The year to June 2000 presented Primedia with a new set of challenges,which the CEO covers in his report.Many of these were the result of external difficulties such as a tight consumer market in South Africa.Some were structural issues such as the group ’s over-exposure to cinema exhibition,the unacceptable levels of development costs incurred in the business-to-business operations of Metropolis*and the building of our overseas cinema chain.

The external pressures are not within our control,but the internal matters are,and resolving them is management ’s core focus.The group has clearly stated that one of its overarching objectives is to unlock value for shareholders and eliminate the “value traps ” that have been identified.Since the year-end this process has been accelerated.

Notwithstanding these difficulties,Primedia continues to be South Africa ’s leading media company,with a portfolio of exceptional brands and leadership in all of our markets.This quality has resulted in repeated growth in our advertising-based businesses,despite the tight market,as advertisers continue to recognise that excellent brands still attract consumers.

Following last year ’s restructuring,Primedia continues to fulfil its strategic vision,albeit in an environment of significant change.Traditional media companies survive and succeed by adapting to change and leveraging off that change to create growth opportunities.Primedia is no exception and with its portfolio of leading brands and strong market position will diligently pursue value added opportunities as and when they arise in our changing environment.

Issie Kirsh
Chairman