eMEDIA INVESTMENTS PROPRIETARY LIMITED (eMEDIA INVESTMENTS)

Remgro has an effective interest of 32.3% in eMedia Investments that has a range of media interests, which include South Africa’s only private free-to-air television channel, e.tv, its sister news service, eNews Channel Africa (eNCA), free-to-air satellite platform Platco Digital, Gauteng-based radio station, Yfm, and various studio facilities and production businesses.

eMedia Investments has a March year-end and therefore its results for the year to 31 March 2017 have been included in Remgro’s results for the period under review. eMedia Investments’ contribution to Remgro’s headline earnings for the period under review amounted to R49 million (2016: R28 million).

eMedia Investments reported a profit from continuing operations of R161.5 million (2016: R128.5 million) for the year under review.

The year ended 31 March 2017 has seen e.tv’s market share remain constant, but it improved in middle to upper-income households. This improvement in a key segment increased e.tv’s revenue by R74 million (6%) year on year. A shift to include “high-end” international series and movies and recent deals concluded with Warner, Disney, Sony and CBS has assisted in clawing back and maintaining the market share that had been lost previously. This, however, has increased programming costs by 8%. Other costs were well maintained and e.tv has shown a good recovery from its previous position.

eSat.tv (eNCA) continues to perform well and continues to be the most watched 24-hour news channel on DStv with over 50% market share.

eMedia Investments’ results include losses of R307 million from the continued investment into the multichannel businesses from which very little revenue is currently being derived. The OpenView HD platform has increased the number of activated set-top boxes by 100.1% to 778 160 (31 March 2016: 388 812). With this ever-improving roll-out and when DTT starts, the group will be in a good position to increase its revenue base.