SABC loses R977 million for 2016/17

SABC loses R977 million for 2016/17

The South African Broadcasting Corporation (SABC) has posted a loss of R977 million for the 2016/17 financial year. The figure was revealed in the public broadcaster’s annual report tabled in Parliament.

The SABC had a year to forget with financial and operational fiasco’s plaguing the group. The public broadcaster’s losses nearly doubled in 2016 and after multiple scandals was left without a permanent CEO, COO and board of directors.

Former COO Hlaudi Motsoeneng was dismissed from his position after an ill-advised press conference in which he made various claims, allegations and slammed the work being done by the interim board which was appointed by Parliament

READ ALSO: Health minister announces massive ARV price cut.

The report shows that the only figure that went up for the SABC was its losses. The broadcaster’s revenue is down from R8.1 billion to R7.6 billion or a drop of 6% year-on-year.

Advertising revenue perhaps predictably fell by 5% to only R5.6 billion. Most analysts blame the drop in revenue on Hlaudi Motsoeneng’s 90% local content policy which was seen as disastrous.

TV Licensing revenue dropped by 7% to R915 million. The SABC recently cut ties with the company which was tasked to collect TV-license fee’s after it emerged that the company had not only failed to meet its targets but was also using SABC staff for its work.

Former acting CEO James Aguma suggested earlier in the year that the SABC could charge TV-license fees for computers, smartphones and tablets.

Sponsorship revenue declined to R384 million a whopping 18% down from the previous year.

Worryingly for the public broadcaster, its operational expenses remained the same as the previous year at R8.6 billion. learned from that the report shows that the SABC only has R82 million in cash reserves which means that there was an outflow of R800 million.

According to the report, the SABC’s cash reserves are under pressure because the organisation had to use these reserves for capital expenditure projects, purchasing of ever-increasing sports rights and increased costs in delivering its basic services to the people of South Africa.

READ ALSO: Zimbabweans fear repeat of 2007-2008 economic crisis

Do you have a story to share with Briefly? Visit our Facebook page where you can send us a message or leave us a comment. Your story could be shared online.

To stay up to date with the latest news, download our news app on GooglePlay or iTunes today.


Mailfire view pixel