| Thu 22 Nov 2001, 0:00 | | Supersport Interim Report |
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Electronic Media Network & SuperSport International Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1997/004203/06)
Share code MNS ISIN ZAE000014304
(SuperSport)
INTERIM REPORT
Group unaudited results for the six-month period ended 30 September 2001
were as follows:
ABRIDGED INCOME STATEMENTS
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2001 2000 2001
(unaudited) (unaudited) (audited)
R'm R'm R'm
Revenues 372,6 333,3 704,1
Cost of sales and provision of services 330,1 300,4 642,0
Operating profits 42,5 32,9 62,1
Net finance income 3,8 5,1 13,5
Profit before taxation 46,3 38,0 75,6
Taxation 14,2 11,6 24,2
Profit attributable to shareholders 32,1 26,4 51,4
Dividend - - 11,3
Retained profit for the period 32,1 26,4 40,1
Basic, diluted and headline earnings
per share (cents) 11,3 9,3 18,2
Dividend per share (cents) - - 4,0
ABRIDGED BALANCE SHEETS
30 September 30 September 31 March
2001 2000 2001
(unaudited) (unaudited) (audited)
R'm R'm R'm
ASSETS
Non-current assets
Property, plant and equipment 27,4 17,9 17,8
Investments and loans 463,9 465,2 474,7
491,3 483,1 492,5
Cash and cash equivalents 23,9 26,1 39,1
Current assets 284,7 269,7 344,6
Total assets 799,9 778,9 876,2
EQUITY AND LIABILITIES
Capital and reserves 580,2 534,4 548,1
Non-current liabilities
Deferred tax 43,5 41,8 46,5
Current liabilities 176,2 202,7 281,6
799,9 778,9 876,2
ABRIDGED CASH FLOW STATEMENTS
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2001 2000 2001
(unaudited) (unaudited) (audited)
R'm R'm R'm
Operating profit 42,5 32,9 62,1
Depreciation and other non-cash items 0,4 0,4 0,8
Amortisation of goodwill 1,4 4,6 3,0
Working capital (33,5) (20,6) (26,2)
Cash generated from operating
activities 10,8 17,3 39,7
Finance income 3,8 5,1 13,5
Taxation paid (29,2) (9,8) (8,1)
Dividend paid - - (11,3)
Cash flow from operations (14,6) 12,6 33,8
Utilised for: fixed assets (10,0) (0,4) (0,7)
investment activities 9,4 (3,6) (11,5)
Net cash flow (15,2) 8,6 21,6
Cash and cash equivalents at
beginning of period 39,1 17,5 17,5
Cash and cash equivalents at
end of period 23,9 26,1 39,1
SUPPLEMENTARY INFORMATION
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2001 2000 2001
(unaudited) (unaudited) (audited)
R'm R'm R'm
Included in operating profit:
Depreciation for the year 0,4 0,4 0,8
Amortisation of goodwill 1,4 4,6 3,0
Net finance income:
Interest received 4,2 6,3 14,0
Interest paid 0,4 1,2 0,5
Rental under operating leases:
Office buildings 0,4 0,4 1,3
Investments and loans 463,9 465,2 474,7
Listed shares at cost 392,0 392,0 392,0
Loans to employee share incentive
schemes 8,4 10,0 8,4
Loans
Joint ventures 14,7 15,0 25,3
Associates 48,8 48,2 49,0
Capital expenditure for the year 10,0 0,4 0,8
Capital expenditure committed
or authorised 0,5 0,5 0,5
Sports events rights commitments 1 179,5 1 201,6 1 208,3
Number of and weighted average
number of ordinary shares
in issue (millions) 283,0 283,0 283,0
Net asset value per share (cents) 205,1 188,8 193,7
Rand/Nigerian naira exchange rate: R1= N10,4044 N14,9547 N15,31279
NOTES
These consolidated condensed interim financial statements for SuperSport
for the six months ended 30 September 2001 are prepared in accordance with
AC127 Interim Financial Reporting. The accounting policies used in the
preparation of the interim financial statements are consistent with those
used in the annual financial statements for the year ended 31 March 2001.
No condensed statement of changes in equity has been presented for the
period and its comparative periods, as there have been no capital
transactions during any of the periods. The only movement in equity relates
to net income for those periods.
SuperSport is involved in the acquisition, packaging, scheduling and
broadcasting of sports and sports-related programming and related
advertising activities, and has interests in various sport operations. The
company has no separable operations and, from a geographical standpoint,
although it broadcasts outside South Africa, its operations are conducted
from South Africa.
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.
EARNINGS
Revenues for the period amounted to R372,6 million compared with R333,3
million for the six months ended 30 September 2001, an increase of 12%.
Subscriptions, still the major source of revenue, also performed well. Taxed
profits amounted to R32,1 million, equivalent to earnings per share of 11,3
cents, an increase of 21% compared with the same period last year.
Rigorous cost control and a hedging strategy of dollar-based commitments
resulted in growth in earnings per share.
DIVIDEND
SuperSport's policy is to pay a single dividend at the end of each
financial year.
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 on 24 December 2001 (the
dematerialisation date). Trading for electronic settlement begins on 21
January 2002. Five business days later, i e on 28 January 2002, electronic
settlement of M-Net/SuperSport trades will take place for the first time.
DIRECTORATE CHANGES SINCE PUBLICATION OF THE ANNUAL REPORT
With effect from 21 August 2001 Mr P Edwards resigned as a director and
Mr P M Jenkins resigned as an alternate director of the company. In
addition, with effect from 22 August 2001 Messrs H R Enslin and P M Jenkins
were appointed as directors and Messrs A C G Molusi and S F Ward were
appointed as alternate directors of the company.
PROSPECTS AND DEVELOPMENTS
SuperSport aims to satisfy its viewers with coverage of top sporting
events, broadcasting more than 70 different sporting codes. Recently it
created a new pan-African sports channel, focusing heavily on soccer.
SuperSport commenced its broadcast of South African Premier Soccer League
and various Confederation of African Football games, and secured a multi-
year deal for English (FA) Premier League as well as Italian Serie A and
German Bundesliga soccer.
To maintain growth, SuperSport will continue to explore potential markets
in Africa, with Nigeria showing the best prospects outside South Africa.
With the increase of the DStv subscriber base throughout Africa, as well
as high interest levels in sport, SuperSport is well positioned to lead the
industry in sports broadcasting on the continent. However, SuperSport
remains vulnerable to a decline in the value of the rand, as many sports
rights are paid in US dollars.
On behalf of the board
Khulu Sibiya Heinrich Enslin
Chairman Chief executive
22 November 2001
Transfer secretaries
Mercantile Registrars Limited
11 Diagonal Street
Johannesburg 2001
(PO Box 1053,
Johannesburg 2000)
South Africa
Registered office
RANDBURG 2194
(PO Box 4950, Randburg 2125)
South Africa
Registrars/transfer secretaries in Nigeria
11 Grove Street City Securities Limited
5th Floor, Primrose Tower
17 Tinabu Street
LAGOS, Nigeria
(PO Box 9117, Lagos, Nigeria)
http://www.supersport.co.za
Directors K B Sibiya (chairman), J P Bekker, J S Craib, H R Enslin, P M
Jenkins, J R D Modise, S J Z Pacak, C J Sidego, J J Volkwyn
Alternate directors M J Ledwaba, A C G Molusi, S F Ward (British)
Company secretary G Kisbey-Green
