AME shares rise after positive trading update

Shares in radio broadcasting group African Media Entertainment (AME) jumped as much as 19.4% in early trade on Tuesday after the company said its full-year headline earnings are expected to rise by as much as 67%.

AME, which owns radio assets and a portfolio of digital media services, publishing and business broadcasting assets, expects headline earnings per share (HEPS) for the year to end-March to be between 740c and 810c — an increase of 53%-67%.

Earnings per share (EPS) would be 52%-67% higher at 740c-810c, it said in a statement on Tuesday. 

The operator of Moneyweb and Algoa FM, which gave no reasons for the expected increase in earnings, said it would release its annual financial report on May 30.

Shares in the little-traded stock were up 19.44% at R43 in early trade on the JSE.

Financial Mail reported that AME’s main assets were with regional radio and digital media. It owns Algoa FM, which operates along the Garden Route from George past Gqeberha to East London and as far inland as Colesberg. It also owns OFM, broadcasting to an audience spanning Bloemfontein, Kimberley, Klerksdorp, Potchefstroom and Vereeniging.

Its best-known media asset is probably the financial website Moneyweb, which claims unique visitor traffic of between 1-million and 1.5-million. Other assets are in digital media services, publishing and business broadcasting assets. AME also has a strategic interest in Hot 102.7, a commercial music radio station that broadcasts across Gauteng.

For the six months to end-September 2023, the group, which has a JSE market capitalisation of about R300m, reported a 28% rise in profit to R18.3m as revenue grew 11% to R143.1m, with revenue initiatives it implemented in the past year and increased market share resulting in an improved performance.

mackenziej@arena.africa