Our opinion on the current state of AME
African Media Entertainment (AME) is a company which specialises in running radio stations and whose revenue comes principally from advertising on those stations. It has four divisions:
(1) Algoa, which broadcasts from the Garden Route to the Wild Coast,
(2) OFM, which broadcasts in the Free State, North-West province, Northern Cape, Southern Gauteng, and Northern Natal,
(3) United Stations, which sells and creates advertising material for the radio stations, and
(4) Radio Heads, which offers media planning and buying, creative strategy and copy-writing, and syndicated programming.
AME acquired Moneyweb and a share of Classic FM. The company said, "On 30 September 2019 Classic FM South Africa (Pty) Ltd was placed under voluntary business rescue."
In its results for the year to 31st March 2024, the company reported revenue up 8% and headline earnings per share (HEPS) up 63%. The company said, "The group generated cash from operating activities of R64,9 million (March 2023: R43,5 million), paid tax of R15,3 million (2023: R11,6 million), spent R5,4 million (2023: R6,3 million) on capital expenditure and paid dividends of R33 million (2023: R28,7 million) to its equity holders and non-controlling interest holders. The group also repurchased 212 600 shares (2023: 701 775 shares) during the period which resulted in a cash outflow of R6,9 million."
In a trading statement for the six months to 30th September 2024, the company estimated that HEPS would increase by between 16% and 25%.
The share trades an average of R43,000 per day, which makes it barely practical for a small investment. Its portfolio of radio stations has relatively small, specialised audiences. Moneyweb has battled for years to produce significant profits.
(1) Algoa, which broadcasts from the Garden Route to the Wild Coast,
(2) OFM, which broadcasts in the Free State, North-West province, Northern Cape, Southern Gauteng, and Northern Natal,
(3) United Stations, which sells and creates advertising material for the radio stations, and
(4) Radio Heads, which offers media planning and buying, creative strategy and copy-writing, and syndicated programming.
AME acquired Moneyweb and a share of Classic FM. The company said, "On 30 September 2019 Classic FM South Africa (Pty) Ltd was placed under voluntary business rescue."
In its results for the year to 31st March 2024, the company reported revenue up 8% and headline earnings per share (HEPS) up 63%. The company said, "The group generated cash from operating activities of R64,9 million (March 2023: R43,5 million), paid tax of R15,3 million (2023: R11,6 million), spent R5,4 million (2023: R6,3 million) on capital expenditure and paid dividends of R33 million (2023: R28,7 million) to its equity holders and non-controlling interest holders. The group also repurchased 212 600 shares (2023: 701 775 shares) during the period which resulted in a cash outflow of R6,9 million."
In a trading statement for the six months to 30th September 2024, the company estimated that HEPS would increase by between 16% and 25%.
The share trades an average of R43,000 per day, which makes it barely practical for a small investment. Its portfolio of radio stations has relatively small, specialised audiences. Moneyweb has battled for years to produce significant profits.
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