Cape Town - Tiso BlackStar Group, parent company of Times Media Group (TMG), has announced a shift in its media strategy in the face of declining print revenues.
In its 2015 unaudited interim results, the company said that, despite profitable publications, there was pressure on the bottom line.
“There are too many titles competing for declining advertising spend and unless there is a conscious effort to consolidate, there may be significant failures. Many titles in South Africa are marginal and will struggle to survive further declines without fundamental change,” the company said.
It told shareholders that it was intent on becoming a “single sector company, focused on media” resulting in some assets becoming “non-core”.
Tiso will also explore media acquisitions in South Africa, Kenya, Ghana and Nigeria, specifically broadcast businesses.
“Each opportunity will be considered in terms of whether Tiso Blackstar can add value by leveraging off its existing asset base whether it meets an acceptable risk return profile, whether it has a coherent and achievable strategy, and whether the acquired opportunity can be leveraged to benefit the existing asset base,” the company said.
The company announced that its shift to digital is underway at its media publications as it embarks on cost cutting measures.
“A number of tough choices need to be made in our media division in the face of declining advertising revenues, especially from government, and in line with international trends. We are also looking at a range of new revenue streams, some of which are already delivering earnings,” the company statement read.
Tiso declared an interim dividend of 3.74 cents per ordinary share.
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