South Africa: Johncom Expects Jump in Earnings
Media company Johnnic Communications (Johncom), which owns media assets including Nu Metro cinemas and the Sunday Times as well as half of Business Day, said last week headline earnings per share would be 30%- 40% higher for the year to March. Attributable earnings a share were expected to increase 15%- 25%.
Johncom is selling its 38% stake in M-Net/SuperSport to media group Naspers, and Ambekar said that strong results reflected in the first half of the year meant future results for Johncom might not be as rosy after the sale.
However, his predictions were that M-Net would have increased its performance by 40%, outpacing core operations. He said that Nu Metro cinemas were likely to be the star performers, with a 55% increase. Ambekar said Johncom's losers for the year would be Gallo Music Group and its African operations which would have substantially increased their losses to R70m from last year's R40m .
(Business Day (Johannesburg), 14 June 2007)