The South African Broadcasting Corporation (SABC) announced its annual results for the 2016/2017 financial year.
The SABC posted a net loss after tax of R977 million during the year under review. The organization experienced financial constraints owing to revenue streams deteriorating at a rate of 6% higher than the costs reduction. Cash and cash equivalents as at the end of 2016/17 financial year were R82 million compared to the previous year’s R881 million. This significant decrease in cash reserves has resulted in the SABC not being able to pay its debts as they fall due.
Revenue and other income for the period under review was R7.6 billion (2016: R8.1 billion) which is a 6% decrease year-on-year. Revenue is mainly derived from the primary revenue stream of advertising which decreased by 5% to R5.6 billion (2016: R5.9 billion), sponsorships revenue also decreased by 18% to R384 million (2016: R469 million), and TV license revenue also decreased by 7% to R915 million (2016: R986 million) compared to prior year.
The corporation received an adverse audit opinion for the period under review. The factors which contributed to this adverse opinion include amongst others; going concern basis of accounting, property plant and equipment, irregular expenditure and deferred government grants.
Despite all these challenges, the SABC was able to deliver on its on its public service mandate, as set out by the Broadcasting Act No 4 of 1999 as amended, as well the Independent Communications Authority of South Africa (ICASA).
See the full press release here – www.sabc.co.za/sabc/category/press/
The SABC Annual Report 2016/17 can be viewed here – ANNUAL REPORT 2016/2017
Issued By: Group Communications
Media Enquiries: Mr Kaizer Kganyago (SABC Spokesperson) | Cell: 082 306 8888