M-net/ Supersport - Trading Update And Cautionary Announcement
Release Date: 26/08/2003 13:58:00 Code(s): MNS
M-Net/ Supersport - Trading update and Cautionary Announcement
Electronic Media Network Limited SuperSport International Holdings
Limited
(Incorporated in the Republic of South (Incorporated in the Republic of South
Africa) Africa)
(Registration Number: 1985/002853/06) (Registration Number: 1997/004203/06)
Share code MNS Share code MNS
ISIN ZAE000014304 ISIN ZAE000014304
("M-Net") ("SuperSport")
TRADING UPDATE AND CAUTIONARY ANNOUNCEMENT
At the M-Net and SuperSport ("the companies") annual general meetings today, Mr
Khulu Sibiya, chair of the companies, provided a trading update. He noted that
in the 2003 M-Net and SuperSport annual reports, shareholders were advised that
one of the major risks faced by the companies was that of currency fluctuations.
The companies" reporting currency is the South African rand, which has a history
of volatility against the US dollar.
The companies earn substantial and increasing revenues in US dollars from
channel services provided to countries elsewhere in Africa. The recent strength
of the rand has resulted in these US dollar revenues translating into fewer
rands.
If maintained in the longer term, the stronger rand to the dollar relationship
will translate into reduced costs. However, this will take up to two years to
work its way through the income statement, since the companies have a policy to
cover forward dollar expenses for up to two years. In addition, the adoption of
the new accounting standard AC133, which relates to the accounting of foreign
currency transactions, will lead to volatility in the future reported earnings
of M-Net and SuperSport.
The net effect of the stronger rand is that earnings and headline earnings per
share for the six months ended September 2003 ("the interim results") may be
materially lower than last year"s corresponding results.
In all other respects trading results are within expectations.
In the light of the above shareholders are advised to exercise caution when
dealing in the companies" linked units until the publication of the interim
results, which is expected to take place in November 2003.
By order of the board
G Kisbey-Green
Company secretary of M-Net and SuperSport
Randburg
26 August 2003
Sponsors:
Sasfin Bank Limited
Wipcapital (Pty) Limited
Date: 26/08/2003 01:58:02 PM
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