Avusa posts fall in profit

2009-11-20 09:31

Avusa posted a sharp fall in first half profit, the media company

said today.

It blamed the drop largely on softer margins from reduced

advertising revenues, it said in a statement following the release of its

results for the six months ended September 30.

Revenue dropped 5%, from R2.330?billion to R2.202?billion, while

gross profit dropped by R91?million compared to the same period last year.

“The Avusa Media business mirrored the recessionary climate,

delivering 20% lower advertising revenues.

The retail, entertainment, and books

and maps businesses saw no profitability growth from reduced consumer

discretionary spending,” Avusa said in statement.

The success of group-wide cost-cutting initiatives had resulted in

operating costs being held at the prior year’s level inclusive of general

overhead inflation, digital developmental costs of R10 million and unrealised

foreign exchange losses of R14 million.

CEO Prakash Desai forecast the current “softer” trading would

continue until the end of the current financial year.

The company recently shut down its Weekender newspaper.

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