AFRICAN Media Entertainment ’s (AME’s) revenue growth at flagship radio station Algoa FM and at radio advertising sales subsidiary United Stations has led to a 38% increase in headline earning per share for the six months to the end of September.
AME reported a revenue increase of 21% from a year earlier, driven by solid growth at the two entities. Pretax profit was R26m, up 33% from a year earlier.
The company said revenue at Algoa FM was better than expected, especially as it had expected a downturn in spending after the 2010 Soccer World Cup.
AME said it had enjoyed the benefits of a licence amendment by the Independent Communications Authority of SA that extended its broadcast footprint to include the coastal towns of Knysna, George and Mossel Bay and opened new revenue streams.
The company said its radio advertising sales subsidiary, United Stations, had increased its revenue significantly since winning the account of Johannesburg radio station Kaya FM.
“Kaya FM, along with Capricorn FM, have been the drivers of new business development as they provide attractive audiences to categories of advertisers that United Stations was previously unable to reach,” it said.
Looking ahead, AME said it was positive as it had increased its new product offerings.