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Johnnic sticks to telecom-focused strategy

By Staff Reporter, ITWeb
Johannesburg, 22 Jun 2001

Johnnic says it has begun to reap the benefits of its restructuring and repositioning of group businesses over the past three years.

Headline earnings per share from continuing operations, excluding foreign exchange gains, increased by 92% to 353c from 184c the previous year.

Revenue increased by 29% to R11 billion from R8.5 billion achieved the previous year. Earnings before interest, taxation, depreciation and amortisation (EBITA) increased by 32% to R3 billion.

Operating profit before goodwill amortisation grew 34% to R2.07 billion from R1.6 million.

The telecommunications division lead by M-Cell accounted for the majority of the group`s revenue for the year, coming in at R8.34 billion. Media (including TML and BDFM) accounted for R947 million and digital media R51.7 million.

Johnnic says it places serious store on its telecoms division and remains committed to its African expansion.

During the year, cellular subscriber MTN won one of three cellular contracts in Nigeria and management announced M-Cell will pay increasingly less dividend in the future to fund its growth.

Digital media division Johnnic e-Ventures, launched in April 2000 to house the group`s e-business interests, achieved revenue of R51.7 million but posted EBITA and headline earnings losses of R24.4 million and R36.9 million respectively.

The division`s losses were attributed to development costs but group management remains confident the division is on track to reach profitability in its third year of business.

e-Ventures, with sister company MTN, most recently jointly acquired Internet service provider Citec for R25 million.

The Johnnic share price produced no significant reaction to the company`s financial results, dipping slightly from its R60.30 opening to trade at R59.50 by midmorning today.

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