The South Africa Broadcasting Corporation (SABC) has reported an operating loss of R32,5-million on a turnover of R2,45-billion during 2002/03.
The broadcaster tabled its latest annual report in Parliament on Tuesday.
This loss was contained despite stagnant licence fees, losses on foreign exchange cover and minimal state support.
In his chairperson’s statement, Vincent Maphai said the SABC is largely self-funded, relying heavily on advertising and sponsorship for the bulk of its operating revenue.
Most of the rest of its revenue comes from licences.
Nonetheless, the corporation has cash reserves of R280-million and ”remains in a financially sound position”.
Licence piracy has been reduced from 52% to 31%, and the plan is to reduce it further in the year ahead.
Maphai estimates that 6,7-million South African households have TV sets, with about 2,7-million fully paid up and two-million partially paid up.
According to the report, the SABC completed a comprehensive review of its technology requirements with the assistance of, among others, the British Broadcasting Corporation (BBC), and the board approved a further R759-million investment in digital broadcast technology over five years.
In addition a further investment of R122-million was committed to a revision of the SABC’s information technology.
”Once completed the investment will place the SABC at the forefront of digital broadcasting — a necessary requirement to meet it mandate.”
While revenue rose 10% to R2,45-billion, costs rose 11,1% to R2,536-million, leaving a loss of R84-million.
This was reduced by interest receipts of R51-million, leaving the net loss at R32-million.
”In common with much of corporate South Africa, the SABC sustained losses on rand hedge revaluations.”
Television contributed 62,8% of total revenue of R2,452-million, radio 20 percent, and audience services 14,7%.
Television revenue rose 9,6% to R1,542-million, while radio revenues rose by 25,6% to R479,6-million.
Audience services yielded an income of a further R361,1-million on a reduced cost basis, the report said. – Sapa