Thursday, May 31, 2012
South Africa's free-to-air commercial broadcaster e.tv more profitable thanks to ongoing growth in advertising revenue.
Sabido revenue is up 18% to R1,9 billion for the year to end March, mostly attributed to advertising revenue growth.
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e.tv as the media and television part of HCI continues to be a star performer since the broadcaster started turning a profit in late 2003 for the first time after e.tv started in 1998. e.tv receives no TV licence fees and income is derived from sponsorships and advertising.
According to HCI's consolidated results on 21 July 2011 Sabido acquired Powercorp International Limited, a London based global content distributor of films and television series.
An interest of 80% and 90% respectively were acquired in September 2011 in Media Film Equipment Services and Media Film Services Incorporated - both of them sell and rent specialised equipment.
What could impact e.tv and Sabido's profitability in the not-too-distant future would be South Africa's switch-over to digital terrestrial television (DTT), a process known as digital migration. Both the hard switch-over in terms of infrastructure and signal distribution costs, as well as the massive amount of more programming and programming costs, make this a very capital intensive compulsory exercise for all South African broadcasters.