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Moneyweb Holdings Limited - Moneyweb delivers promised turnaround
MONEYWEB HOLDINGS LIMITED
(Registration No:1998/025067/06)
Share code: MNY ISIN: ZAE000025409
("Moneyweb" or "Company")
Moneyweb delivers promised turnaround
Internet-focused media company Moneyweb Holdings returned to profit during the
six months to end September. The company, founded in 1997 and listed in the
Media sector on the JSE, promised to return to the black after slumping to its
first ever loss in the year to end March 2005.
CEO Alec Hogg says: "Tough decisions taken 18 months ago hurt the company last
year, but the longer-term benefit should now be apparent to all. The
restructuring and streamlining of the business is delivering the results we had
hoped for. It has also positioned Moneyweb for a strong second half and further
growth in the years ahead."
Apart from its market-leading investment website Moneyweb.co.za, the company is
best known for introducing business radio to South Africa. It moved away from
Classic FM in June last year after rejecting an ultimatum from the station which
would have capped any further expansion in radio.
Moneyweb subsequently aligned itself with the SA Broadcasting Corporation. Its
partnership with RSG kicked off last September with Geldsake met Moneyweb,
introducing the country"s first nationally broadcast business show on FM. In May
this year, the partnership with the national broadcaster was expanded through
the launch of the Moneyweb Power Hour on Radio 2000.
The successful two and half year partnership with Caxton on The Citizen
newspaper was been elevated to a new level with the establishment of a full-
blown joint venture to produce the daily eight page Moneyweb Business insert.
The joint venture was launched on October 3 and Hogg says it has traded
profitably from the outset and enjoyed strong reader acceptance.
During the six months to end September, Moneyweb"s revenues rose 17% on the same
half year of 2004 and by 21% compared with the previous six months. Headline
earnings per share improved to 0,55c, from losses of 2,97c and 0,29c a share
respectively in the preceding half-year periods.
The turnaround is most apparent in operating cash flow where a R2,2m outflow
during the six months to the end of March was turned into a positive R670 000
for the half year under review.
Hogg explains that to more efficiently utilize the company"s cash reserves, a
further R877 000 was invested in buying back the company"s own shares. He says
the cash holding, now R1,7m, is appropriate for a business of this size.
No plans have yet been made for the R3m in cash will be received before the end
of the financial year as final settlement of Moneyweb"s sale of its 19,6% of
Classic FM. Almost two thirds of the company"s substantial online audience
resides outside of South Africa. Before the end of the calendar year, a
comprehensive plan to exploit the business opportunity this offers will be
presented for the board"s consideration.
Official statistics produced by the Online Publisher"s Association shows in
terms of audience reach Moneyweb Holdings is the country"s 10th biggest Internet
publishing house, a major achievement considering the tight niche, which it
serves.
For more information, please call Alec Hogg on (011) 327 1277
Rosebank, Johannesburg
14 November 2005
Sponsor
Grant Thornton Corporate Finance (Pty) Ltd
Date: 14/11/2005 12:48:04 PM Produced by the JSE SENS Department
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