AME delivers double-digit growth for first-half

In both headline earnings and dividends, despite “pressures in the media space”.

JSE-listed African Media Entertainment (AME) – which runs major radio stations like Algoa FM together with other media businesses – posted a strong first-half performance for the six months ended 30 September 2024 on Friday.

Headline earnings per share jumped 19%, to 246.9 cents, resulting in the group also reporting double-digit growth in its half-year dividends. It declared an interim dividend of 120 cents per ordinary share.

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“The group was able to improve its performance in comparison to the comparative reporting period ended 30 September 2023, which was mainly driven by the renewed revenue initiatives implemented and growth in market share,” AME said in its half-year results statement on Sens.

Financial highlights:

Revenue – up 8% at R154.2 million
Operating profit – up 23% to R24.3 million
Net profit before tax – up 13% to R28.9 million
Profit attributable to equity holders – up 19% to R17.3 million
Headline earnings – up 18% to R 17.1 million
Earnings per share – up 20% to 249.8 cents
Headline earnings per share – up 19% to 246.9 cents
H1 dividend – up 20% to 120 cents gross (H1 2023: 100 cents gross)

Besides its big brand radio assets, AME is invested in digital media services and publishing businesses. Moneyweb is a subsidiary of AME.

In the period under review, AME generated cash from operating activities of R27.6 million (2023: R23.4 million). The group spent R4.5 million (2023: R2.6 million) on capital expenditure and paid dividends totalling R26.9 million (2023: R20.2 million) to its equity holders and non-controlling interest holders.

The group ended its first half with a cash balance of R66.1 million (2023: R57.1 million).

“The varied performances of the business units are a reflection of the successes and challenges in the different economic segments,” AME noted.

Various business units performed as follows:

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• Algoa FM: Year-on-year growth in non-traditional revenue, digital revenue, and event revenue helped to improve the bottom line.
• Central Media Group (CMG): The earnings of Free State-based OFM and digital platforms improved from the prior year. Over the next few months, CMG will aim to stabilise costs and improve revenue generation despite tough trading conditions.
• MediaHeads 360: The past six months have been a challenging period. Although expectations were met in the first quarter, there were hurdles in the second quarter amid a challenging economic climate.
• United Stations: There has been “resilient” growth across the entire media portfolio, and the segment achieved year-on-year growth.
• Moneyweb: There has been a marginal improvement in radio and digital sales, despite starting the year “on the back foot”. The forthcoming six months look positive, amid a tough trading environment and continued pressures in the media space.

Read: There’s a crisis in South African newsrooms

AME’s board said that it expects trading conditions in the media industry for the 2025 financial year to remain challenging.

The group’s share price firmed over 3% on Friday, to R40 a share, following the release of its latest results. It is up over 17% year-to-date.

AME share price

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