Despite the negative effects of load shedding on advertising revenue, eMedia Holdings, the parent company of e.tv, eNCA, and OpenView, expressed satisfaction with its stable profit performance. For the fiscal year ending in March, the company reported a 10% decrease in group profit, totalling R378 million. However, despite the impact of unprecedented load shedding, which resulted in a loss of around R500 million in advertising revenue for the industry, it managed to achieve slight growth in operating profits.
eMedia Holdings implemented a variety of strategies to address the challenges and remain competitive. It allocated an additional R20 million to marketing efforts in order to reach a larger audience. Furthermore, the company incurred a deferred tax asset of R16 million from the previous year, which contributed to the profit decline. Despite these factors, core profit (earnings before interest, taxes, depreciation, and amortization) increased slightly to R667.2 million.
Despite setbacks, eMedia Holdings managed to maintain revenue of R3.1 billion, a marginal decrease of R20 million from the previous year. Pressure on television advertising and a reduction in the eNCA license fee received from MultiChoice were cited as contributing factors by the company. Despite the challenges posed by load shedding, eMedia Holdings outperformed the market in terms of advertising revenue performance in both the television and radio segments.
This positive performance was attributed to the company’s ability to maintain a prime-time audience market share of 34.5% in March 2023, a slight increase from 34.1% in the same month the previous year. eMedia Holdings emphasized its commitment to maintaining its market-leading position in audience share through the implementation of various technological advancements and strategic planning.
On the Johannesburg Stock Exchange (JSE), eMedia Holdings’ shares, which are worth approximately R1.4 billion, fell nearly 10% in afternoon trade on Thursday. The company’s stock has dropped by nearly a quarter in the last year.
Finally, despite the challenges posed by load shedding and its impact on advertising revenue, eMedia Holdings was able to maintain a consistent profit performance and outperform the overall market. To maintain its position as a market leader in audience share, the company is committed to implementing technological advancements and strategic planning.
