African Media Entertainment (AME) is a company specializing in running radio stations, with revenue coming principally from advertising on those stations. It has four divisions:
1. **Algoa FM**: Broadcasts from the Garden Route to the Wild Coast.
2. **OFM**: Broadcasts in the Free State, North-West province, Northern Cape, Southern Gauteng, and Northern Natal.
3. **United Stations**: Sells and creates advertising material for the radio stations.
4. **Radio Heads**: Offers media planning and buying, creative strategy and copywriting, and syndicated programming.
AME recently 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." The share is extremely thinly traded, making it impractical for private investors.
In its results for the six months to 30th September 2023, the company reported revenue up 11% and headline earnings per share (HEPS) up 39%. The company said, "The group generated cash from operating activities of R23.4 million (September 2022: R18.2 million), paid tax of R7.6 million (September 2022: R5.5 million), spent R2.6 million (September 2022: R3.8 million) on capital expenditure and paid dividends to its equity holders and non-controlling interest holders of R20.2 million (September 2022: R15.7 million)."
In a trading statement for the year to 31st March 2024, the company estimated that HEPS would increase by between 53% and 67%. The share trades an average of R85,000 per day, which makes it practical for a small investment. Its portfolio of radio stations has relatively small, specialized audiences. Moneyweb has battled for years to produce significant profits.
Despite the company's improved financial performance and optimistic outlook, the thin trading volume and the specialized nature of its audience and services mean it remains a niche investment. Investors should be cautious and consider the liquidity risk and the challenges faced by the media and advertising industry.
1. **Algoa FM**: Broadcasts from the Garden Route to the Wild Coast.
2. **OFM**: Broadcasts in the Free State, North-West province, Northern Cape, Southern Gauteng, and Northern Natal.
3. **United Stations**: Sells and creates advertising material for the radio stations.
4. **Radio Heads**: Offers media planning and buying, creative strategy and copywriting, and syndicated programming.
AME recently 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." The share is extremely thinly traded, making it impractical for private investors.
In its results for the six months to 30th September 2023, the company reported revenue up 11% and headline earnings per share (HEPS) up 39%. The company said, "The group generated cash from operating activities of R23.4 million (September 2022: R18.2 million), paid tax of R7.6 million (September 2022: R5.5 million), spent R2.6 million (September 2022: R3.8 million) on capital expenditure and paid dividends to its equity holders and non-controlling interest holders of R20.2 million (September 2022: R15.7 million)."
In a trading statement for the year to 31st March 2024, the company estimated that HEPS would increase by between 53% and 67%. The share trades an average of R85,000 per day, which makes it practical for a small investment. Its portfolio of radio stations has relatively small, specialized audiences. Moneyweb has battled for years to produce significant profits.
Despite the company's improved financial performance and optimistic outlook, the thin trading volume and the specialized nature of its audience and services mean it remains a niche investment. Investors should be cautious and consider the liquidity risk and the challenges faced by the media and advertising industry.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.