SABC collects R5.7 billion in 2019/2020
AUCKLAND PARK – SABC reports a net loss of R511 million as they continue their retrenchment process.
The South African Broadcasting Corporation’s (SABC) released their 2019/2020 annual report to parliament and the general public on 17 November which indicated that total revenue had declined by 12 per cent year-on-year to a total of R5.7 billion.
The statement released by the SABC gave insight into the financial situation facing the public broadcaster as it simultaneously begins processes to retrench at least 400 workers. The SABC has also incurred a net loss of R511 million over the last financial year but had attributed the losses and declines to a decrease in advertising spent across the industry and the delay in finalising commercial partnerships on digital platforms. Regardless of this, the SABC is confident that they passed the worst and are ready to move onto better days.
The statement read, “While the corporation faced another difficult year that was further compounded by depressed economic activities that particularly affected revenue generation, the public can be reassured that the building blocks to stabilise the corporation are now in place.”
The R511 million loss reflected a 6 per cent decline compared to the previous year. Total expenses were under budget by 23 per cent or R1.8 billion. The cash-on-hand as at 31 March 2020 amounted to R2.1 billion, a marked improvement from the R73 million as of 31 March 2019. TV licence revenue had also come under pressure during this time as this revenue stream declined by 18 per cent year-on-year to R791 million. The delayed use of debt collection agencies resulted in only 24 per cent of the total licence fees billed being realised as revenue.
The SABC has also experienced a decline in irregular expenditure of 40 per cent amounting to R202 million, compared to R336 million at the end of the previous financial year. Year-on-year fruitless and wasteful expenditure stood at R27 million with R26 million of that incurred from interest and penalties due to late payments caused by cash-flow constraints.
The SABC has acknowledged that there is still work to be done to improve their financial standing. They have once again committed themselves to their turnaround plan which will be influenced and supported by the SABC’s emerging revenue-generating opportunities, including commercial partnerships.
The SABC will also rely on revenue being sourced from the anticipated investments in exciting and compelling content, migration to digital platforms, the implementation of a new operating model. All of this in addition to the continued efforts to reduce major cost drivers is how the SABC expect to achieve financial sustainability.
