| Mon 3 Nov 2003, 14:31 | | Unaudited Results For The Six Months Ended 30 |
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Moneyweb Holdings Limited -
MONEYWEB HOLDINGS LIMITED
("Moneyweb" or "the Company")
(Registration No:1998/025067/06)
ISIN code:ZAE000025409
Share code:MNY
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2003 AND RENEWAL OF
CAUTIONARY ANNOUNCEMENT
* HEPS jumps 400%, cash earnings rise 129%
* Solid growth in core on-line, radio operations
* e.tv, The Citizen partnerships off to excellent start
* Classic FM positioned to declare maiden dividend
* Global partner identified for Mineweb.com
* 7% of equity repurchased on open market
Moneyweb Holdings Limited
Consolidated Income Statement
Unaudited Unaudited Audited
Six months Six months % Year
ended ended Change ended
30-Sep-03 30-Sep-02 31-Mar-03
R"000 R"000 R"000
Revenue 8,639 6,947 24% 15,500
EBITDA 1,506 524 187% 1,941
Depreciation & amortisation (464) (685) -32% (1,413)
Operating Income/(Loss) 1,042 (161) 747% 528
Net investment income 280 212 32% 526
Income from associates (net of
taxation) 324 352 -8% 1,033
Exceptional items - (124) - (126)
Profit before tax 1,646 279 490% 1,961
Taxation (457) (145) 215% (461)
Earnings before goodwill
amortisation 1,189 134 787% 1,500
Reconciliation of profit after
tax to headline earnings:
Other items of a capital nature - 124 - 126
Headline earnings 1,189 258 361% 1,626
Headline EPS (cps) 1.5 0.3 400% 1.9
Cash earnings per share (cps) 1.6 0.7 129% 2.4
Dividend per share (cps) - 1.0 - 1.0
*Goodwill amortisation 7,561 7,540 0% 15,081
*Loss after goodwill
amortisation (6,372) (7,406) -14% (13,581)
*EPS after goodwill
amortisation (cps) (7.8) (8.7) -10% (16.0)
*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 2003.
No dividend was declared for the interim period.
All per share calculations pertaining to the income statement have been based on
a weighted average number of 81 885 795 (2002: 85 000 000) shares in issue.
Revenue for the electronic media segment amounted to R6 903 774 (2002:R5 727
000) and for the print media segment to R1,735 105 (2002:R1,220,000).
Moneyweb Holdings Limited
Consolidated Balance Sheet
Unaudited Unaudited Audited
30-Sep-03 30-Sep-02 31-Mar-03
R"000 R"000 R"000
ASSETS
Non-current assets
Furniture & equipment 912 717 1,001
Intangible assets 687 1,127 929
Investment in associates 1,533 526 1,208
Other investment 10 - 10
Deferred taxation 31 - -
3,173 2,370 3,148
Current assets
Trade and other receivables 4,121 4,051 3,098
Income tax prepaid - - 49
Cash and cash equivalents 4,473 5,200 6,523
8,594 9,251 9,670
Total assets 11,767 11,621 12,818
EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium 10,827 12,817 12,817
Accumulated profit 23,691 36,238 30,063
Goodwill (26,219) (41,114) (33,573)
Ordinary shareholders interest 8,299 7,941 9,307
Non-current liabilities
Deferred taxation - 148 168
Current liabilities
Trade and other payables 2,677 2,534 2,473
Deferred revenue 367 655 595
Income tax payable 422 343 273
Shareholders for dividend 2 - 2
3,468 3,532 3,343
Total equity and liabilities 11,767 11,621 12,818
Net asset value per share (cps) 10.5 9.3 10.9
Based on a closing number of
78,979,924 (2002: 85,000,000)shares
in issue
Moneyweb Holdings Limited
Consolidated statement of changes
in shareholders" equity
Unaudited Unaudited Audited
Six months Six months Year
to to ended
30-Sep-03 30-Sep-02 31-Mar-03
R"000 R"000 R"000
Balance at beginning of the period 42,880 57,311 57,311
Net loss for the period (6,372) (7,406) (13,581)
Ordinary dividends - (850) (850)
Share repurchase in terms of
general authority (1,990) - -
Goodwill (26,219) (41,114) (33,573)
8,299 7,941 9,307
Moneyweb Holdings Limited
Consolidated cash flow statement
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30-Sep-03 30-Sep-02 31-Mar-03
R"000 R"000 R"000
Cash flows from operating activities
Cash generated by operations 1,506 521 2,217
Movements in working capital (1,047) (191) 363
Cash generated by
operating activities 459 330 2,580
Investment income 280 212 526
Normal taxation paid (458) (669) (979)
STC paid - - (106)
Dividend paid - (850) (848)
Net cash flows (used in)/from operating
activities 281 (977) 1,173
Cash flows used in investing activities
Acquisition of fixed assets and
intangible assets (134) (588) (1,440)
Acquisition of equity investment (207) - -
Acquisition of treasury shares (1,990) - -
Proceeds on disposal of fixed assets - 4 29
Net cash flows used in investing
activities (2,331) (584) (1,411)
Net movement in cash and cash
equivalents for the period (2,050) (1,561) (238)
Cash and cash equivalents at
beginning of period 6,523 6,761 6,761
Cash and cash equivalents at
end of period 4,473 5,200 6,523
Financial results
The 490% improvement in pretax profit and 400% jump in headline earnings per
share reflect a welcome rebound after the post-9/11 trauma experienced during
the corresponding reporting period a year ago. Notwithstanding this fact, the
earnings result is especially gratifying as it was achieved during a period when
new products required additional investment reflected in the significant
increase in working capital.
During the period, the company invested R1,99m through the purchase of 6,02
million Moneyweb shares at an average price of 33c. As a direct result, cash
holdings fell from R6,52m to R4,47m. Given the cash generative position of the
company, the level of these reserves is considered comfortable.
Electronic Media
The core Internet publishing operations did well. Moneyweb.co.za continues to
derive benefits from its dominance of the online investment information sector,
with its revenues enjoying a healthy improvement in the half year. Revenues from
Mineweb.com were steady despite the negative impact of the stronger Rand on its
traditional advertising base of South African mining groups.
The Classic Business radio show, which also holds a dominant position in its
market, maintained revenues off an already high base. The partnership with
independent television broadcaster e.tv is off to an excellent start with high
acceptance in the marketplace and satisfactory revenues.
Print media
One of the highlights of the half year was sustained growth in revenues
generated by the partnership with The Citizen newspaper for which Moneyweb
produces the Business section in return for a share of advertising. The
company"s revenues are rising strongly and are already at a level that makes the
partnership viable. The Moneyweb Digest and newsletter divisions traded as
expected.
Associates
Classic FM, of which the company owns 19,6%, continues to trade strongly. After
repaying the last of its initial debt, the radio station is cash flush and
positioned to declare a maiden dividend this year. Stockbroking start-up Vestact
(25% owned by Moneyweb) traded ahead of budget. It is on target to reach break-
even ahead of schedule, possibly in the second half of the current year.
Further Cautionary Announcement
Further to the renewal of cautionary dated 29 October 2003, Moneyweb wishes to
advise shareholders that it is in discussions to establish a joint venture with
a global partner in respect of Mineweb.com. Negotiations between the parties
are expected to be concluded shortly and will be subject, inter alia, to
exchange control approval from the SA Reserve Bank. Shareholders should
accordingly continue to exercise caution when dealing in the Company"s
securities on the JSE Securities Exchange South Africa until a further
announcement is made in this regard.
Prospects
The improved trend which became evident during the second half of the last
financial year was sustained during the six months to end September. The company
is well set to achieve real earnings growth in the year to end March 2004.
AB Hogg EA Jay
Chairman Chief executive
Rosebank
3 November 2003
Sponsor
LPC Manhattan Sponsors
Date: 03/11/2003 02:07:15 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
