The SABC board and management in a special announcement to staff, followed by a media briefing luncheon event, said the Corporation had achieved excellent financial results and had successfully met its public service mandate.
In the financial year to March 2006, the SABC almost doubled its profit by increasing its television licence revenue and chasing up unpaid licence fees. Its four areas of funding are advertising (76% of revenue), television licences (19%), government (1%) and other revenue streams (4%).
The SABC generated more than R3,9bn in revenue, up 17% on the previous year, and posted an after tax profit of R383m which represented 97% growth on the adjusted figure of R194m for the last year.
Television licence revenue was 30,1% higher at R739m, compared with 20,3% growth in radio revenue to R736m and a 15,3% increase in television revenue to R2,2bn.
Group CEO Advocate Dali Mpofu boasted that SABC was running 43% local content which was way over the ICASA quota of 35%.
He drew attention to the SABC’s commitment to the local film production industry. “We have launched a range of new initiatives to stimulate the sector, such as the First Timers’ Project to encourage new producers and the Hot Talent Project to retain talent.
“To this effect, we recently injected R45m into the Film Fund for local content production.” Mpofu stressed that the Corporation is committed to placing important resources behind local content, news and sport.
ICASA ordered that the SABC increase the airtime it gave to local languages from April this year. SABC chief financial director, Robin Nicholson said that as this did not play a role in the year under review, the effect of this would therefore not be observable.
In addressing the future, Mpofu identified four areas of importance to the SABC:
a€¢to identify and explore new opportunities presented by the new Electronic Communications Act;
a€¢to increase services for marginalised sections of society;
a€¢to establish a sustainable funding model; and
a€¢to fully prepare for the 2010 World Cup.
