Our opinion on the current state of AMEAfrican Media Entertainment (AME) is a company which specialises in running radio stations and whose revenue comes principally from advertising on those stations. It has four divisions:
(1) Algoa, which broadcasts from the Garden Route to the Wild Coast,
(2) OFM, which broadcasts in the Free State, North-West province, Northern Cape, Southern Gauteng, and Northern Natal,
(3) United Stations, which sells and creates advertising material for the radio stations, and
(4) Radio Heads, which offers media planning and buying, creative strategy and copy-writing, and syndicated programming.
AME acquired Moneyweb and a share of Classic FM. The company said, "On 30 September 2019 Classic FM South Africa (Pty) Ltd was placed under voluntary business rescue."
In its results for the year to 31st March 2024, the company reported revenue up 8% and headline earnings per share (HEPS) up 63%. The company said, "The group generated cash from operating activities of R64,9 million (March 2023: R43,5 million), paid tax of R15,3 million (2023: R11,6 million), spent R5,4 million (2023: R6,3 million) on capital expenditure and paid dividends of R33 million (2023: R28,7 million) to its equity holders and non-controlling interest holders. The group also repurchased 212 600 shares (2023: 701 775 shares) during the period which resulted in a cash outflow of R6,9 million."
In a trading statement for the six months to 30th September 2024, the company estimated that HEPS would increase by between 16% and 25%.
The share trades an average of R43,000 per day, which makes it barely practical for a small investment. Its portfolio of radio stations has relatively small, specialised audiences. Moneyweb has battled for years to produce significant profits.
AME trade ideas
Our opinion on the current state of AMEAfrican Media Entertainment (AME) is a company which specialises in running radio stations and whose revenue comes principally from advertising on those stations. It has four divisions - (1) Algoa which broadcasts from the Garden Route to the Wild Coast, (2) OFM which broadcasts in the Free State, North-West province, Northern Cape, Southern Gauteng and Northern Natal, (3) United Stations which sells and creates advertising material for the radio stations and (4) Radio Heads which offers media planning and buying, creative strategy and copy-writing and syndicated programming.
AME acquired Moneyweb and a share of Classic FM. The company said, "On 30 September 2019 Classic FM South Africa (Pty) Ltd was placed under voluntary business rescue." In its results for the year to 31st March 2024 the company reported revenue up 8% and headline earnings per share (HEPS) up 63%.
The company said, "The group generated cash from operating activities of R64,9 million (March 2023: R43,5 million), paid tax of R15,3 million (2023: R11,6 million), spent R5,4 million (2023: R6,3 million) on capital expenditure and paid dividends of R33 million (2023: R28,7 million) to its equity holders and non-controlling interest holders. The group also repurchased 212 600 shares (2023: 701 775 shares) during the period which resulted in a cash outflow of R6,9 million."
The share trades an average of R111 000 per day on average which makes practical for a small investment. Its portfolio of radio stations have relatively small, specialised audiences. Moneyweb has battled for years to produce significant profits.
Our opinion on the current state of AMEAfrican Media Entertainment (AME) is a company specializing in running radio stations, with revenue coming principally from advertising on those stations. It has four divisions:
1. **Algoa FM**: Broadcasts from the Garden Route to the Wild Coast.
2. **OFM**: Broadcasts in the Free State, North-West province, Northern Cape, Southern Gauteng, and Northern Natal.
3. **United Stations**: Sells and creates advertising material for the radio stations.
4. **Radio Heads**: Offers media planning and buying, creative strategy and copywriting, and syndicated programming.
AME recently acquired Moneyweb and a share of Classic FM. The company said, "On 30 September 2019 Classic FM South Africa (Pty) Ltd was placed under voluntary business rescue." The share is extremely thinly traded, making it impractical for private investors.
In its results for the six months to 30th September 2023, the company reported revenue up 11% and headline earnings per share (HEPS) up 39%. The company said, "The group generated cash from operating activities of R23.4 million (September 2022: R18.2 million), paid tax of R7.6 million (September 2022: R5.5 million), spent R2.6 million (September 2022: R3.8 million) on capital expenditure and paid dividends to its equity holders and non-controlling interest holders of R20.2 million (September 2022: R15.7 million)."
In a trading statement for the year to 31st March 2024, the company estimated that HEPS would increase by between 53% and 67%. The share trades an average of R85,000 per day, which makes it practical for a small investment. Its portfolio of radio stations has relatively small, specialized audiences. Moneyweb has battled for years to produce significant profits.
Despite the company's improved financial performance and optimistic outlook, the thin trading volume and the specialized nature of its audience and services mean it remains a niche investment. Investors should be cautious and consider the liquidity risk and the challenges faced by the media and advertising industry.
Our opinion on the current state of AMEAfrican Media Entertainment (AME) is a company which specialises in running radio stations and whose revenue comes principally from advertising on those stations. It has four divisions - (1) Algoa which broadcasts from the Garden Route to the Wild Coast, (2) OFM which broadcasts in the Free State, North-West province, Northern Cape, Southern Gauteng and Northern Natal, (3) United Stations which sells and creates advertising material for the radio stations and (4) Radio Heads which offers media planning and buying, creative strategy and copy-writing and syndicated programming. AME recently acquired Moneyweb and a share of Classic FM. The company said, "On 30 September 2019 Classic FM South Africa (Pty) Ltd was placed under voluntary business rescue." The share is extremely thinly-traded which makes it impractical for private investors. In its results for the year to 31st March 2023 the company reported revenue up 7% and headline earnings per share (HEPS) up 30%. The company said, "The group generated cash from operating activities of R49,6 million (March 2022: R47,1 million), paid tax of R11,6 million (2022: R10 million), spent R6,3 million (2022: R3,6 million) on capital expenditure and paid dividends to its equity holders and non-controlling interest holders of R28,7 million (2022: R20 million). The group also repurchased 701 775 shares (2022: 79 174 shares) during the period which resulted in a cash outflow of R22,6 million (2022: R2,4 million)". In a trading statement for the six months to 30th September 2023 the company estimated that HEPS would increase by between 30,8% and 44,2%. The share trades an average of R80 000 per day on average which makes practical for a small investment. Its portfolio of radio stations have relatively small, specialised audiences. Moneyweb has battled for years to produce significant profits.