Deals concerning Classic 1027 and Moneyweb cost AME in 2018 financial year
AME chairman Connie Molusi says a drop in a profit is mainly due to Classic 1027 and Moneyweb losses and acquisition transaction costs
The acquisitions of financial website Moneyweb and 46% of Classic 1027 caused radio station-owner African Media Enterprises (AME) to cut its dividend by 14% to R3 for its 2018 financial year.The owner of the Eastern Cape’s Algoa FM and the Free State’s OFM grew its revenue 10% to R263m for the year to end-March.Net profit declined by 10% to R51m.AME chairman Connie Molusi said in the results statement the drop in profit "was mainly as a result of Classic 1027 and Moneyweb losses and acquisition transaction costs".The group acquired Moneyweb in August for R9.4m cash and 277,210 shares. It paid R7m in December for its stake in radio station Classic 1027."The acquired business contributed incremental revenues of R12.7m and a loss before tax of R3.2m to the group for the period from date of acquisition to March 31," Molusi said.AME said in the results statement that the company was "in the process of turning the loss-making station around, partly by re-establishing the collaboration bet...
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