Media group Avusa posted a 38% drop in full-year earnings on Thursday, slightly better than expected, and its shares surged after it hiked its dividend.
Avusa, which owns South Africa’s Sunday Times newspaper, has been hurt as slack consumer spending in Africa’s biggest economy dampened demand for print advertising.
The company said this month it will acquire units of privately held UHC Communications for $121-million in cash and shares as it looks to expand into retail advertising.
Avusa, which also owns magazines and the Exclusive Books book chain, said headline earnings per share fell to 149 cents in the year to end-March from 242 cents a year earlier.
Headline earnings per share, the main gauge of profit in South Africa, strip out certain one-time items. The company warned this month that full-year earnings were likely to drop by as much as 45%.
Avusa, which has a market value of about $267-million, also said it would lift its dividend by a quarter to 75 cents, sending its shares higher.
Revenue from continuing operations totalled R4,7-billion, down 4%. Advertising revenue dropped nearly 20%.
Shares of the company were up 6,8% at R20,67 as of 12.29pm GMT, compared with a flat all-share index.
Avusa’s shares are up 20% so far this year, outperforming the index, which is also flat on the year. – Reuters