INVESTMENT REVIEWS

Media interests

CONTRIBUTION TO HEADLINE EARNINGS

  Fifteen Twelve
  months months
  ended ended
  30 June 31 March
  2011 2010
  R million R million
Sabido 116  11 
MARC (14)
One Digital Media (30)
Premier Team Holdings (52)
  20  17 

SABIDO INVESTMENTS (PTY) LIMITED (SABIDO)

 

Profile

Sabido has a range of media interests, the most significant of which is e.tv. e.tv is the only independent free-to-air television broadcaster in South Africa.

 
Equity valuation at 30 June 2011

R4 445 million
 
31.6% EFFECTIVE INTEREST
   
 


Chief Executive Officer

M Golding

Remgro nominated directors

H J Carse, J J Durand

 

Unlisted

Website: www.etv.co.za


Sabido has a March year-end and therefore its results for the twelve months to 31 March 2011 have been equity accounted in Remgro’s results for the period under review.

Remgro has an effective interest of 31.6% in Sabido which has a range of media interests, the most significant of which is South Africa’s only private free-to-air television channel, e.tv, and its sister news service, the eNews channel. Sabido’s contribution to Remgro’s headline earnings for the period under review amounted to R116 million. This amount includes a charge of R11 million relating to the amortisation of intangible assets, identified as part of the acquisition of VenFin.

The latest results from the All Media Products Survey indicate that e.tv’s audience has grown by 400 000 to 15.2 million viewers. e.tv remains the largest English-medium television channel in South Africa and the second most watched channel overall. Despite significant gains by pay-television into e.tv’s core target market, e.tv has managed to maintain audience growth with a strong local programming line-up. The delay in launching digital terrestrial television, which would provide a multi-channel free-to-air platform, continues to aggravate the loss of audiences by free-to-air television channels to pay-TV. Programming costs have remained stable and although e.tv’s advertising revenue was negatively affected by the 2010 FIFA World Cup, it managed to achieve its annual target by the end of its financial year. e.tv Africa, the channel’s pan-African syndicated service, launched on DStv’s pan-African service in December and is now available in 49 countries across the continent.

The growth in pay-TV subscribers on DStv has benefited the eNews Channel which has retained its position as market leader among news channels in South Africa. The channel is now also available to DStv subscribers in the rest of Southern Africa. The launch of eNuus (a daily half-hour Afrikaans news bulletin) on KykNET has been well received with eNuus appearing consistently in KykNET’s top five programmes and taking share from SABC 2’s Afrikaans news bulletin.

In early 2011, Sabido acquired a 47.4% stake in The Africa Channel, a pay-television channel in the United Kingdom which is broadcast on the Sky retail bouquet. The eNews Africa bulletins (which are currently broadcast on e.tv Africa) is being broadcast on The Africa Channel since April 2011. Sabido has also acquired 100% of Power, the United Kingdom’s eighth largest programme distributor. This will consolidate e.tv’s capacity to distribute content on a worldwide basis.

MARC GROUP LIMITED (MARC)

 

Profile

MARC is an investment company in the sport and entertainment industry in South Africa. MARC also has investments in sports brands and specialises in the creation, acquisition and commercialisation of sports branding rights.

 
Equity valuation at 30 June 2011

R212 million
 
34.5% EFFECTIVE INTEREST
   
 


Chief Executive Officer

S de Villiers

Remgro nominated directors

P J Liddiard, N J Williams

 

Unlisted

Website: www.marcgroup.co.za


MARC has a December year-end and therefore its results for the eighteen months to 30 June 2011 are included in Remgro’s results for the period under review.

MARC is an investment company in the sport and entertainment industry in Africa, focusing on activations marketing and rights commercialisation as well as certain strategic joint ventures and investments in sports brands. The group operates in 13 different African countries of which South Africa, Nigeria and Kenya are the biggest markets.

After allowing for the negative fair value adjustment on the conversion right relating to the MARC convertible preference shares its contribution to Remgro’s headline earnings for the period under review amounted to a loss of R14 million (2010: R5 million headline earnings).

MARC’s headline earnings for the six months to 30 June 2011 amounted to a loss of R10 million (2010: R13 million headline earnings). The weaker earnings can be attributed to once-off FIFA World Cup-related earnings during 2010, as well as decreased sponsorship spend by one of MARC’s major customers during the current period.

OTHER MEDIA INTRESTS

ONE DIGITAL MEDIA (PTY) LIMITED (ODM)

 

Profile

ODM is a leading digital media network provider to brand owners and retailers, giving them the ability to flight dynamic content via broadcast or narrowcast to multiple environments or single LCD screens.

 

Website: www.onedigitalmedia.com

48.1% EFFECTIVE INTEREST

PREMIER TEAM HOLDINGS LIMITED (PTH)

 

Profile

PTH is a sports and leisure group based in the United
Kingdom.

 

Website: www.mbnpromotions.co.uk

50% EFFECTIVE INTEREST