South Africa’s New Vision Media plans to grow in New York and Nigeria
New Vision Media, the diversified local media group, plans to grow its New York operations and expand into Nigeria in the future. However, for now the focus is on consolidating its South African business "because growing too fast can be risky".
Damien Brown, the group chief executive at New Vision Media, said last week that for the next year, the group would watch cash flow and ensure the business was solid.
"We have to watch cash flow because growing too quickly is expensive and we don't want to jeopardise jobs and the business," Brown said.
Like most companies in the media industry, New Vision Media was also affected by recession as it found it more difficult to obtain credit.
"Last year was our highest year in the four years that we have been operating," he said. "Ever since we started, we have been doubling turnover every year and I am sure that we will do just that this year as well." The company's turnover in its first year was R700,000 and the expected turnover for this year is R23 million.
The company is made up of four subsidiaries, Sovereign State, New Vision Pictures, Film Solutions and Cream Cartel Clothing. New Vision Pictures was recently commissioned to produce 30 television spots for the 2010 MTN South African Music Awards.
Two months ago, New Vision Media sold a 30 percent shareholding to a black economic empowerment (BEE) partner, Kweku Mandela, a grandchild of former president Nelson Mandela, for an undisclosed amount. "We did not really sell out just for BEE, but it was also because of the competence he brings to the table. He knows the industry and he studied abroad," Brown said.
The rest of the company is owned by New Vision Holdings (35 percent) and SouthWinston Investments (35 percent). The firm has 30 employees in South Africa.