/ 25 November 2004

Johnnic earnings surge 727 percent

Media and entertainment group Johnnic Communications on Wednesday reported an increase of 727% in headline earnings to R124-million for the six-month period to 30 September 2004.

Revenue for the period rose by 52% to R1953-million from R1284-million in 2003, while profit from continuing operations before exceptional items leapt by 800% from R17-million in 2003 to R153-million.

Headline earnings per share increased from 14 cents in the same period last year to 119 cents.

”The results include positive contributions from the acquisition of The Sowetan and Johncom’s additional interest in M-Net/SuperSport,” Group CEO Connie Molusi said in a statement.

He added that he was delighted at the group’s record performance.

”The results reflect the benefit of the restructuring, the focus by management on the core businesses, and a unified corporate structure over the past 15 months,” Molusi said.

With increased consumer spending in a low interest rate environment, Johncom was looking forward to good Christmas sales and consequently a robust second half performance to end in March 2005, Molusi said.

Group finance and operations director Prakash Desai said it was particularly encouraging that Johncom had performed so well in the first half of the year, as the second half, which includes the Christmas holiday season, was traditionally its stronger trading period.

Desai noted that revenue, margin and financing had all showed an improvement on the same period in the prior year.

Johncom announced in April it was increasing its stake in M-Net/SuperSport from 26,03% to 38,56% at a cost of R287-million, following the delisting of M-Net/SuperSport. This means that M-Net/SuperSport is now jointly controlled by

Johncom and Naspers.

During the half year under review, Johncom also acquired New Africa Publications, giving it control of The Sowetan and the remaining 50% of Sunday World.

The contribution from these acquisitions was not material in the reporting period.

A strong upturn in advertising spending benefited the group’s media titles, with all newspapers performing well, in particular the flagship Sunday Times and the group’s Eastern Cape newspapers.

Circulation and advertising sales of the relaunched Sowetan were growing strongly and management was confident this title would reclaim its position as one of the leading newspapers in South Africa, Johncom said. – Sapa