South Africa’s struggling public broadcaster SABC is implementing innovative trade models to improve its licence and advertising revenues after reporting a year loss of almost R1 billion, Communications Minister Ayanda Dlodlo said.
SABC on Tuesday reported a net loss after tax of R976 million for 2016/2017 largely due to declining advertising, sponsorship and TV licence revenue. SABC’s annual report showed that revenue and other income declined by 6% to R7.6 billion year-on-year.
“The planned interventions would be the strategies to increase advertising and television licence revenue. Also, innovative trading models for radio, television and digital media service are being devised and implemented to ensure optimisation of the SABC’s commercial position,” Dlodlo said.
SABC reported that advertising revenue dropped to R5.6 billion compared to R5.9 billion. Sponsorships declined to R384 million compared to R469 million and TV licence revenue fell by 7% to R915 million.
Briefing members of parliament, the minister said some of the targets that were set for the public broadcaster was to maintain a minimum cash equivalent balance of R600 million.