SABC could be pulling a massive profit, but people don't pay fees

SABC could be pulling a massive profit, but people don't pay fees

- The SABC would have made a profit of almost R1.5 billion if only people paid their licence fees

- Instead, the public broadcaster told Parliament that it was running at a loss of R482 million

- Citizens could potentially turn the financial tide at the embattled state-owned entity

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If South Africans loyally paid their TV licence fees, the SABC would have made a profit of around R1.5 billion.

Fin24 report that the cash-strapped state-owned entity instead reported a staggering R482 million loss.

While advertising brought in R4.58 billion for the most recent financial year, licence payments could have pushed the broadcaster into the green.

Boasting 18 radio stations, three channels and two more on DStv, the SABC has attempted to boost its collection rate.

READ ALSO: SABC is technically insolvent and struggling to cover R1.8b debt

Only 31% of South Africans pay their licences, with 69% avoiding payments altogether. In an annual report, the SABC revealed that only 2.9 million TV licence holders actually made an effort to pay, with 9.4 million holders in total.

If South Africa's evasion rate was similar to that of the British BBC, R2.3 billion would flow to the entity a year.

This would change the R482 million loss into a massive R1.5 billion profit and mean that the state wouldn't have to send hefty bailouts to the cash-strapped broadcaster.

Briefly.co.za reported that the entity had needed a R2.1 billion bailout to keep operations going earlier this month.

With the SABC technically insolvent and at the mercy of similar handouts, citizens could help turn the tide.

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Source: Briefly.co.za

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