The South African Broadcasting Corporation (SABC) on Tuesday reported an 18% increase in revenue for the year ended March 31 2005, to R3,314-billion from R2,711-billion a year ago.
Profit after tax rose to R240,3-million from R1,7-million, according to the SABC’s chief financial officer, Robin Nicholson.
Newly appointed CEO Dali Mpofu ascribed the huge jump in profits to the broadcaster’s ability to manage its assets, an improvement in television licence collection as well as cost containment.
Advertising turned over R2,198-billion, up from last year’s R1,776-billion, while programme sponsorship rose by R28,1-million to R200-million.
“The fact that we were able to collect in excess of R100-million in licence fees is a good sign and it’s quite encouraging, because on the flip side it shows that our viewers are happy with what they see on TV. It’s something you could use to measure customer satisfaction,” Mpofu continued.
He conceded that the corporation is still confronted by challenges in relation to transformation, adding that he hopes the SABC will soon address these. Some areas in the country are still without proper signal coverage, he added.
Mpofu noted that during the period under review, the corporation invested more than R1-billion in a bid to ensure growth in the local production industry, increasing the amount of airtime in which indigenous languages were broadcast, and cited the yet-to-be launched SABC4 and SABC5.
Nicholson noted that the national broadcaster lost R900 000 due to foreign-exchange fluctuations.
He said TV licence fees’ contribution towards funding the corporation remained unchanged at 15%, while the commercial side — with R2,599-billion — remained the major contributor at 78%. Funding from the government was estimated at R49-million, or 2% down from 5% last year.
Representing the sole shareholder, the government, Deputy Minister of Communications Roy Padayachee congratulated the corporation for a turnaround but called on it to be more proactive in helping with the national agenda, which encompasses nation-building and promoting South Africa’s image. This will in turn yield tourism and investment.
Going ahead, Mpofu said, the SABC will continue to gear itself ahead of the 2010 Soccer World Cup. In addition, a technology plan is being deployed with the state contributing R400-million, pursuant to a fully digital environment to ensure improved coverage.
Nicholson said the pension-fund surplus is now R1,3-billion, of which the SABC will receive R350-million. The pension-fund holiday is R50-million, but he noted that this is likely to be resolved by 2007. — I-Net Bridge