eMedia profit jumps 1,600%
eMedia Holdings recently reported its financial results for the six months ended September 2021, revealing a significant increase in revenue and profit compared to the same period in 2020.
The group’s portfolio includes free-to-air TV channel E-tv, 24-hour TV news channel eNCA, the Openview satellite TV service, and private radio station YFM.
Like other broadcasters, eMedia was hit hard by the stricter Covid-19 lockdowns that started at the end of March.
With economic activity picking up in 2021, the company’s revenue increased 44%, from R1.049 billion to R1.511 billion.
eMedia pinned the jump on a significant boost to its advertising revenue.
According to eMedia, advertising “had the biggest impact on the results with the revenue ending the period on R1,057.9 million compared to the prior period of R687.2 million, a difference of R370.7 million.”
Television advertising revenue increased by 54%, while radio climbed 59%.
The revenue has helped spur a massive operating profit jump of 1,607%.
eMedia also announced that it is now the biggest broadcaster in South Africa with an overall market share of 32.1% in all day viewing — up from 26.9% in the prior period.
Its nearest competitors are at 29.2% and 27.9%, eMedia stated.
“The challenge now is to maintain our leadership position and continue in this trajectory for the foreseeable future,” said eMedia Investments CEO Khalik Sherrif.
Between April 2020 and September 2020, eMedia saw a stunted profit of R14.4 million. For the same six months in 2021, this amount was R246.5 million.
Profit from continuing operations hit R184.4 million compared to the prior period’s profit of R8.1 million, an increase of 2,177%.
While the vastly different circumstances would appear to have distorted these figures, it is noteworthy that this profit was still 87% more than in September 2019.
In addition, EBITDA for the period amounted to R313.0 million compared to R214.9 million for 30 September 2019, an increase of 46%.
“This shows that even when compared to the non-Covid period of 30 September 2019, the Group has shown healthy growth”, eMedia stated.
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