| Thu 31 Oct 2002, 9:42 | | Moneyweb - Results For The Six Months Ended 30 Sep |
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Moneyweb - Results For The Six Months Ended 30 September 2002
Moneyweb Holdings Limited
("Moneyweb")
(Registration No:1998/0256067/07)
ISIN code:ZA E000025409
Share code:MNY
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2002
* Turnaround from first quarter`s losses
* Global operations to make profit this year
* Classic FM moves strongly into earnings mode
* Better second half in prospect
* Strong balance sheet, healthy cash position
* New CEO to be appointed, founder to become chairman
Moneyweb Holdings Limited
Consolidated Income Statement
Unaudited Unaudited Audited
Six months Six months % Year
ended ended Change ended
30-Sep-02 30-Sep-01 31-Mar-02
R 000`s R 000`s R 000`s
Revenue 6,947 7,227 -4% 13,806
EBITDA 524 2,128 -75% 3,085
Depreciation & amortisation (685) (725) -6% (1,928)
Operating Income/(Loss) (161) 1,403 -111% 1,157
Interest received 212 355 -40% 597
Income from associates (net of
taxation) 352 101 249% 175
Loss on disposal of investment - - - (118)
Capital losses (124) - - -
Profit before tax 279 1,859 -85% 1,811
Taxation (145) (527) -72% (547)
Earnings before goodwill
amortisation 134 1,332 -90% 1,264
Reconciliation of profit after
tax to headline earnings:
Loss on disposal of investment - - - 118
Capital losses 124 - - -
Headline earnings 258 1,332 -81% 1,382
Headline EPS (cps) 0.3 1.6 -81% 1.6
Cash earnings per share (cps) 0.7 2.3 -70% 3.7
Dividend per share (cps) - - - 1.0
*Goodwill amortisation 7,540 6,597 14% 13,559
*Loss after goodwill
amortisation (7,406) (5,265) 41% (12,295)
*EPS after goodwill
amortisation (cps) (8.7) (6.2) 41% (14.5)
*This is a non-operating item. It relates to goodwill arising on
acquisitions,primarily at the listing of the company. The goodwill is written
off over 5 years.
Notes
The unaudited interim financial results have been prepared in accordance with
South African statements of Generally Accepted Accounting Practice. The
accounting policies used in the preparation of the unaudited interim financial
results are consistent with those used in the audited annual financial
statements for the year ended 31 March 2002.
No dividend was declared for the interim period.
All per share calculations have been based on 85 000 000 shares in issue.
Revenue for the electronic media segment amounted to R5,727,000
(2001:R5,644,000) and for the print media segment to R1,220,000
(2001:R1,583,000).
Moneyweb Holdings Limited
Consolidated Balance Sheet
Unaudited Unaudited Audited
30-Sep-02 30-Sep-01 31-Mar-02
R 000`s R 000`s R 000`s
ASSETS
Non-current assets
Furniture & equipment 717 1,164 807
Intangibles 1,127 1,917 1,258
Investments - 1,569 -
Investment in associate 526 101 175
Current assets
Trade and other receivables 4,051 3,496 2,646
Cash 5,200 6,341 6,761
9,251 9,837 9,407
Total assets 11,621 11,588 11,647
EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium 12,817 12,817 12,817
Goodwill (41,114) (54,828) (48,654)
(28,297) (42,011) (35,837)
Accumulated profit 36,238 51,631 44,494
Ordinary shareholders interest 7,941 9,620 8,657
Non-current liabilities
Deferred taxation 148 496 323
Current liabilities
Trade and other payables 2,534 2,444 1,658
Deferred revenue 655 489 316
Short term borrowing - 244 -
Receiver of revenue 343 1,295 693
3,532 4,472 2,667
Total equity and liabilities 11,621 14,588 11,647
Net asset value per share (cps) 9.3 11.3 10.2
Moneyweb Holdings Limited
Statement of changes in shareholders`
equity
Unaudited Unaudited Audited
Six months Six months Year
to to ended
30-Sep-02 30-Sep-01 31-Mar-02
R 000`s R 000`s R 000`s
Balance at beginning of the period 57,311 64,606 64,606
Net loss for the period (7,406) (5,158) (12,295)
Ordinary dividends (850) - -
Issue of ordinary shares - 5 5
Share premium arising - 4,995 4,995
Goodwill (41,114) (54,828) (48,654)
7,941 9,620 8,657
Moneyweb Holdings Limited
Consolidated Cash Flow Statement
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30-Sep-02 30-Sep-01 31-Mar-02
R 000`s R 000`s R 000`s
Cash flows from operating activities
Cash generated by operations 521 2,123 3,085
Movements in working capital (530) (940) (876)
Cash (utilised in)generated by
operating activities (9) 1,183 2,209
Investment income 212 355 597
Deferred revenue 339 43 (130)
Taxation paid (669) 47 (747)
Dividend paid (850) - -
Net cash flows (used in)/from operating
activities (977) 1,628 1,929
Cash flows used in investing activities
To expand operations
Acquisition of fixed assets and
intangible assets (588) (892) (1,079)
Acquisition of subsidiary and equity
investment - (2,987) (3,319)
Disposal of investment - - 882
Proceeds on disposal of fixed assets 4 - -
Net cash flows used in investing
activities (584) (3,879) (3,516)
Cash flows used in financing activities
Amount paid in respect of deferred
payment for subsidiary - (535) (779)
Net cashflows used in financing
activities - (535) (779)
Net movement in cash and cash
equivalents for the period (1,561) (2,786) (2,366)
Cash and cash equivalents at
beginning of period 6,761 9,127 9,127
Cash and cash equivalents at
end of period 5,200 6,341 6,761
Financial results
The modest profit reported at the EBITDA and pre-tax levels, while sharply lower
than a year ago, masks a six month period of significant contrasts. April to
June was the most difficult quarter Moneyweb has experienced since its listing
three years ago. Improved advertising that had been noted during February and
March, evaporated during the next three months. This setback was exacerbated by
a burglary suffered in June which targeted servers and other computer equipment.
The company self-insures and the book value of the stolen equipment has been
written off in this reporting period. Costs of the launch of a Broadcast News
service were also a drag on profitability. All of this resulted in the company
recording its first ever operating loss during the first quarter of the current
financial year.
Management action on curtailing variable costs, a much improved advertising
environment and good progress by the Moneyweb Digest newspaper, which was
launched in April, helped the company to a far better second quarter (July to
Sept). As a result, a profit was achieved in the half year to end September. To
illustrate the swing between quarters, in the first three months of this
financial year Moneyweb Holdings posted a loss of R220 000 at the EBITDA level.
This improved to a profit of R744 000 in the second quarter. The impact was even
greater at the pre-tax level where a loss of R506 000 from April to June was
turned into R785 000 profit in the September quarter.
Classic FM
A highlight of this reporting period is continued progress at 19.6% associate
company Classic FM. After four years of heavy losses, Moneyweb`s intervention
helped the radio station to move into the black last year. These modest profits
were transformed into earnings of R1,8m for the six months to September, with
Moneyweb`s share at R352 000. The station posted a new record for monthly
revenue in October when Classic FM`s advertising income exceeded R2m for the
first time - four times the monthly average at the time of Moneyweb`s investment
two and a half years ago.
Prospects
After three years of significant investment, the company`s world leading mining
website Mineweb.com is on target to make its first contribution to profit in
this financial year. Management is confident that for the company as a whole,
earnings per share in the second half of the financial year will exceed those of
the first half at both a cash (0.7c) and headline earnings (0.3c) level. The
balance sheet remains sound with cash holdings exceeding R5m. The company is
actively pursuing opportunities in the broadcast media field.
New CEO
The board is pleased to announce that as from 1 January 2003, Edwin Jay (43)
will be appointed Moneyweb`s Chief Executive Officer. Jay, who joined the board
of Moneyweb a year ago as a non-executive director, is currently managing
partner of prominent Johannesburg-based legal firm Jay Inc which he founded in
1994. Incumbent CEO and Moneyweb founder Alec Hogg (43) is to become chairman of
the company, retaining day-to-day responsibility for editorial.
AB Hogg TJ Wood
Chief Executive Director
31 October 2002
Registered office
Ground Floor, Sherwood House, Greenacres Office Park, Victory Road,Victory Park,
2195
Sponsor
LPC Manhattan Sponsors (Proprietary)Limited, Fourth Floor, South Office Tower,
Hyde Park Shopping Centre, Hyde Park, 2196
Transfer secretaries
Computershare Investor Services Limited, 70 Marshall Street, Johannesburg, 2001
Directors
AB Hogg, TJ Wood, LM Hogg, DA McKay, DF Da Silva*, EA Jay* *non exec
Date: 31/10/2002 08:52:00 AM Produced by the JSE SENS Department
