THE South African Broadcasting Corporation (SABC) has reported a R395m loss for the year ended March, which it blamed on the country’s poor economic performance and television licence defaulters.
"All those who did not pay television licences are costing us money," said SABC chief executive Frans Matlala on Wednesday. "We would be in a different position if you had paid your licence."
Advertising spend fell in the difficult environment, in which the economy declined 1.3% in the quarter ended June.
In 2014 the company reported a R358m profit. Revenue rose 4% to R7.5bn in the period.
The company tried to downplay the significance of the poor performance, saying profitability is not necessarily the SABC’s mandate. "The most important thing is that the organisation is sustainable," said Mr Matlala. "Financial results are nothing but a scoreboard."
Mr Matlala said the company was able to sustainably fulfil its mandate of broadcasting "to every South African in their own languages. The ultimate message is this: the SABC has a sustainable future and will continue to fulfil its mandate."
The company will accelerate its licence fee collections in the future.
Cash in the bank dropped R400m to R1bn, the financial report shows. The company incurred increased expenditure, paying royalties to artists and investing in sports and film rights, it said. "We’re not shy to spend money on the things we believe in," said Mr Matlala.
Picture: SUNDAY TIMES
THE South African Broadcasting Corporation (SABC) has reported a R395m loss for the year ended March, which it blamed on the country’s poor economic performance and television licence defaulters.
"All those who did not pay television licences are costing us money," said SABC chief executive Frans Matlala on Wednesday. "We would be in a different position if you had paid your licence."
Advertising spend fell in the difficult environment, in which the economy declined 1.3% in the quarter ended June.
In 2014 the company reported a R358m profit. Revenue rose 4% to R7.5bn in the period.
The company tried to downplay the significance of the poor performance, saying profitability is not necessarily the SABC’s mandate. "The most important thing is that the organisation is sustainable," said Mr Matlala. "Financial results are nothing but a scoreboard."
Mr Matlala said the company was able to sustainably fulfil its mandate of broadcasting "to every South African in their own languages. The ultimate message is this: the SABC has a sustainable future and will continue to fulfil its mandate."
The company will accelerate its licence fee collections in the future.
Cash in the bank dropped R400m to R1bn, the financial report shows. The company incurred increased expenditure, paying royalties to artists and investing in sports and film rights, it said. "We’re not shy to spend money on the things we believe in," said Mr Matlala.
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