Flow
Unaudited Unaudite Audited
d
6 months 6 months 12 months
30-Sep-11 30-Sep- 31-Mar-11
10
R`000 R`000 R`000
Cash flows from operating activities
Cash generated /(utilised) by 1 473 (970) (1 241)
operations
Movements in working capital (1 384) (227) 1 211
Cash utilised by operating activities (911) (1 197) (30)
Investment income 686 270 842
Finance costs - - (139)
Taxation paid (393) (1 713) (2 053)
Dividend paid - (758) (758)
Net cash outflows from operating (618) (3 398) (2 138)
activities
Cash flows from investing activities
Acquisition of intangible assets - (75) -
Acquisition of tangible assets (82) (390) (554)
Investment in other financial assets (530) (15 015)
Decrease in investment in joint 289 - 37
ventures
Repayment of loan receivable - 56 -
Net cash outflows from investing (323) (409) (15 532)
activities
Cash flows from financing activities
Ordinary shares issued - 20 911 20,944
Net cash inflows from financing - 20 911 20 944
activities
Net movement in cash and cash (941) 17 104 3 274
equivalents for the period
Cash and cash equivalents at beginning 9 209 5 935 5 935
Cash and cash equivalents at end of 8 268 23 039 9 209
period
Notes to the Unaudited Condensed
Financial Results for the six months
ended 30 September 2011
1. Cash generated by operations
(Loss)/profit before investment income,
fair value adjustments, depreciation, (2 858) 2 436 (2 159)
amortization, impairments and exchange
losses
Adjustments:
Profit from joint ventures 211 129 271
Impairment of financial asset - - (116)
Foreign exchange (loss)gain (81) - (112)
Increase (decrease) in deferred 3 035 (3 488) 907
revenue
Decrease (increase) in foreign 166 (47) (32)
currency translation reserve
473 (970) 1 241
Financial results
During the half year to end September, revenue increased by 3% on a
comparative basis from R15.5m to R15.9m. Although trading for the first 4
months of the period under review was as expected, an unexpected pull back
in advertising revenues from our South African digital and broadcast
platforms arose in August and September, which meant that we missed our
planned revenue targets. Moreover, looklocal revenues also decreased due to
longer timelines in completing key new features to the site, which caused us
to delay our roll-out programme. Only 2 additional sites (instead of 13)
were rolled out in the period under review.
These revenue shortfalls coupled with the continued and significant
expenditure plan embarked upon last year to extend platforms and roll out
looklocal resulted in a loss after tax of R2,692m for the period and a loss
per share of 2.52 cents. We had anticipated in our plan for the year that we
would make a loss during this period, which coincides with the the roll-out
phase of looklocal.
Cash resources and highly liquid investments at period end was R23.2m and
the group remains debt free. 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 Google Analytics, our core audience as measured by unique home
page visitors on www.moneyweb.co.za has increased by 23% year-on-year. As
noted in previous years, this is pleasing because our site continues to
enjoy good double-digit growth 14 years after inception. In conjunction with
on-going increases in reach, we also continue to enjoy ever-increasing
levels of user engagement. A larger audience and greater user engagement
continue to translate into on-going and meaningful increases in Google
generated revenues, which increased 15% on a comparative basis.
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.
Mineweb continues to operate profitably despite the exploration/junior miner
sectors showing signs of slow down as the availability of funding to market
participants has once again come under pressure due to the latest chapter of
instability in the global financial markets. We have started pushing into new
lines of revenue generation that we were previously prevented from due to our
joint venture arrangement with Infomine.
We continue to work very closely with Caxton in the build, roll out and
management of www.looklocal.co.za. This hyper-local site has seen very pleasing
growth in both audience size and user interaction, ahead of our plan. There are
currently 31 sites of the original planned 52 sites live. In the last 6 months
dedicated property, motoring and jobs sections have been launched, as well as
classifieds, a mobi-site and the launch of daily national retailer deals. We
are seeing encouraging month-on-month growth in the level of local and national
advertising campaigns being run on the platform. We expect this trend to
continue as additional sites go live and the market uptake by advertisers
gathers momentum. Moneyweb shares in a percentage of related advertising
revenues.
Prospects
Despite not meeting planned revenue targets for the first six months, we do
expect to see Moneyweb`s momentum turn into additional revenue. Moneyweb`s
revenue model currently has a strong second half-year weighting with the
majority of looklocal revenues being earned in the second half of our financial
year.
We will continue to spend significantly in the continuing build and roll out of
looklocal throughout the remainder of our financial year. We believe we have
made good progress with Caxton to establish the site as a premier South African
web destination.
There are indications that the advertising revenue declines experienced in the
last two months of the period under review, which also continued into October,
are showing signs of recovery. However it is too soon to be definitive and we
monitor the situation closely.
We have also now submitted our first two Moneyweb Apps to the Apple iTunes and
Android Market stores for release. We believe these will represent a
significant extension of our present digital platforms and allow us to further
build and develop our audience. We currently have two additional significant
App projects in development, which are expected to be released in the first 6
months of 2012.
Increased audience reach and greater community member engagement, as well as
ever growing trust in our brands, remain vital to allowing us to continue to
grow our traditional advertising revenues. We have further realigned our
editorial content and programming to maintain this momentum.
We expect Mineweb`s contribution to increase in the second half of the year.
Dividend 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 interim condensed financial statements have been prepared in
accordance with the measurement and recognition requirements of
International
Financial Reporting Standards (IFRS), the principles of IAS 34: Interim
Financial Reporting, the AC500 standards as issued by the Accounting
Practices Board or its successor for Interim Reporting and the JSE
Listings Requirements and South African Companies Act.
The accounting policies and methods of computation adopted in the interim
financial statements are consistent with those applied in the annual
financial statements for the year ended 31 March 2011 and are in terms of
IFRS.
The interim consolidated financial statements have not been reviewed or
reported by the company`s auditors.
Basis of measurement
The interim 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 interim 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
Non-executive directors EA Jay and LM Hogg have not made themselves
available for re-election at the annual general meeting. T Ncube has
stepped down as chairman of the audit committee effective from 9 November
2011, but remains as non-executive director and member of the audit
committee. W van der Merwe was appointed as non-executive director on 9
November 2011 and will also assume the roles of chairman of the audit
committee and lead independent director.
On Behalf of the Board
Dr Andrew Smith
Executive Chairman
10 November 2011
Corporate Information
Non executive directors: LW Sipoyo; T Ncube; TD Moolman; PG Greyling; W van
der Merwe
Executive directors: A Smith (Executive Chairman); AB Hogg; JM Donnelly
Registered address: 20 The Piazza, Second Floor, Melrose Arch, 2196
Postal address: PO Box 8, Melrose Arch, 2076
Company secretary: JM Donnelly
Telephone: (011) 344 8600
Facsimile: (011) 344 8601
Transfer secretaries: Computershare Investor Services (Pty) Limited
Auditors: BDO South Africa Incorporated
Designated Adviser: Vunani Corporate Finance
Date: 10/11/2011 09:29:00 Produced by the JSE SENS Department.
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