A dividend is in store for the Welkom Yizani BBBEE investment scheme after news that the underlying asset in the scheme, Media24, has declared a dividend of R141.5 million on 5 September 2013.
This will be closely watched by people who want to enter the scheme set for listing on an over the counter platform (OTC) on the 9th of December 2013.
The Welkom Yizani BBBEE investment scheme attracted more than 100000 participants at establishment in 2006. These investors subscribed for Welkom Yizani shares at R10 per share and were subsidised by Media24 to the tune of R40 per share.
Media 24 released this week its financial results for the six months ended September 2013. These reflected a dividend of R141.5 million was declared on 5 September 2013. Welkom Yizani will have share in this dividend proportionate to its 15% share of Media24.
Previously, for the twelve months ended March 2013, Welkom Yizani declared a dividend of 27,9 cents per share and 44,3c per preference. This was a marked improvement when compared to the 2012 full year dividend of 25.3 cents per ordinary share and 28.9 cents per preference share.
The 2013 dividend is derived from fair performance of Media 24 during the six months ended September. These results were defined by 6% growth in revenue to R4bn. Trading profit rose by 9% to R242m showing that Media24 is making more money from each rand of revenue than was the case previously.
Commenting about these results Media24 management said margins improved as a result of cost saving and right sizing. They noted that noted that newspaper revenue and subscription continued to be under pressure. Digital audiences show strong growth. The book publishing business produced satisfactory performance.
These results will be closely scrutinised by investor planning to enter the scheme when it lists on 19th of December 2013. The company did caution that some of its operations are seasonal in nature. Therefore the half year results may not necessarily be reflective of full year performance.