Moneyweb - Chief Executive Officer"s Report To The
Moneyweb - Chief Executive Officer`s Report To The Annual General Meeting Held
On 2 August 2005
MONEYWEB HOLDINGS LIMITED
(Registration No: 1998/025067/06)
Share code:MNY ISIN code:ZAE000025409
(`Moneyweb`)
Chief Executive Officer`s report to the Annual General Meeting held on 2 August
2005.
`It is my pleasure to report that the promised turnaround from last year`s
losses has been achieved. The company produced a small profit in the first
quarter (April to June) of the new financial year and is set to improve on this
during the second quarter. Management is confident that sufficient progress will
be posted in the balance of the financial year to meet the board`s desire to
return to the payment of dividends once more.
The return to basics approach has played the major role in securing the
turnaround. Revenues across all of the platforms have been growing strongly and
the securing of a number of long-term sponsorship contracts has helped create a
solid platform for the balance of the financial year.
Cost reductions implemented towards the end of the 2005 financial year have been
maintained. An exception, however, was the need to raise advertising expenditure
through the marketing of the new national FM radio platform for the flagship
Moneyweb Power Hour show.
Management`s focus during the balance of the current financial year will be to
deepen the relationship with the company`s two major media partners, the SA
Broadcasting Corporation and the Caxton Group; and to seek other joint venture
relationships where appropriate.
The balance of the shares in Classic FM have been sold to the BEE consortium
which secured the initial tranche. Payment, totalling R3-million in all, will be
tendered when ICASA approves the transaction. It is expected the funds will be
received during the current financial year. Moneyweb`s financial position
remains sound with sufficient working capital and no debt.
The company continues to investigate International expansion opportunities but
after considerable investment of time and resources, has decided it will not go
ahead with the proposed Nigerian project.`
Rosebank
2 August 2005
Sponsor Grant Thornton Corporate Finance (Pty) Ltd
Date: 02/08/2005 02:48:08 PM
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