| Wed 20 Jun 2001, 0:00 | | Supersport - Preliminary Report |
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SuperSport International Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1997/004203/06)
(SuperSport)
PRELIMINARY REPORT
ABRIDGED INCOME STATEMENTS
Year Year
ended ended
31 March 31 March
2001 2000
(audited) (audited)
R'm R'm
Revenue 704,1 622,1
Cost of sales and provision of services 642,0 572,2
Operating profit 62,1 49,9
Net finance income 13,5 7,9
Profit before taxation 75,6 57,8
Taxation 24,2 17,2
Profit attributable to shareholders 51,4 40,6
Dividend 11,3 8,5
Retained profit for the period 40,1 32,1
Headline earnings and earnings
per share (cents) 18,2 14,3
Dividend per share (cents) 4,0 3,0
ABRIDGED BALANCE SHEETS
31 March 31 March
2001 2000
(audited) (audited)
R'm R'm
ASSETS
Non-current assets
Property, plant and equipment 17,8 17,9
Investments and loans 474,7 466,2
492,5 484,1
Cash and cash equivalents 39,1 17,9
Current assets 344,6 305,5
Total assets 876,2 807,5
EQUITY AND LIABILITIES
Capital and reserves 548,1 508,0
Non-current liabilities
Deferred taxation 46,5 45,7
Current liabilities 281,6 253,8
876,2 807,5
ABRIDGED CASH FLOW STATEMENTS
Year Year
ended ended
31 March 31 March
2001 2000
(audited) (audited)
R'm R'm
Operating profit 62,1 49,9
Depreciation and other non-cash items 0,8 1,2
Working capital (26,2) (7,7)
Cash (utilised by)/generated from
operating activities 36,7 43,4
Finance income 13,5 7,9
Taxation paid (8,1) (6,1)
Dividend paid (11,3) (8,5)
Cash flow from operations 30,8 36,7
Utilised for: Fixed assets (0,7) (1,1)
Investment activities (8,5) (46,2)
Net cash flow 21,6 (10,6)
Cash and cash equivalents at
beginning of period 17,5 28,1
Cash and cash equivalents at
end of period 39,1 17,5
SUPPLEMENTARY INFORMATION
Year Year
ended ended
31 March 31 March
2001 2000
(audited) (audited)
R'm R'm
Included in operating profit:
Depreciation for the year 0,8 1,2
Amortisation of goodwill 3,0 -
Proceeds on disposal of fixed assets 0,1 -
Net finance income: 13,5 7,9
Interest received 14,0 11,2
Interest paid (0,5) (3,3)
Rental under operating leases:
Office buildings 1,3 0,9
Investments and loans 474,7 466,2
Listed shares at cost 392,0 392,0
Loans to employee share
incentive schemes 8,4 9,5
Joint ventures 25,3 15,6
Associates 49,0 49,1
Capital expenditure for the year 0,8 1,2
Capital expenditure committed
or authorised 0,5 0,3
Sports events rights commitments 1 208,3 1 030,4
Number of ordinary shares in issue 283,0 283,0
Net asset value per share (cents) 193,7 179,5
Rand/naira exchange rate at 31 March 2001: R1,00 = N15,31279. No condensed
statement of changes in equity has been presented as there have been no
capital transactions during the year. The only movement in equity relates to
retained profit for the year.
ACCOUNTING POLICIES
The financial statements are prepared on the historical cost basis and
comply with South African statements of generally accepted accounting
practice. The accounting policies, other than goodwill as noted below, are
consistent with those of the previous year.
Goodwill
Prior to 1 April 2000
Goodwill, consisting of the excess of the cost over the fair value of net
tangible assets of subsidiaries, joint ventures and associates at the date
of acquisition, is written off against income or, if available, non-
distributable reserves, unless legal authority is obtained to reduce share
premium by any excess. Where the net assets of a subsidiary or joint
venture at the date of acquisition exceed the cost of the shares acquired,
the excess is treated on consolidation as a non-distributable reserve. Such
goodwill or negative goodwill has not been adjusted for the change in
accounting policy noted below.
After 1 April 2000
Deficits or surpluses arising on the difference between the cost and the
fair value of net assets of subsidiaries, joint ventures and associates
acquired is accounted for as goodwill and amortised over a maximum period of
up to twenty years.
COMMENTS
INTRODUCTION
SuperSport shares trade as indivisible units with those of Electronic Media
Network Limited (M-Net) on the JSE Securities Exchange South Africa (JSE)
and the Nigerian Stock Exchange.
SuperSport aims to bring the best sports entertainment in the world to its
viewing public. Multichannel coverage of the 2000 Olympic Games and the
Nedbank Golf Challenge proved a great success. In addition, SuperSport
launched a channel for the highlights of the Super 12 rugby series, enabling
the viewer to see a continually updated package of the current games. All
major international events were covered extensively, including South
Africa's cricket tour to the West Indies, the Super 12 and Tri-Nations rugby
competitions, Wimbledon tennis, the FA Cup soccer final and all four major
international golf tournaments.
SuperSport Enterprises extended its brand name to related fields, including
merchandising and franchising, the packaging of sports travel tours, sports
competitions, exhibitions and shares in professional teams. The latter
includes SuperSport United (soccer), Northerns Titans and Natal Dolphins
(cricket), and Free State Cheetahs, Griqualand West and Natal Sharks
(rugby).
SuperSport holds a 5,49% interest in MIH Limited (MIHL), which is listed on
the Nasdaq National Market in New York and the Euronext Amsterdam Stock
Exchange.
EARNINGS
SuperSport's subscriber base continued to grow, comprising in excess of 1,24
million households spread across 49 countries in Africa and the adjacent
islands by March 2001.
Revenue for the year increased by 13% from R622,1 million to R704,1 million.
Taxed profits amounted to R51,4 million, equivalent to earnings per share of
18,2 cents.
The depreciation in the value of the rand relative to the US dollar impacts
SuperSport directly, as the majority of sports rights are denominated in US
dollars. During the period under review the rand declined by some 22%
against the US dollar. This, coupled with the ever-increasing cost of sports
events, necessitated a comparable average increase of 14% in subscription
fees.
Group results include the proportionately consolidated results of Oracle
Airtime Sales (Proprietary) Limited, Griqualand West Rugby Stadium
(Proprietary) Limited, KZN Cricket (Proprietary) Limited and Centurion Park
Investments (Proprietary) Limited.
DIVIDEND
SuperSport's policy is to pay a single dividend at the end of each financial
year. An ordinary dividend of 4,0 cents per share was declared to
shareholders registered as such on 23 March 2001 and paid on 30 March 2001.
STRATE
M-Net/SuperSport linked units are scheduled to be converted to Share
Transactions Totally Electronic (STRATE), an electronic settlement platform
for share transactions on the JSE in August 2001. The move to STRATE will
ensure M-Net/SuperSport's participation in a sophisticated settlement
process in line with international best practice. Shareholders will receive
further communication in this regard in due course.
PROSPECTS AND DEVELOPMENTS
In line with its intentions to enhance awareness of its activities
throughout Africa, SuperSport implemented several initiatives. Employing the
latest technology, SuperSport was able to broadcast a total of 1 700 hours
of the Olympic Games on up to eight channels at a time.
This was followed by the introduction of enhanced television and dedicated
channels for all six pairings in the Nedbank Golf Challenge at Sun City.
Enthusiasts were also offered instant, up-to-date statistics. The innovative
coverage, which also included the internet site SuperSport Zone, attracted
the attention of broadcasters worldwide.
Future developments include the expansion of the highlights channel into a
fully-fledged interactive channel and the reformatting of the SuperSport
International channel with local Premier Soccer League and Italian Series A,
English Premier League, FA Cup and other international soccer as the
backbone of the channel.
With the satisfactory growth of DStv throughout Africa, as well as high
levels of interest in sport, the board is confident that SuperSport is well
positioned to lead the industry in sports broadcasting on the continent.
People remain SuperSport's most valuable asset. Their ongoing development
and commitment continues to produce results.
On behalf of the board
K B Sibiya H R Enslin
Chairman Chief executive
20 June 2001
Directors K B Sibiya (chairman), J P Bekker, J S Craib, P Edwards (British),
J R D Modise, S J Z Pacak, C J Sidego, J D T Stofberg
Alternate directors P M Jenkins, M J Ledwaba, S F Ward (British)
Company secretary G Kisbey-Green
Transfer secretaries Registered office
Mercantile Registrars Limited 11 Grove Street
11 Diagonal Street RANDBURG 2194
Johannesburg 2001 (PO Box 4950, Randburg 2125)
(PO Box 1053, Johannesburg 2000) South Africa
South Africa
Registrars/transfer secretaries in Nigeria
City Securities Limited
5th Floor, Primrose Tower
17 Tinabu Street
LAGOS, Nigeria
(PO Box 9117, Lagos, Nigeria)
http://www.supersport.co.za
