PRINT MEDIA

South Africa

The South African print media operations are held in Media24.

Newspapers

It was a year of intense cost management for this business. Loss-making publications were closed, and businesses streamlined and refocused to ensure that optimal structures are in place for growth.

Cost savings were achieved through staff reductions and improved efficiency.

Despite difficult trading conditions, we grew both advertising and circulation market share.

Emerging-market products continue to perform well. Daily Sun is the largest daily newspaper in Africa, with an average circulation of almost 500 000. The tabloid publication, Son, now has a circulation of 124 572. A Sunday edition, Sondag Son, was launched with sales totaling 57 816. City Press’s circulation now stands at 180 632.

In a challenging climate the broadsheet daily titles performed satisfactorily. The Sunday papers, City Press and Rapport, were both rejuvenated.

We plan to rebuild the profitability of newspapers in the medium term.

Magazines

The past year was one of the toughest for the magazine industry worldwide, marked by declines in advertising. Locally circulation remained remarkably stable. Thanks to the strength of our diverse portfolio of titles, Media24 magazines was able to grow its market share for both advertising and circulation. The division established a dedicated business unit, Thought24, to focus on the growing needs of the female emerging market, with titles such as True Love, Move! and Real. New releases were limited, but included the successful launch of Women’s Health. Some titles were closed.

Via Afrika

The book-publishing business had a tough year. Educational publishers underperformed, due mainly to reduced spend by education departments, whilst general publishers were hit by the economic downturn. However, some units, like NB Publishers, sailed on.

Paarl Media

There was a tragic loss of life in a fire at Paarl Print. Support was given to individuals affected by this event. Their families are in our thoughts. Various lessons have been learnt from the incident as outlined in the sustainability section of this annual report. The re-establishment of Paarl Print as a book and sheet-fed process printer has subsequently been completed.

Margins came under pressure. We had numerous plant amalgamations or moves to ensure that efficiencies of scale and physical location are achieved.

A decision was taken to develop a new printing works in KwaZulu-Natal to enable Paarl Media to provide flexible production facilities to its target market.

On the Dot

On the Dot distributes media products ranging from printed publications to CDs, DVDs and consumer electronic devices. On the Dot focuses on different supply chains for books, magazines, newspapers, digital content, music, consumer electronics and leaflets.

Margins are under pressure, but the downturn is providing opportunities to grow market share, supported by a focus on operational efficiencies. On the Dot aims to expand its services. This embraces the broadest range of electronic devices possible and the delivery of physical goods using print-on-demand technology.