Broadcasting Challenges: Overcoming Adversity

eMedia Holdings, the parent company of Openview and e.tv, expressed concerns about the challenging impact of multiple factors like load shedding, a weakened currency, higher fuel prices, inflation, high interest rates, and rising unemployment, which affected its performance in the first half of 2023.

During this period, eMedia reported a 0.8% decline in revenue to R1.51 billion compared to the same period last year. Headline earnings per share also dropped by 8.4% to 19.5c, leading to a reduced interim dividend of 18c/share, down from 21c previously.

The broadcasting sector felt a significant impact from the negative economic conditions, affecting the company’s overall performance. Despite this, Openview managed to increase its market share from 12.1% to 13.1%, marking an 8.3% growth.

The company faced unexpected spikes in legal fees due to its approach of challenging issues it deems fair to contest. Legal battles with MultiChoice Group over broadcasting rights, including the 2023 Rugby World Cup and channel removals from DStv, contributed to these escalating legal costs.

Despite the challenges, eMedia sustained a 2% growth in television advertising revenue, retaining its position as South Africa’s largest broadcaster by audience share in primetime. e.tv remained its primary source of advertising income.

Openview saw growth, reaching 3.3 million activations, but specific active viewing households weren’t disclosed. The newer pay-TV service, eVOD, exhibited promising growth with an investment of over R160 million in local content, boasting a library of over 5,000 hours of content.