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Review of operations

 
 
 
 
 
 
  Revenue* (in rand millions)
   
2008  
9 082  
2009  
10 520  
   
   
  Ebitda* (in rand millions)
   
2008  
1 357  
2009  
1 363  
   
   
  Operating profit* (before amortisation and other gains/(losses) in rand millions)
   
2008  
1 149  
2009  
1 058  
   
* Including our share of Abril.
  Beeld, Daily Sun, City Press, Die Burger, DRUM, FAIRLADY, FHM, HUISgenoot/YOU, KICKOFF, Move!, ON THE DOT, Paarl Print, All Sports and Vejá  
 

PRINT MEDIA

Brazil

The group has a 30% interest in Abril, the leading magazine publisher in Brazil.

Abril had a good year, achieving turnover and profit growth.

In the year under review, circulation market share increased to approximately 45% with growth of single-copy sales. Abril’s share of the magazine advertising market in Brazil is 61%. Generally, magazines seem not as impacted by the migration to the internet as newspapers. Abril expanded its distribution business with the acquisition of Fernanda Chinaglia, which was merged with its own Dinape operation. Its printing business delivered a stable contribution.

Abril’s school text book publisher, Atica & Scipione, had a satisfactory year and increased its market share of non-government school text books from 22% to 28%.

China

MIH now owns a 37% interest in Xin’an Media Corporation, a newspaper publisher in the fast-growing city, Hefei, in Anhui province. MIH also owns a 37% stake in the leading sports publisher in China, Titan Media, which benefitted from the Olympic Games.

Beijing Media Corporation Limited, in which the group has a 9,9% interest and which operates a leading Beijing newspaper, the Beijing Youth Daily, had a satisfactory year, despite tough advertising markets.

South Africa

Media24 experienced difficult trading conditions. Emerging market products, like Move!, DRUM, Sunday Sun and Son continued to show strong circulation growth. Generally, the circulation of our magazines and newspapers remained resilient. As a matter of fact, when people are affected by a recession, they typically spend more time at home and use media more.

However, advertising revenue grew by single digits, while input costs like paper, ink and fuel increased more. Management acted decisively to reduce the cost base, which included staff reductions and the closing of unprofitable titles.

Newspapers

The past year saw a number of changes at Media24 Newspapers, including several key editorial appointments. Media24 Newspapers sought closer cooperation between community newspapers and daily titles, and refocused to accommodate a shift in advertising buying patterns.

Daily Sun remains the continent’s largest daily newspaper, with a circulation of more than 500 000. Sunday Sun’s circulation grew to 214 357. The tabloid publication Son grew circulation to 107 899.

 
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