PRINT MEDIA
Due to declining consumer spending in South Africa, the print media segment had a tough year. After a number of years during which we launched new projects and titles, a number of weaker titles were pruned this year. Revenues grew by 8%, whilst operating profit before amortisation and other gains/losses is 11% down on last year, largely the result of development costs. In the year ahead,
the key focus will be on improving
margins and cash flows.
Newspapers, magazines and printing
Circulation growth for titles such as Daily Sun, Son and Soccer Laduuuuuma!, which focus on the emerging market, remains positive, as well as for titles in certain niche markets such as Weg.
There was a marked slowdown in advertising support, particularly in the magazine business. After circulation incidents affecting some magazine titles, the affected advertisers were refunded.
The print media business, Paarl Media, experienced a solid year with the new plant in Gauteng exceeding original expectations.
In Brazil Abril performed well on the strength of a unique magazine delivery network. The cable distribution service, TVA, was disposed of during the period. Abril’s contribution to group core headline earnings was R150 million.
Book publishing and private education
Revenues and operating profit at the SA unit were reduced by the disposal of retail assets, Van Schaik Retail and Afribooks. The performance of the remaining assets was satisfactory. The private education business was sold during the year and has been treated as a discontinued operation. |
