South African Broadcasting Corporation (SABC) Group Chief Executive Officer (GCEO) Madoda Mxakwe says the public broadcaster has seen a year-on-year financial improvement.
The SABC Executive and board had its meeting with the National Council of Provinces cut short on Wednesday due to the absence of the Communications and Digital Technologies Minister Khumbudzo Ntshavheni and her deputy Philly Mapulane.
During an interview with the SABC, Mxakwe said the public broadcaster is moving in the right direction and that turning around an entity takes time.
He says, “One of the biggest challenges we have is the cost of the unfunded public mandate. The news division alone, it’s a one billion operation and we not expected to get any revenue in return. The acquisition of sport rights, it’s about R500 million a year. So, over-roll the SABC is spending over R1.5 billion on the cost of the public mandate, only 3% of that comes from government. We going to be preparing for the elections and that cost is actually bound by us.”
GCEO Madoda Mxakwe gives update on the latest developments at the SABC:
Annual Report
The SABC’s net loss improved by R329 million (62%) compared to 2020/21, resulting in a R543 million (73%) improvement in net loss over five years (2018 – 2022). Revenue grew by R90m (2%) year-on-year as a result of the marginal increase in sponsorship revenue.
The public broadcaster’s 2021/22 Annual Report was tabled in Parliament last week.
In a statement the SABC says, “The improvement in net loss was negatively impacted by the acquisition of sport rights of the Olympics, which accounts for 58% (R122 million) of the reported net loss. If not for the Olympics investment, which is a public mandate obligation, the operating position would have resulted in a loss of R78m, an 85% improvement from the previous fiscal.”
“Despite the revenue increase in 2021/22, revenue levels previously achieved in 2020 have yet to be realised primarily due to audience share decline. As a result, advertising revenue was significantly under budget by 23%. Revenue is projected to grow in 2022/23 and several initiatives are in progress to mitigating the risk.”
