These annual results – as reported by the SABC – show the broadcaster increased its profit by 75%. Profit after tax of R321.2-million was, however, due largely to the recognition of a R420.8-million pension fund surplus. Last year the SABC showed a R182-million profit.
align=justifyExpenses incurred by the broadcaster also increased. According to the annual report, R76-million had to be written off for programming that was not shown within the licensed period. The SABC also raised a new provision against debtors of R41-million in recognition of the tougher economic environment, and staff costs increased due to a higher headcount and higher salaries. Some R40.6-million in expenditure was also incurred which, in terms of the Public Finance Management Act, is “wasteful”.
align=justifyThe corporation has started a process to manage costs more effectively. Duncan says: “The results underline the fragile financial status of the public broadcaster. The SABC is in a very, very vulnerable position. If you strip out the amount of R420-million for the pension fund surplus, you will see that the SABC is actually not doing well. The operating expenses outstrip the operating income. This is very worrying.”
align=justifyWith advertising accounting for 81% of total revenue, the corporation’s income from commercial advertising grew by 14% to R3.1-billion. A further R568-million of commercial revenue was generated from sponsorships and other avenues. However, sponsorships fell 9% from the previous year’s results.
align=justifyDuncan says it is unlikely that adspend will increase next year as it did this year because “there will be a contraction in adspend due to the current economic situation. Costs are also going to escalate as the SABC prepares for digital migration and (the) 2010 (World Cup). The SABC is in for a rough ride in the future. It will have to look to government to bail it out”.
align=justify!_LT_U href=”https://www.sabc.co.za/portal/site/sabc/template.PAGE/menuitem.06ce2e29c128ca9814a85257a24daeb9/?javax.portlet.tpst=bf665d5a6835da9814a85257a24daeb9&javax.portlet.prp_bf665d5a6835da9814a85257a24daeb9_viewID=content&javax.portlet.prp_bf665d5a6835da9814a85257a24daeb9_docName=SABC%20Annual%20Report%202007-8%20released&javax.portlet.prp_bf665d5a6835da9814a85257a24daeb9_folderPath=%2Fv7%2FSABC%20Corporate%2FPress%20and%20Media%2F&beanID=1971837063&viewID=content&javax.portlet.begCacheTok=com.vignette.cachetoken&javax.portlet.endCacheTok=com.vignette.cachetoken” target=_blank mce_href=”https://www.sabc.co.za/portal/site/sabc/template.PAGE/menuitem.06ce2e29c128ca9814a85257a24daeb9/?javax.portlet.tpst=bf665d5a6835da9814a85257a24daeb9&javax.portlet.prp_bf665d5a6835da9814a85257a24daeb9_viewID=content&javax.portlet.prp_bf665d5a6835da9814a85257a24daeb9_docName=SABC%20Annual%20Report%202007-8%20released&javax.portlet.prp_bf665d5a6835da9814a85257a24daeb9_folderPath=%2Fv7%2FSABC%20Corporate%2FPress%20and%20Media%2F&beanID=1971837063&viewID=content&javax.portlet.begCacheTok=com.vignette.cachetoken&javax.portlet.endCacheTok=com.vignette.cachetoken”Click here!_LT_/U to view the SABC’s full annual report.
align=justifyBroadcasting Amendments Bill
align=justifyThe ANC has agreed to change the Broadcasting Amendments Bill to remove the power of the National Assembly Speaker to have input into who is appointed to the SABC board, reports !_LT_EM href=”https://www.businessday.co.za/articles/topstories.aspx?ID=BD4A861951″ target=_blank mce_href=”https://www.businessday.co.za/articles/topstories.aspx?ID=BD4A861951″Business Day!_LT_/EM.
align=justifyThe Bill, adopted a few months ago, required that the President consult the speaker about the appointment of the SABC board.
align=justifyThe new legislation, in which appointing directors of the board will become an exclusively presidential power, is expected to go through by mid-November, when it should be ready for President Kgalema Motlanthe to sign into law.
align=justifyDuncan says this is better in the long run. “The insertion of the speaker just further muddied the waters. It is better for the speaker not to be there at all.”
