| Thu 19 Jun 2003, 13:17 | | Preliminary Report |
|
SuperSport -
SuperSport International Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1997/004203/06)
Share code MNS ISIN ZAE000014304
("SuperSport" or "the group")
PRELIMINARY REPORT
Group audited results for the year ended 31 March 2003 were as follows:
ABRIDGED INCOME STATEMENT
Year ended Year ended
31 March 31 March
2003 2002
R"m R"m
Revenue 961 839
Cost of sales and provision of services (715) (609)
Gross profit 246 230
Operating costs (159) (150)
Operating profit 87 80
Net finance income 21 13
Listed investment write-down (124) -
Equity accounted results of associates 2 -
(Loss)/profit before taxation (14) 93
Taxation (33) (31)
Net (loss)/profit for year (47) 62
(Loss)/earnings per share (cents)
- basic (18,4) 23,3
- diluted (18,4) 23,1
Headline earnings per share (cents)
- basic 34,8 22,6
- diluted 34,4 22,4
Dividend per share (cents) 6,0 5,0
Number of shares used to compute earnings and
headline earnings per share (millions):
- basic 253 266
- diluted 255 268
ABRIDGED BALANCE SHEET
31 March 31 March
2003 2002
R"m
ASSETS
Non-current assets
Intangible assets 12 16
Property, plant and equipment 21 19
Investments and loans 63 444
96 479
Current assets 494 421
Net cash 46 36
Total assets 636 936
EQUITY AND LIABILITIES
Capital and reserves 173 533
Non-current liabilities
Deferred taxation 82 65
Current liabilities 381 338
Total equity and liabilities 636 936
ABRIDGED CASH FLOW STATEMENT
Year ended Year ended
31 March 31 March
2003 2002
R"m R"m
Cash generated from operating activities 84 86
Net finance income 21 13
Taxation paid (27) (45)
Cash flow from operations 78 54
Utilised for: Property, plant and equipment (6) (2)
Intangibles acquired (3) (2)
Share buy-back, cancellation and treasury shares (8) (48)
Net cash distribution (35) -
Net dividend paid (15) (13)
Investments (1) 8
Net cash flow 10 (3)
Net cash at beginning of year 36 39
Net cash at end of year 46 36
STATEMENT OF CHANGES IN EQUITY
Share Total
capital and capital
share Retained and
premium earnings reserves
R"m R"m R"m
Balance at 1 April 2001 397 135 532
Net profit for year - 62 62
Dividend paid - (13) (13)
Acquisition of shares held as treasury
shares (3) - (3)
Share acquisition and cancellation (45) - (45)
Balance at 31 March 2002 349 184 533
Net loss for year - (47) (47)
Dividend paid - (15) (15)
Treasury shares sold (8) - (8)
Capital reduction - cash (35) - (35)
Capital reduction - shares (255) - (255)
Balance at 31 March 2003 51 122 173
SUPPLEMENTARY INFORMATION
Year ended Year ended
31 March 31 March
2003 2002
R"m R"m
Included in operating profit:
Depreciation for year 3 1
Provision for (losses)/profit against
associates and joint ventures 6 (6)
Amortisation of intangible assets 7 5
Net finance income: 21 13
Interest received 21 14
Interest paid - (1)
Rental under operating leases:
Office buildings and equipment 1 2
Headline earnings is reconciled as follows:
Net (loss)/profit for year (47) 62
Adjusted for:
Listed investment write-down 124 -
Amortisation of goodwill 4 4
Provision for losses against loans in associates and
joint ventures 6 (6)
Headline earnings 87 60
Investments and loans 63 444
Listed shares at cost 14 392
Loans
Joint ventures 5 6
Associates 44 46
Movement in investment activities (9) (40)
Share buy-back and cancellations and treasury shares - (47)
Share trust (8) (1)
Investments (1) 8
Capital expenditure for year 8 4
Capital expenditure committed or authorised - 1
Sports events rights commitments 1 312 1 227
Operating lease commitments 4 4
Number of ordinary shares in issue 253 253
Net asset value per share (cents) 68 199
Rand/naira exchange rate at 31 March 2003:
R1,00 = N16,161
Related-party transactions
The group entered into transactions and has balances with
a number of related parties.
The transactions with related parties are summarised
as follows:
Affiliates
Subscriber revenues received for year 764 674
Rental and transmission facilities 3 3
Broadcast services 125 116
The balances of advances, deposits, receivables and
payables between the group and related parties are:
Receivables 66 58
Affiliates 62 54
Joint venture 4 4
Payables
Affiliates 27 5
As part of our continuing foreign currency cover policy, SuperSport ceded
forward exchange contracts totalling US$19,5 million to MultiChoice Africa (Pty)
Limited at 31 March 2003 for no consideration. No loss was recorded on this
transaction. The average foreign exchange rate for the contracts ceded was
R10,59.
NOTES:
1. Accounting policies
These consolidated condensed preliminary financial statements are prepared on
the historical cost basis and comply with South African Statements of Generally
Accepted Accounting Practice.
The accounting policies used in the preparation of the preliminary financial
statements are consistent with those used in the annual financial statements for
the year ended 31 March 2002, except for the depreciation of buildings of
Centurion Park Investments (Proprietary) Limited.
Centurion Park Investments (Proprietary) Limited, which forms part of the
group results, has changed its accounting policy with regard to depreciation on
buildings to conform with new statements of Generally Accepted Accounting
Practice in South Africa. Buildings will now be depreciated over 50 years. The
comparative amounts have not been restated, as the impact on the prior year"s
figures is not material.
2. Segmental information
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 sports operations. SuperSport has no
separable operations and from a geographical standpoint, although it broadcasts
outside South Africa, its operations are conducted from South Africa.
3. Distribution to shareholders
The share distribution to shareholders of R255 million in the statement of
changes in equity is a non-cash transaction and as such does not reflect on the
face of the abridged cash flow statement.
The write-down of the listed investment of R124 million in the abridged
income statement is a non-cash transaction and as such does not reflect on the
face of abridged cash flow.
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, and will continue to do so for the foreseeable
future.
OVERVIEW
The year under review was an exciting one for sports enthusiasts, who rose to
the Right Said Fred hit song "Stand Up For The Champions". This became the
SuperSport signature tune and injected an enjoyable spirit into many events.
Regrettably not all local teams proved as heroic in battle.
The international sports scene had as its highlights the soccer and cricket
World Cup tournaments. SuperSport broadcast every match live to the entire
African continent and in addition also covered the English Premier League, Super
12 rugby, the Commonwealth Games, international boxing and Formula I racing. In
excess of 100 sports codes were broadcast live in a single year.
RESULTS
It proved a difficult period to manage costs due to the volatile rand-dollar
exchange rate and the spiralling costs of sports rights to major events.
SuperSport recorded a pleasing growth in the number of DStv subscribers outside
South Africa, as well as in advertising and sponsorship revenue.
Subscriptions remain the major source of revenue, with advertising and
sponsorships as secondary sources. Revenue for the year increased by 15% from
R839 million to R961 million. Rigorous cost cutting took place, enabling
SuperSport to show satisfactory financial results. Headline earnings per share
amounted to 34,8 cents, compared with 22,6 cents last year.
The company recorded an impairment charge of R124 million against its
investment in MIH Limited, reducing the carrying value of this investment of
R392 million at 31 March 2002 to R268 million immediately prior to distribution
to the shareholders, as described below.
Group results include the proportionately consolidated results of Oracle
Airtime Sales (Pty) Ltd, Griqualand West Rugby Stadium (Pty) Ltd, KwaZulu-Natal
Cricket (Pty) Ltd, Centurion Park Investments (Pty) Ltd and Western Province
Professional Cricket (Pty) Ltd.
DIVIDEND
SuperSport"s policy is to pay a single dividend at the end of each financial
year. An ordinary dividend of 6 cents per share (last year 5 cents) was declared
to shareholders registered as such on 28 March 2003 and paid on 31 March 2003.
CAPITAL REDUCTION
On 10 March 2003 some R37,5 million (13,955 cents per share) in cash was
distributed to shareholders by way of a reduction in the company"s share premium
account. Furthermore, following the recent reorganisation of Naspers Limited
(Naspers) in which the minority interests of MIH Holdings Limited and MIH
Limited were acquired in exchange for the issue of new Naspers shares,
SuperSport"s 5,5% investment in MIH Limited was converted to 11 386 277 Naspers
shares, representing a 3,9% investment in Naspers. This investment was not
considered by the directors of the company to be strategic for SuperSport and,
accordingly, these shares were distributed to shareholders as a reduction of
capital.
PROSPECTS AND DEVELOPMENTS
The introduction of the interactive SuperSport Zone channel added value to
SuperSport"s bouquet of services and created interest among subscribers. The
interactive channel reflected SuperSport"s commitment to stay at the forefront
in a rapidly changing environment, and to contribute to the development of sport
in Africa.
Exclusive rights to provide live coverage of English FA Premier League
soccer matches on SuperSport 3 attracted viewers" interest in African countries,
particularly Nigeria. Live coverage of Feyenoord"s matches in the Dutch Football
League and of some Portuguese League matches, with optional commentary in
Portuguese, as well as weekly highlights of Portuguese matches, were added to
the SuperSport 3 content. This focus extended to the inclusion of Nigerian
Soccer League reports, results, fixtures and league tables on the SuperSport
Zone, making it accessible to DStv viewers.
The rugby World Cup tournament to be held in Australia towards the end of
2003 is expected to have a positive influence on subscriber loyalty,
advertising, viewing figures and use of the SuperSport Zone"s services. The
ability to provide live coverage of every match and to add value by supplying
dual commentary and interactive television applications, as well as live scores,
reports and background statistics on the Zone, will position SuperSport to make
the most of events of this nature.
The legislated list of sports events that may not be televised exclusively on
pay television in South Africa could have far-reaching implications on both
broadcasters and sports bodies, as will international political and economic
developments.
If the company adopts new accounting standards relating to the accounting of
foreign currency transactions, it will lead to volatility in the future reported
earnings of SuperSport.
CORPORATE GOVERNANCE
SuperSport is committed to the principles advocated in the King Report on
Corporate Governance for South Africa 2002 (King II). The directors recognise
the need to conduct the business of the enterprise with integrity and in
accordance with generally accepted corporate practices. Accordingly, the board
has reviewed King II and the requisite improvements to SuperSport"s corporate
governance procedures and policies have either been made or are in the process
of being implemented, details of which will be included in the annual report.
An unmodified audit report by PricewaterhouseCoopers Inc. on the 2003 annual
financial statements and summarised financial statements contained herein is
available for inspection at the company"s registered office.
CHANGES IN DIRECTORATE
With effect from 18 June 2003, Mr P C Desai was appointed as a director and
Mr J R D Modise resigned as a director and was appointed as an alternate
director.
On behalf of the board
Khulu Sibiya Heinrich Enslin
Chairman Chief executive
19 June 2003
Transfer secretaries
Computershare Investor Services Limited
70 Marshall Street
Johannesburg 2001
(PO Box 1053, Johannesburg 2000)
South Africa
Registered office
11 Grove Street
RANDBURG 2194
(PO Box 4950, Randburg 2125)
South Africa
Registrars/transfer secretaries in Nigeria
City Securities Limited
5th Floor, Primrose Tower
17 Tinabu Street
LAGOS, Nigeria
(PO Box 9117,Lagos, Nigeria)
www.supersport.co.za
Directors: K B Sibiya (chairman), D D B Band, J P Bekker, J S Craib,
S Dakile-Hlongwane, P C Desai, H R Enslin (chief executive),
P M Jenkins, G P Marques, A C G Molusi, V B Mona, K D Moroka,
S J Z Pacak, C J Sidego, J J Volkwyn, T Vosloo
Alternate directors: M J Ledwaba, J R D Modise, S F Ward (British)
Company secretary: G Kisbey-Green
Date: 19/06/2003 12:24:58 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
