According to eMedia Holdings' financial results for the year ending 31 March 2019 its Openview free-to-air satellite-TV service remains loss-making although it's now adding 35 000 set-top-box sales per month, its eNCA (DStv 403) remains the most-watched TV news channel in South Africa, and e.tv's prime time audience share rose slightly thanks to local content as it reduced movie slots.
e.tv's Openview continues to be a loss-making operation although it is adding 35 000 activated set-top boxes (STBs) per month, according to eMedia Holdings that has released its financial results for the year ended 31 March 2019.
eMedia now has 1.57 million "activated" Openview decoders in South Africa and Southern Africa.
eMedia Holdings runs e.tv, the Openview platform and the eNCA (DStv 403) TV news channel on MultiChoice's DStv satellite pay-TV service.
eMedia Holdings on Thursday reported a R117.6 million profit for its year ending 31 March 2019, compared to a loss of R1.5 billion during the previous financial year. eMedia Holdings has an interest of 67.69% in eMedia Investments.
This content costs of R255.7 million was up from R173.6 million the previous year, with the increase that is attributed to the launch of the new Open News TV news channel, as well as the block of Afrikaans language content on the eExtra channel, and the launch of the eReality channel in November 2018.
According to eMedia Holdings, these content changes have increased the market share on other e.tv packaged channels from 2.6% in March 2018 to 4.6% in March 2019.
Operating costs, including retail subsidies of R55.3 million amounted to R185.4 million compared to R193.6 million in the prior year. The reduction is attributed to a reduction in subsidies of set-top boxes from R150 to R75 per box in October 2018 as well as the exit from the SES contract.
eMedia Holdings says that despite the reduction in subsidies of STBs, Openview set-top box activations continue to grow at an average of 35 000 per month.
At the end of the period, a total of 1 574 395 (compared to 1 149 217 in 2018) Openview boxes have been activated and a total of R55.3 million (2018: R74.5 million) has been spent on retail subsidies.
During the financial year Openview also launched the personal video recording (PVR) functionality for the Openview box although it didn't publicise it widely, and says that in the new financial year it will "launch of a few more technical initiatives".
Tough conditions for free-to-air broadcasting in South Africa
eMedia Holdings says tough trading conditions continue for the free-to-air broadcasting industry in South Africa, with advertising revenue that remains under increased pressure.
Despite this, eMedia showed an increase of 4% in advertising revenue from R1.577 billion to R1.638.8 billion for the financial year.
The cost of sales - mainly e.tv content costs and employee costs at the eNCA channel - increased by 1% from R1.199 billion to R1.211 billion.
eNCA remains most watched TV news channel
"Despite eNCA only being on some of the premium DStv bouquets while SABC News is on all the bouquets and the DTT platform, eNCA continues to be the most watched 24-hour news channel in the country with 45% of the market share. While advertising revenue remains under pressure, costs are being well maintained in light of the reduced DStv contract that is in its second year," eMedia said.
e.tv prime time audience slight up
e.tv reduced the number of movie slots after a market analysis of what movies work for the channel which eMedia Holdings says helped to improve e.tv ratings, while e.tv executives are working on ways of further improving the e.tv schedule in the next financial year.
eMedia Holdings says that South Africa's TV market is facing several technology and viewership challenges that means that the group must constantly assess "its strategic alternatives".
"Our investment in Openview provides the group with strategic flexibility and is part of our plan to address the challenges of the impending digital migration transition. We continue to engage government on its digital terrestrial television (DTT) and direct-to-home (DTH) plans."
"With the sale and our closure of certain non-core assets during the year, the group is focused on its core businesses of broadcasting, content creation and a platform and technology provider."
