The SABC unveiled a financial turnaround strategy yesterday, revealing that it expected a loss of R784m for the financial year which ends this month, writes Jocelyn Newmarch in Business Day.
It plans to turn this into a R55m profit next year, with a 3% reduction in costs and 14% growth in revenue.
The public broadcaster has been hard hit by a sharp downturn in the TV advertising market, with R400m of the current loss attributable to this. Advertising contributes 86% of the corporation’s funding.
Suppliers are also demanding 50% of payments prior to delivery. Acting CE Gab Mampone said this practice had arisen at the beginning of the current financial year.
Creditors have also shortened payment terms, while debtors have had their terms extended.
Expenses within the organisation have also grown substantially, from R4,382bn last year to R5,595bn as inflation and increased costs for freelancers and consultants, legal fees, the linking of programmes, and payments for programme rights escalated, according to chief financial officer Robin Nicholson’s presentation to the media yesterday.
Staff remuneration was higher than budgeted, due to inflation and to increases in staff numbers.
While radio held up well, and revenue from TV licenc es was as budgeted, SABC3 in particular performed very badly, Nicholson said.
Click here to read the full report, posted on Business Day's website.
Click here to read another report, posted on the Buanews site.
