Media and entertainment group Primedia on Tuesday reported a 195.7 percent rise in headline earnings per share to 68 cents for the 12 months ended June 30 2004 from 23 cents a year ago.

The results are in line with the Primedia's trading update at the beginning of August which said that its results would be substantially higher. In terms of JSE Listings Requirements, a substantial increase refers to a rise greater than 30 percent.

However, they came below market expectations according to I-Net Bridge's consensus of analysts. Analysts polled expected the group's HEPS at 85.8 cents.

The company's final distribution per share is 24.3 cents making a total of 40 cents per share for the year.

Financial highlights

Its revenue rose 4.8 percent to R1.7-billion from the previous R1.6-billion.

Other financial highlights included an increase of 30.5 percent in operating income to R259-million, a rise in profit before tax by 139.5 percent to R262.7-million while cash generated from operations improved by 79.5 percent reaching R350.8-million.

The group also announced that its free cash flow per share grew 65.5 percent to 120 cents.

Other highlights

During the period under review, Primedia acquired a further 30.8 percent economic interest in 94.7 Highveld Stereo radio station while boosting its black economic empowerment credentials. Primedia was during the period under review ranked as the 17th most transformed company in South Africa.

The group also disposed of loss-making international assets.

Acquisition of New Africa Investments (Nail) media assets was nearing completion, Primedia said.

"A very good year"

Commenting on the group's performance, Primedia CEO William Kirsh said: "Primedia has had a very good year. The group has further entrenched its leadership position in the media sector and its ability to generate cash has improved dramatically. Excellent progress has been made in delivering on our strategy of enhancing the breadth of the group's South African media portfolio and extracting synergies, particularly between our advertising businesses."

Prospects

Looking ahead, Kirsh expressed confidence in the group's prospects: "Our growth strategy is centred on continued innovation, organic and acquisitive growth, geographic expansion into Africa and entry into new media sectors," he continued.

"With this clear vision for growth and a highly energised team intent on success, there is good reason to be optimistic."

Primedia N-shares rose 2.81 percent to 9.15 rand on the JSE on Tuesday, while the less liquid ordinary shares rallied 9.43 percent to 9.40 rand.