African media group Primedia on Tuesday reported a 34,4% increase in headline earnings per share for the six months ended in December 2004 to 43 cents from 32 cents a year earlier.
The group increased its interim distribution per share by 40,1% to 22 cents from 15,7 cents a year ago.
Revenue was up 8,8% to R1,004-billion, while net profit for the year was 15,6% higher at R99,1-million.
“The Primedia group has delivered another good set of results and continues to grow shareholder value through its primary strategies, which have translated into improved profits and cash flow and positioned the group for further success,” the company said in a statement.
During the period under review the media group embarked on a strategic review which saw organic growth, innovation and geographic expansion into Africa.
A 92,2% economic interest was acquired in KFM radio station for R188,3-million in October, and prior to that, a cash payment of R100-million was made for an additional 30,5% economic stake in 94.7 Highveld Stereo.
Through Primedia Unlimited, four transactions were recently concluded and these extend the company’s advertising reach into shopping malls, parking arcades, construction sites and landmark buildings.
These transactions will cost the group approximately R31-million, of which R7,7-million was paid during the period under review.
The group’s strategy to grow black consumer patronage of cinema has been eclipsed by Ster-Kinekor Theatres’ revised strategy. Through the opening of eight home entertainment stores in townships such as Soweto — of which five were opened in 2004, Ster-Kinekor is refining its product offering and gaining knowledge to accelerate its rollout of home entertainment products (DVD and
video) to township areas.
Overseas, an R8,6-million gain arose from the write-up in the carrying value of Ster Century Middle East pursuant to the imminent disposal of this entity.
Turning to its advertising division, the group said this area recorded a 24,8% growth in revenue to R467,4-million. Excellent results were posted by the broadcasting and internet, cinema and print as well as sports divisions.
Filmed entertainment division’s revenue grew 3,2% to R506,2-million.
Looking ahead, Primedia said it “should continue to perform well in the second last six months.” – I-Net Bridge