eMedia Holdings has reported a dip in both revenue and net profit for the fiscal year ending 31 March 2024, attributing the downturn to persistent load-shedding, a Hollywood actors’ strike, and ongoing legal disputes with MultiChoice.
Despite the decline, eMedia described the year’s performance as “satisfactory” given the efforts to mitigate the effects of load-shedding on its operations. The company highlighted that power outages had led to reduced viewership, which in turn caused a drop in advertising revenue.
The Hollywood strike, which involved actors and writers at the start of the financial year, also significantly impacted eMedia’s subsidiary, Media Film Service. The strike led to a R31.5 million decrease in profit after tax compared to the previous year.
Adding to these challenges was the continued legal battle with MultiChoice, costing eMedia an additional R8.8 million this year. The legal fees are part of a broader dispute over broadcasting rights, which eMedia argues have been unfairly restricted by MultiChoice.
Financial figures for the year underscore the impact of these challenges. eMedia’s revenue fell by 2.1%, from R3.12 billion in the previous fiscal year to R3.06 billion. Net profit saw a sharper decline of 11.6%, dropping from R377.7 million to R333.9 million.
“Notwithstanding all the negative impacts to business operations in the macro-economic environment in South Africa, the Group was able to return favourable results,” eMedia stated, reflecting a cautious optimism in the face of adversity.
The legal wrangling with MultiChoice centers around broadcasting rights for major sporting events. Last year, MultiChoice and the South African Broadcasting Corporation (SABC) struck deals allowing the SABC to air key Rugby and Cricket World Cup matches, including games featuring the Springboks and Proteas, as well as the semi-finals and finals. However, these deals prevented the SABC from broadcasting the matches on any channels available on eMedia’s Openview platform.
eMedia accused MultiChoice of anti-competitive practices and sought legal redress. In April 2024, the Competition Tribunal sided with eMedia, granting an interdict requiring MultiChoice to permit the SABC to broadcast live sports sub-licensed from SuperSport on Openview. This interim relief is in place pending the final resolution of eMedia’s complaint or for six months, whichever is sooner.
“The Tribunal has granted eMedia interim relief pending the final determination of its complaint to the Commission, or for a period of six months (whichever occurs first),” the company stated. “MultiChoice, including its subsidiary SuperSport, and the SABC are interdicted from implementing and enforcing any restriction in the (existing) sub-licensing agreements entered into between them.”
As eMedia navigates these hurdles, the company remains focused on overcoming the broader economic and operational challenges facing the South African media landscape.
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