Tuesday, June 30, 2009

AVUSA expands revenue by 6%, 12% said to be 'gettable'

Traditional media is suffering as classifieds - a cash cow staple - moves online. Cinema is also in the doldrums in South Africa.

TheTimes.co.za: BDFM, comprising Business Day and the Financial Mail, incurred a loss of R9-million against last year’s R7-million profit, mainly due to development costs, whereas losses at The Times are narrowing.

Digital businesses now contribute 23% of earnings before interest and tax, calming sceptics who have accused the company of failing to enter that arena.

Khulekani Dlamini believes Avusa should realise margins of at least 12% or higher, given some of the brands in its stable.

SHOOT: AVUSA has to import its oil-based ink, and machinery spares - these costs are likely to remain high. Naspers achieved 29% revenue growth. Caxton releases its results in August.

Good news from the PwC report: from 2009 to 2010, compound annual growth in entertainment and media is expected to grow 8.7%.
clipped from www.thetimes.co.za

Heavy costs and fewer adverts are bad news, writes Adele Shevel.

The global winners in media over the next five years will be Internet advertising, video games, TV subscriptions and licence fees, and filmed entertainment.

The losers will be business-to-business publications, newspapers and consumer magazines.

The report predicts spending in the global entertainment and media market will be only 0.2% higher in 2011 than in 2008. Global advertising is forecast to decrease 12.1% this year followed by a further 2.7% decline next year, and is expected to be 13.3% lower in 2011 than in 2008.

These figures will be particularly alarming for print media. The three big listed print players in SA are Naspers, Avusa and Caxton. (The Independent News & Media Group South Africa is unlisted).

Avusa’s results — which CEO Prakash Desai called “credible” in light of the current economic conditions — came out on Thursday.

Avusa’s media unit posted a revenue gain of 6% in spite of the tough economy.
blog it

No comments: