SABC posts R977m loss

Cape Town - The South African Broadcasting Corporation posted a R977m loss after tax for the 2016/17 financial year, its annual report tabled in Parliament on Tuesday revealed.

The public broadcaster's net loss for the year ending March 2017 more than doubled from R412m in 2016, following a year of upheaval that included the dissolution of the permanent board in late 2016.

Revenue declined from R8.1bn in 2016 to R7.6bn, representing a 6% year-on-year decrease.

Advertising also dropped 5% to R5.6bn, in a year that saw former chief operating officer Hlaudi Motosoeneng implement the 90:10 local content policy in May.

Sponsorship revenue declined by 18% to R384m, while TV license revenue decreased 7% to R915m.

Operational expenses remained the same at R8.6bn.

The report also said that the SABC had a cash balance of R82m, representing a net outflow of R800m since the previous year.

"The fact that operational cash was used to fund capital expenditure projects, the cost of delivering on broadcaster's public service mandate and the rising cost of Sports Rights contribute to the pressure being placed on the organisation's cash reserves," the report reads.

Turnaround

An interim board was appointed by President Jacob Zuma on March 26, 2017, following a lengthy inquiry process into the broadcaster and Parliament's approval of 5 names to serve in the interim.

The new board, led by interim chairperson Khanyisile Kweyama, made inroads into turning the beleaguered broadcaster around, and has been praised by both the portfolio committee on communications and standing committee on public accounts.

The interim board's mandate expires this week. The National Assembly approved a list of 12 names for non-executive board positions on September 5, which only await President Zuma's approval.

They include all five interim board members.

The 12 are: Michael Markovitz, Khanyisile Kweyama, Mathatha Tsedu, Nomvuyiso Batyi, Rachel Kalidass, Victor Rambau, John Matisonn, Jack Phalane, Krish Naidoo, Febe Potgieter-Gqubule, Dinkanyane Mohuba and Bonbumusa Makhathini.

SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
ZAR/USD
16.28
(+0.28)
ZAR/GBP
21.38
(+0.29)
ZAR/EUR
19.30
(+0.32)
ZAR/AUD
11.58
(+0.23)
ZAR/JPY
0.16
(+0.20)
Gold
1918.00
(-0.17)
Silver
24.88
(-0.22)
Platinum
890.00
(+0.73)
Brent Crude
42.06
(-3.35)
Palladium
2397.06
(+1.11)
All Share
55021.92
(-0.58)
Top 40
50579.29
(-0.64)
Financial 15
10215.94
(+0.76)
Industrial 25
74303.41
(-0.37)
Resource 10
53709.26
(-1.36)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
27% - 45 votes
No, I did not.
48% - 80 votes
My landlord refused
26% - 43 votes
Vote