South African media firm Johnnic Communications (Johncom) said on Friday its first-half attributable and headline earnings per share was expected to be 455% to 465% higher than the previous period.
Johncom, the country’s second-biggest media firm, said if its Caxton and CTP Publishers investment was excluded from earnings, its attributable and headline EPS would be between 30% to 40% higher.
The firm said its investment in Caxton carried less than 20% of the voting power in the publisher and was previously seen as an associate and equity accounted on the presumption of significant influence.
”The Johncom board of directors no longer considers that Johncom has significant influence over Caxton,” Johncom said in a statement.
The firm said the use of the equity method of accounting has been discontinued, with the Caxton investment now regarded as a financial asset at fair value through profit or loss.
”An exceptional profit of R1,590-billion and a capital gains tax charge of R144-million have been recognised in profit and loss,” Johncom said.
The firm said its interim results would be released on November 22. – Reuters