SA media company Avusa posted a 60% fall in first-half profit and forecast a tough second half as recession in its home market hit advertising revenue and consumer spending.
Avusa said on Friday basic headline earnings per share for the six months to end September fell 60% to 39 cents, having forecast a fall of between 55% and 65%.
The company, which owns the Sunday Times and Exclusive Books bookshop, said advertising revenue fell 20%, eroding margins at its media business.
”We expect the softer advertising and discretionary retail environment to continue until at least the end of Avusa’s current financial year,” the company said.
Operating costs, revealed a marginal R3-million increase over last year’s costs, ”reflect the successful implementation of group-wide cost-
cutting initiatives,” the group said.
Avusa said its financial position remains ungeared and strong, with net cash of R200-million. – Reuters, I-Net Bridge