Thursday, 1 August 2013

New satellite TV channels boost local product providers

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Satellite TV channels New stimulate local TV and product suppliers

Free-to-air TV known company that owns e.tv and is supported by HCI and Remgro, plans to launch a new satellite TV with satellite channel service in October this year.

Sat tv satellite direct esat satellite television

Sabido OpenView run the HD service in the South Africa and later at the regional audience. The service will initially consist of 15 TV channels and operate on the same targeted advertising, e.tv free-to-air model is built. However, consumers will have to invest in a satellite dish and a decoder to access the new service.

As one of the largest suppliers and installers satellite dishes and decoders South Africa, Ellies Holdings expects the new network - and perhaps a revival of activity in the gorilla sector Multi choice - increase of sales. The service should OpenView HD could win a million customers in the first year and three to five million customers in three years.

That's a lot of ECUs.


As a result of these and other species management Ellie hunger Opportunities chose not to pay a dividend this year, the choice to refuse the money for the "growth funds. D 'share declined from 1.8% to 790C on Tuesday due to shareholders of record to his disappointment.

However, Ellie results of the exercise in April 2013 were strong. Sales increased by 16.4% to R1996m, profit before tax rose 36% to R312m and HEPS up 36% to 74cps. The balance sheet is weak, but the company has recorded a positive net cash flow of R33M, compared with the negative change in R67m last year.

The consumer sector of satellite channel, which accounts for 65% of sales, saw its profits by 51.5% and gross profit increased to increase by 2%. According to the company's finances thanks to Eskom's energy saving program, the "green concept store in a store", and the expansion of domestic and commercial lighting ranges Ellie's Phase 1 project.

But in this area, growth slowed in the second half of the year when Eskom completed energy saving program and the other is not running. In addition, the South African Migration was delayed from analogue to digital terrestrial television (DTT) by errors in the communications department along with tv channels. Although the export of DTT in Africa, Ellie's inventory increased by 32% to R667m as it was forced to save products from any migration.

This is a problem because Ellie's significant investment capacity and product development. For example, about 80,000 boxes per month, choking is generated to much needed money. "Delays in the implementation of some of the group, the outlook continues to have an impact on our working capital requirements in the short term," the company said.

Yet sal Vunani Securities analyst Anthony Clark points out that the deadline for migration comes - that is extended December 2015. "The rest of Africa is ahead of us. Eventually the government will wake up and it will be a massive fight by 9 million decoders offer is committed to subsidize."

The infrastructure division, which includes the energy infrastructure, among other projects, solar and wind energy, telecommunications solutions and future water infrastructure, to the end of the year after the acquisition Botjheng water sales increased by 23%. But the division reflects a 9.9% decrease in EBIT. "Ellie is investing heavily in its new product line telecommunications - Optimization of Diesel Generator - led to the fall in the gross profit margin of 2%," Clark "said technology can provide significant savings for operators of mobile phone masts mobile and should start jobs. come by to see. "

Clark is "positive in the provision of infrastructure services of water." On Ellie's motion SA Water Network is on the verge of collapse. "S The next great crisis in this country and Ellie" is not the only company that started in to invest in this space. "

This is less clear in the decision not to pay a dividend. "This company is listed since long. Must be able to obtain a policy of stable dividend payments upright. Yeah, working capital is scarce and costs about 30%, but Ellie is not in a precarious financial situation and in tv channels."

The company trades at a PE of 10.9 times forward, however, the participation of a lot in the last year was 50%, 990c, before falling to 790C.

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